Bellary District - Mining Industry

Mining Industry

Bellary district has 25% of India's Iron ore reserves. Till 1994 handful of mining companies operated here including state owned NMDC. Later Govt issued mining licenses to many private operators. Mining Industry boomed with surge in Iron Ore prices due to demand from emerging China. Mining license allocation policy from Central govt was based on Political Nepotism rather than merit. Flawed mining policy lead to wide spread illegal mining. Since year 2000 money from illegal money flowed into electoral politics of Karnataka State. This led to emergence of powerful Reddy Brothers to state politics. Reddy brothers fueled money from illegal mining into politics, there by King Makers of Karnataka State politics. Ombudsman report on mining in Karnataka state found that the promoters of privately owned mining companies in the Bellary region paid off politicians, and then joined politics themselves, rising to positions in the Karnataka state government. These mining businessmen-turned-politicians exerted so much influence over the local officials that the Indian media began describing Bellary as a "new republic".

Despite the availability of minerals in large quantities, this district is considered to be an industrially backward district. There are 23 units of large and medium scale industries in this district with an investment of Rs.447.76 crores employing around 9,222 persons At present it occupies ninth place in the state. Sathavahana Ispat Ltd. is the first Pig Iron plant setup in the region to utilize the abundant iron ore reserves available, Kirloskar was the next to follow with their Pig Iron plant. However with the commissioning of Jindal Vijayanagar Steel Limited at Hosapete, the industry scenario of this district underwent sea changes. It is understood that Mukund Steels and Kalyani Steels have started industries in this area. The inflow of investment into these industries would be around Rs.30,000 Crores. The district will therefore come under heavy pressure on basic infrastructure such as power, communication, health, education and police stations which again invite heavy investment to create the needed infrastructure. Urgent action is needed to pool the resources under various sectors such as District Sector, State sector, Border Area Development, HKDB etc., and prepare a perspective plan to the emerging challenges. It has already drawn the attention of social scientists economists, administrators and other related functionaries to think over the possible positive and negative impact in this area.The ruthless and illegal mining of iron ore in the district has caused envoirnmental damage and also wide ranging social and economical impact.Despite large deposits of iron the mining mafia of Reddy brothers assisted by the backward caste goondas such a Nayak (Byada in Kannada), looting precious mines relentlessly with the support of BJP leaders form both centre and state. resulted in capitlism. now the reddys have grown to topple governments in several states. key aids of gali Janardhana reddy are Sriramulu, Suresh Babu, Nagendra, Alikhan, Verma, Chandru, Ragavacharulu