Ban on ore exports a boon for Reddy brothers

Bangalore: The Karnataka government has banned the export of iron ore -- a step intended to foil illegal mining but which might end up helping the Reddy brothers, who are powerful miners and politicians.

The government's decision on Thursday will prevent miners from transporting iron ore to ports in the neighbouring states. It has already banned issuing permits to transport iron ore and other minerals for exports, saying this is necessary to protect natural resources.

These decisions are likely to help Tourism Minister G Janardhana Reddy, his elder brother and Revenue Minister G Karunakara Reddy, and younger brother and state assembly member G Somashekara Reddy. They own the Obulapuram Mining Company and are accused of large-scale illegal mining in Bellary district in Karnataka as well as neighbouring Andhra Pradesh.

The government crackdown on iron ore exports is being seen as ill-timed and irrelevant because it will affect miners in Karnataka. But the brothers' main mines are in Andhra Pradesh, and this could help them corner the iron market.

The brothers on Thursday went on a march to counter the Congress party's 'Bellary chalo' march to protest against the BJP government's alleged failure to check illegal mining

The ministers dared Congress to prove its allegation that they are involved in illegal mining. "I would hang myself, if Congress prove its allegation that I am involved in illegal mining," Janardhana Reddy declared.

Sreeramulu said he will resign if the allegations are proved.

Opposition leader Siddaramiah, who is leading the Congress rally, rejected the brothers’ claim that the party had insulted the people of Bellary. "Bellary is not a fiefdom of the Reddys. It is part of Karnataka and India. The Congress has done nothing that would bring insult to Bellary people. They are also our brothers and sisters," said Siddaramaiah at Kora in Tumkur district.

Between 2003 and now, over 30 million tonnes of iron ore has been illegally mined and exported from Karnataka causing a huge revenue loss. Opposition parties claim the illegal mining scam is worth around Rs 60,000 crore.