Firoz.T.Totanawala The Bangalore Metro Reporter Global Investors Meet : Mining Monopoly ...

FIROZ,T,TOTANAWALA

THE BANGALORE METRO REPORTER 

 Global Investors Meet : 

 Mining Monopoly ... 

 The Global Investors Meet saw Big Industrialists Corporate houses etc. signing MoU with the state government for establishing their projects worth lakhs of crores! MoUs were signed for various projects. Everything is OK. If the promised investments really materialise, the state would become a heaven on earth. With unemployment becoming a thing of past on these projects provide employment to about 10 lakhs, Karnataka will become a paradise on earth. But the question is - whether the promised proposed money will become a reality? Interestingly the Steel Plants and Mining industry has attracted projects worth more than two lakh with the Mining Lords and Ministers, that is Bellary Reddy Brothers prepared to invest 36000 crores! 

 The two day Global Investors Meet Organised by the Karnataka Government is definitely a success going by the hundreds of MoUs signed with the who is who of Indian Industry and Corporate houses. Except the Ambani Brothers, most of the Industries Czars have come to the GIM. As per the statistics ruled out by the government, MoUs were signed for various projects worth more than 4 lakh crores! In commonman’s language, the state will be getting investments worth lakhs of crores for various projects, which generate huge employment potential and revenue to the state. 

Well on the face of it, the GIM was a grand success and the BJP government can take extra mile publicity for this great feat, atleast for another three months. The government had spent crores of rupees towards the publicity to the GIM. Apart from the publicity department, every government departments and statutory bodies were made to spend huge money for larger than life advertisement in the newspapers and TV channels. Advertisements were inserted in newspapers of other states too including some abroad. Even prior to the GIM, Chief Minister B.S.Yeddyurappa accompanied by bureaucrats and few ministers toured many big cities to hold ‘Road shows’ in Star Hotels to attract the industrial houses etc. 

Now that the GIM has ended with MoUs being signed for projects worth lakhs of crores, the time has come to take stock of the situation and the ground realities about the projects, its impact and the result. If even 50% of the MoUs becomes a reality, the state will become semi heaven. But the government is confident of 60% fruitification of MoUs. 

On the face of it, the GIM has been monopolised by the Steel and Mining Lobby. The Steel giants have inked MoUs worth almost 2 lakh crores with Mining Lord and Minister Janardhana Reddy inking (through his wife) a 36000 crore for Brahmini Steel in Bellary region. The Steel giant Arcelor Mittal too signed a MoU for Steel Plant Project worth 30 thousand crores. In all Seven Companies have entered a MoU for Steel Plant. In a way, the Steel lobby has overhadowed all others in the GIM. 

Interestingly, all the steel companies want their own captive mining area for their steel plant. Luxmi Mittal, the No.1 in Steel business in the world, left no one in doubt that his project depends on the availability of mining area. It may be recalled that Mittal had tried his hands in mineral rich Jharkhand and Orissa. But he could not progress further because of the difficulty in getting clearances. For the last one year, Mittal was counting Karnataka for a captive mining area to establish his steel plant. And he has zeroed on Bellary region where the mining lobby is running the state government. Mittal wants captive mining area, assured water and power supply to start the project. The same is the case with other companies who are also demanding the same facilities. 

The attraction of the Mining lobby to Karnataka is understandable. The state is run by the Mining Lords who are controlling both the party and the BJP. The Mining Lord and Minister Janardhana Reddy is the Minister for Infrastructure and Tourism. His brother Karunakara Reddy is the Revenue Minister. And their hold over the government is complete as the Chief Minister B.S.Yeddyurappa had surrendered before them long back. 

Nobody expected Janardhana Reddy to sign MoU for a steel plant worth 36000 in the GIM. He is busy in establishing Brahmini Steel, a 30 thousand crore project in AP and had laid a separate railway line to transport iron ore from Bellary. The project is facing many hurdles including the hostile AP government and a CBI probe. 

With his MoU for another Brahmani Steel in Karnataka (in Bellary region) at a cost of 36000 crores, Janardhana Reddy has shocked everybody. He had proved richer than Mittal’s Arcelor, JOSCO, PSW, Vijayanagar Steels et al. Whether the Reddy Brothers have the where withal to pour 36000 crores or not, is another matter. But the fact remains that this is a very calculated move by the Mining lobby. 

As the government has signed the MoU, it is duty bound to provide captive Mining areas to the companies along with assured water and power supply. The government has created a land bank of about one lakh acres in various parts of the state and will be acquiring more very soon. It had to provide mining lands to the steel companies. The steel companies have concentrated Bellary region for their steel plant and mining. Today it is next to possible to get mining lands and commence mining. The Mining lobby have already exhausted prime mining areas in Bellary region that is Sandur, Hospet, Bellary et al. They have encroahced into forest and government lands. In normal times, they have to approach the government for mining lease and that means spending crores of rupees towards cultivating politicians in power and the bureacrats and the process is time consuming. But if they sign MoU with the government in the GIM, they will be spared a lot of money and time. And that is what exactly happened. 

 Mittal was planning to establish a steel plant in Karnataka for the last one year. He would have approached the government for lands and lease in normal way. Mittal knew what that means. So, when the government invited him to attend the GIM, he happily came and inked 30 thousand crore steel plant MoU. With the Mining Lords Janardhana Reddy and Brothers running the government, it is easy for him to get the works done. At the same time, it will be very easy for Reddy Brothers to legalise their illegal mining and get some more mining areas as they too have entered a MoU with the government. The same is the case with other Steel companies. 

 All said and done, it is not easy to take up mining in a big way to produce crores of tones steel every year. Within few years, the iron ore becomes extinct in the state. More than anything, the state can only recommend the Mining lease and it is the Central government that has to issue the same after clearance from environmental, forest and other departments. As such the final result will be ‘stand still’. But as the government itself will be moving the file, it may be possible to help the mining and steel lords. Still, it is not so easy. And the MoU may not end up with agreements. 

In the 2000 GIM held under the then CM SM Krishna, investors have promised more than one lakh crore! And over the last ten years, not even 25% of the promises have become reality. 

Be that as it may, BSY will have the satisfaction of holding the GIM and stealing the lime light attired in sparkling suits transforming from a farmer’s leader (?) to a corporate Head! And the Mining Lords monopolising the GIM is also very conspicious.