Exchequer maylose billions

BANGALORE: Should billions of rupees in turnover and a steady revenue of Rs 250 crore in royalties be jettisoned on a whim?
Chief minister H D Kumaraswamy's proposal to ban mining in the state in the wake of bribery allegations against him, is being dubbed "knee-jerk". The mining\quarrying industry is aghast at the prospect and government officials have advised the CM that the move is retrograde."Revenue in royalties from just iron ore, largely in Bellary, is Rs 80 crore. What is the need to lose this?" sources asked.
The state mines gold, iron ore, manganese, bauxite, limestone, dolomite, China clay, pink granite, black granite, chromite, felsite, moulding sand, feldspar, silica sand, corrondum, laterite, graphite and dunite. Of these, the grey metal -- iron ore -- heads the list with highest contribution.
In Bellary alone, the turnover from 30 legal mines is Rs 50 billion (Rs 5,000 crore), as 25 million tonnes of iron ore are excavated per annum. Besides, about 3 lakh direct and indirect workers are employed by the industry, all of whom will be on the streets if the industry is shut down.
"There is no other industry in a place like Bellary. The country has signed agreements with Japan and the World Trading Corporation, how can the production of iron ore just be stopped?" association vice-president and BJP MLA Anil Lad asked.
Quarrying industry members point out that the state has already suffered by such bans. The 13-year 'Veerappan' ban on black granite quarrying in Chamarajanagar (lifted for one month in 2000 before being reimposed after Rajkumar's kidnap) cost the state Rs 780 crore (Rs 60 crore annually) in royalties.
"The ban has been lifted now, but old quarrying leases have lapsed. Fresh ones are still being processed. So, legal quarrying has not yet been activated in Chamarajanagar," sources said.
Presently, the state has a temporary ban on granite quarrying in Kanakapura till a joint survey by forests and mines departments is complete. Just this one area generates an average Rs 6 crore per annum in royalties, with a turnover of over Rs 150 crore.
Sources said: "Smaller companies are closing shop suffering from this monthlong ban. Reviving it will become as difficult as Chamarajanagar."