Export in full swing despite ban

M.today

By: P M Raghunandan, Deccan Herald

Hagari, Bellary August 5: Muddy iron ore-laden trucks are lined up for nearly a kilometre at a check-post on the busy Bellary-Ananthpur state highway on Wednesday.

 

  

The highway connects Bellary to three ports in Andhra Pradesh. Officials at the checkpost located in Hagari village, which is about 20 kms from Bellary City, are examining the documents and the truck drivers are anxiously waiting to get a green signal to proceed with the transport of the consignment.

It is business as usual in the mining hub - Bellary-  when this reporter visited the checkpost around 11 am. The State Government’s order of July 26 and July 28 ordering banning of iron ore exports from the state ports and banning issue of transport permits for export of ore respectively seems to have little impact on ground zero.

Sources said that in addition to these orders, the Mines & Geology Department has issued an order directing mining companies to surrender transport permits which they have already obtained. However, mine owners said that they are yet to get a copy of the order.

Crucial route

The Bellary-Ananthpur highway is a crucial route leading to three ports in the neighbouring Andhra Pradesh - Visakhapatnam, Kakinada and Krishnapatnam. On an average 5,000 trucks with ore pass through the Hagari checkpost a day, according to official sources. K Venkat Rao, President, Bellary District Transport Operators’ Association, said about 8,000 trucks transport iron ore every day from Bellary district. The number has not declined even after the government’s tough decisions on ore export.

“Trucks are plying as in the past. The only difference is that instead of moving towards ports of Karnataka, they are heading towards various ports in the neighbouring states”, he said.

About 40 million tons of iron ore is extracted annually in Bellary, and of this 60 per cent is exported, mainly to China. Industry leaders have been claiming that the domestic usage of ore is hardly 10 to 15 per cent as there is no demand. Official sources in Andhra Pradesh said that Karnataka’s ore is being exported from the ports of Andhra Pradesh to China. There are a handful of sponge iron plants in the districts where the ports are located. Hence, there is no demand for 63.5 grade iron ore which is being transported from Bellary to the ports. For sponge iron factories 52 grade ore is used, sources said.
But officials in Bellary argue that the transporters are using permits which have 30 days’ validity. The permits in use are those issued prior to July 28, the day the government issued transport ban order.

Random checking

T R K Kumar, a motor vehicle inspector at the Hagari check-post said, “Trucks movement is normal. There is no much difference before and after the ban. We do random checking of the permits carried by the drivers. Nearly 5,000 trucks pass through this stretch”.

But the inspector had no reply as why the movement of number of trucks is not on the decline despite the ban. In Bellary, many officers are ready to explain the reality but they do not want to be named.

N R Pratap Reddy, a JD (S) leader in Bellary alleged that mine owners are floating fake companies in AP to send ore to their own firms. Karnataka ore is exported from the ports of AP. “Mine owners will continue to fool the government as in the past. The GOs issued by the government are of no consequence unless illegal mining is stopped.”