From riches to rags -that's Bellary miners' plight

By Shivakumar G Malagi

Banks don't want to lend to them, policymakers are hesitant to make plans for them and customers don't know what to expect of them


Once counted among India's highest taxpayers, the hot-shot mining barons of Bellary are the new untouchables in town. Banks don't want to lend to them, policymakers are hesitant to make plans for them and customers don't know what to expect of them.“Miners are a wounded lot today. Our output is falling and we are merely trying to keep our heads above water, dealing with each day as it comes. Our assets are not being utilised, we are not generating any working capital and there is so much uncertainty. No buyer or steelmaker is willing to sign long term arrangements because you don't know when the mine will be shut as every day brings a new order either from the court or government,“ rues Mr Tapal Ekambaram of Tumati Mines. A reputed mine ownerturned politician, who had spent nearly Rs 60 crore on the 2008 assembly polls, has reportedly turned defaulter with a couple of banks and is now having second thoughts about contesting the coming elections in the state.
“Forget the elections, I will be forced to declare bankruptcy if we do not get back our mining license. I can't live upto people's expectations this time as I have had no money coming in for the last two years and can't offer to spend hugely on elections. I have decided instead to concentrate on other business with whatever money I have left,“ he says.
The bad times began in July 2010 when the Karnataka government banned iron ore exports and the deathknell sounded the following July when the Supreme Court banned iron-ore mining in the state.Worried miners began to borrow heavily from banks to sustain their businesses and flamboyant lifestyles. Banks too rushed to offer credit to their high-end clients, but it's a different story today. With no end in sight to the crisis, these same banks are now breathing down the necks of miners for repayment of loans and are beginning to see mining and infrastructure as high-risk.
The tiny branch of the State Bank of India in the mining town of Hospet , which saw a staggering 2,000 per cent increase in withdrawals after the 2003 Chinese boom, is today busy issuing notices for repayment of loans and advertisements in newspapers calling for e-bidding of the once staggeringly wealthy mining barons' immovable properties.
Only last Saturday, the SBI Hospet branch issued an advertisement inviting bidding for two windmills owned by a reputed mining family of Hospet with political interests for nonpayment of a loan about Rs 37 crore, that would have been a paltry sum for miners just a few years ago. An official with the SBI Bellary branch estimates the district has bad loans of about Rs 2,000 crore on account of the mining crisis. And almost every miner, irrespective of whether he has political interests, is a thirdgeneration member of an old mining family, or is a veteran heading a listed or unlisted firm, admits he has been going through hell recently,.
Bellary-Hospet Mine Owners' Association general secretary, Hothur Mohammed Iqbal says no miner even wants to think about his bad finances as there is no solution in sight at present. “The saying Ooper sherwani aur ander pareshani! (Well dressed on the outside but worried sick inside) applies to the miners today as they are trying to maintain an aura of all is well, when the reality is so different. Most of the miners , who failed to make the right investments when the market was upbeat, are in a lot of trouble financially. Most of them will be stretched to meet the Supreme Court's penalties. They are paying for the deeds of the mining mafia,“ he laments.
A number of miners and mining contractors say they are victims of a system that gives them the Hobson's choice of either playing by its rules or not playing at all. Those who have borrowed from moneylenders, and have not diversified their business interests are the worst hit. Most miners are also facing a huge liquidity crisis as buyers are hesitant to touch their properties for fear that they may have been attached by an investigating agency probing illegal mining. Those who do offer to buy, quote half the property's value, making the sale untenable.
In the circumstances most are dreading paying the penalties imposed by the Supreme Court. The department of mines and geology has issued notices to as many as 63 lease operators imposing penalties for illegal mining as recommended by the CEC.

Beginning of the end for Bellary Reddy mine barons?

By Shivakumar G Malagi

Aug 1, 2012

Cap: Arrested Kampli MLA Suresh Babu undergoes a medical checkup before being produced in the ACB court in Hyderabad.

With Kampli MLA Suresh Babu and former tourism minister Janardhan Reddy behind bars, another Bellary MLA, Somashekhar Reddy set to be arrested in the Cash for bail scam and the trusted associate of the Reddys and Independent MLA B. Sriramulu likely to be named in the same case, politics in the mining hub of the state has come full circle.

The Reddy troika and their associates, who once reigned supreme in Bellary politics with their money and muscle power, have now been reduced to fighting legal battles to save their skin and make sure they do not lose all the wealth and clout they have accumulated in the past two decades.

The leader likely to be most affected by the sudden turn of events following Suresh Babu’s arrest is Valmiki community leader and BSR Congress founder B. Sriramulu who was planning to make a big splash in state politics.

Babu’s confessional statement to the Andhra Pradesh Anti-Corruption Bureau(ACB)—copies of which are available with Deccan Chronicle— says that it was Sriramulu who called him and informed him that one R. Suryaprakash Babu knew some judges in Hyderabad and was ready to help out in securing bail for jailed mine baron Janardhan Reddy.

Sreeramulu also allegedly told Babu that Suryaprakash would be calling him on his mobile phone which he did and told the Kampli MLA that he knew a registrar of the AP high court who could influence the CBI special judge. The information was also conveyed to Janardhan’s elder brother, Somashekhar Reddy, said Babu.

This allegedly triggered off the chain of events leading to the grant of bail to Janardhan Reddy on May 11 for a bond of Rs 5 lakh and two sureties of the same amount by the CBI special court judge Pattabhi Rama Rao, who is one of the accused in the Cash for bail scam and has been suspended from service. The bail was subsequently cancelled by the high court after the scam came to light.

Babu said that he had visited Hyderabad on May 9, 2012, two days before Janardhan Reddy was granted the controversial bail. Somashekhar Reddy reportedly told him that one Yadagiri Rao—another accused in the Cash for bail scam—was ready to arrange a meeting with the son of CBI judge Pattabhi Rama Rao.

According to the Kampli MLA, Yadagiri Rao demanded Rs 20 crore for influencing Pattabhi Rama Rao to grant bail to Janardhan Reddy—Rs 5 crore for Pattabhi Rama Rao, Rs 5 crore for a ‘vital link’, retired judge Chalapati Rao, Rs 5 crore for himself and Rs 5 crore for high court expenditure, to which Somashekhar Reddy reportedly agreed.

All the accused also meet at the residence of advocate Umamaheshwara Rao in Hyderabad on May 10, a day before bail was granted to Janardhan Reddy.

They later had a meeting with the son of the controversial CBI judge when it was conveyed to him and Yadagiri Rao that the cash would be transferred only after the bail was granted, said Babu in his confession.

Rs 10 crore was to be handed over after the bail was granted and Rs 10 crore after Somashekhar Reddy saw the bail order.

After bail was granted at around 4.45 pm on May 11, the accused met at Daspalla Hotel in Hyderabad where Somashekhar Reddy reportedly handed over the cash to Yadagiri Rao to complete the deal, Babu said.

The MLA also disclosed to the ACB officials that he had thrown away his mobile phone and Sim card on coming to know that the CBI had started probing CBI special court judge Pattabhi Rama Rao.

Nephew Kampli MLA Suresh Babu sings uncle Sriramulu’s swansong?

By Shivakumar G Malagi

Aug 1 2012: 

The sensational “cash for bail” scam which has snared Kampli MLA Suresh Babu, and is set to expose the role played by his uncle and Bellary MLA B. Sreeramulu in arranging for a whopping bribe to be paid to a judge to bail out his friend and mentor Janardhan Reddy, could also nail the last of the powerful Reddy clan.

Somashekara Reddy, the head of the Karnataka Milk Federation is in hiding somewhere in Anantapur district and is rumoured to have begun negotiations over his surrender. If and when he does surrender to the Andhra Pradesh Anti-Corruption Bureau (ACB), it could spell the end of both, the Bellary brothers’ decade long hold over the mine-rich city and the nascent solo political career of Reddy confidante BSR Congress party chief B. Sreeramulu.

The ACB, probing the scam has leads in the investigation that point to the Reddy-Sreeramulu camp abetting the offense. In the confession statement by the arrested Kampli MLA Suresh Babu, made available exclusively to this newspaper, Bellary (ST) Independent MLA Sreeramulu and other influential persons in the family are seen as having worked different channels to secure bail for the imprisoned former minister Gali Janardhan Reddy by influencing the judges. The confession has now further established the role played by his uncle Sreeramulu in striking a bail deal. ACB would like to question him and mark the extent of his participation in this deal.

A Hyderabad-based realtor Ravi Surya Prakash Babu was the first to reveal Mr Sreeramulu’s role in the deal. The realtor, now arrested by ACB reportedly struck a deal with Sreeramulu and had unsuccessfully attempted to influence CBI court judge Pattabhi Rama Rao through two other judges Lakshmi Narasimha Rao and Prabhakar Rao.

CONFESSIONS OF A REDDY INSIDER
* n On 21/4/2012 in the evening my uncle B. Sreeramulu, MLA called me and informed me that one Sr R. Suryaprakash Babu, R/O Hyderabad knows some judges in Hyderabad and he is ready to help in the manner of securing bail to Sri Gali Janardhan Reddy

* On 9/5/2012 Sri Gali Somashekara Reddy informed me ...for managing the CBI judge Sri T. Pattabhi Rama Rao for granting bail, Yadagiri Rao (the alleged intermediary) demanded Rs 20 crore in all — Rs 5 crores for Sri T. Pattabhi Rama Rao, Judge, Rs 5 crore to Sri Chalapathi Rao, a retd Judge, Rs 5 crore to himself, and Rs 5 crore towards High Court expenditure

* On 10/5/2012 Mr Somashekara informed me that he would arrange for Rs 5 crore by disposing gold ingots at Hyderabad through a gold merchant of Bellary

Uttar Pradesh "farmer" with Rs 8, 500 income per month purchased ore-rich land for Rs 1.80 crore in Bellary!

A UP farmer with Rs 8, 500 income per month purchased ore-rich land for Rs 1.80 crore in Bellary!

By Shivakumar G Malagi

Bellary, July 17, 2012:

 All illegalities committed for exploiting rich iron ore wealth in this district during the period of Reddy ministers are getting exposed one after another. Latest exposure is of a fake farmer from Bharuva village in Sohawal taluka in Faizabad district in Uttar Pradesh.

Claiming himself as a farmer in UP; Mr Kesari Prasad Yadav had purchased 14.59 acres of ore-rich land in Ramghad village in Sandur taluk of district for consideration of Rs 1.80 crore on August 2009 producing an uncertified income certificate issued by Tahasildhar of Sahawal taluka in UP showing monthly income of Rs 8,500 per month and aggregated annual income of Rs 1.02 lakh to fit himself within the provisions of Karnataka Land Reforms Act 1964. The section 79B of the Act prohibits a person having non-agriculture income of more than two-lakhs from holding an agriculture land.

“How a person having a monthly income of Rs 8,500 can afford to purchase a property of Rs 1.80 crore is unexplained”, said deputy commissioner Amlan Aditya Biswas in his order cancelling the purchase of land by Mr Yadav. 

In spite of providing numerous opportunities, Mr Yadava had remained absent before the court of Deputy Commissioner nor his advocates provided proof of his existence nor have filed any written arguments.  

In his order, DC Biswas stated, “This clearly proves that money used in the purchase of land is from non-agriculture source only. Further, to be able to have Rs 1.80 core disposable income, Mr Yadav had to have an annual income of Rs 2 lakh for 90 years, assuming his entire income is savings. Alternatively, given his stated annual income of Rs 1.02 lakh, he would have to live for 176.47 years to be able to pay the sum of Rs 1.80 crore”. As per the records, Yadav is 55 year old.

Highly placed sources said that Mr Yadav is a bodyguard to a Uttarkhand based energy industrialist who made friendship with Bellary-based powerful politician during latter’s visit to Haridwar and expressed his willingness to invest in mining and wanted Bellary politician’s support for a big price. After financial loss in energy sector, Uttarkhan industrialist had ventured into mining and had appointed his bodyguard Mr Yadav as his front man in Bellary to extract iron ore illegally from this Ramghad land with the support of Bellary strongman. 

As per the century-old records of Sandur Princely state, a bunglow and garden situated in 14.59 acre land and no survey numbers assigned to land. However, said property rights have been confirmed in the name of Good Shepherd Convent. 

But, here, the Good Shepherd Convent had not declared having possession of this agriculture land and obtained permission to retain ownership as it was mandatory for a non-agriculture person or institution after commencement of the Amended Act of Land Reforms from April 1974. Hence, here, Lady Superior, Good Shepherd Convent held these lands in violation of Land Reforms Act and has sold it Mr Yadav in violation of the same Act.

Hence, DC Biswas has set aside the land transactions and ordered to take possession of the land forthwith and make changes in the name of Government of Karnataka. 

Can Sriramulu do a Jagan in Karnataka?

By Shivakumar G Malagi

July 23, 2012, Bellary

Cap:  Only the portrait of Sriramulu is erected in Bellary inviting for mass marriage programme to be held on July 27, 2012 coincides with Varamahalakshmi pooja. Very first time, Sushma Swaraj potrait is missing in the portraits erected across Bellary 

On April 24 at Basavakalyana in Bidar, birthplace of12^th century revolutionary and prophet of “Veerashaivas” Sri Basaveshwara; Valmiki community strongman and once-powerful Reddy mine barons’ confidante Boya Sriramulu predicted that BJP-led state government will fall on June 17 when his padayatra reaches state-capital Bengaluru after passing through 920 km in 52 days.

 Independent MLA from Bellary (ST) assembly segment has claimed that more than 30 MLA would join on the concluding day of his padayatra while kick starting it with a big bang claiming to draw the attention of State and Central governments towards drought and backwardness of northern Karnataka region.

He also claimed that his mentor Gali Janardhan Reddy, imprisoned at Parappana Agrahara central prison in illegal mining case would join his padayatra after securing bail from the court.

On contrary to his claims; soon after launching his marathon walk, former health minister Mr Sriramulu started witnessing one after another debacle for his mentor Gali Janardhan Reddy, imprisoned at Parappana Agrahara central prison in illegal mining case and other key players of his team.

Repeated dismissal of bail pleas of Mr Janardhan Reddy in both Karnataka and Andhra Pradesh courts; intensified investigation by the CBI into Reddys mining deals, entry of Enforcement Directorate, Karnataka High Court’s order to set aside the election of his sister turned Bellary Lok Sabha member J Shantha for alleged irregularities in votes counting and more fatal blow to Reddys camp has come when the CBI unearthed “cash for bail” scam in Hyderabad.

 With the handing over this scam to Andhra Pradesh Anti-Corruption Bureau by the AP High Court for further enquiry; top sources say that arrest of Janardhan Reddy’s elder brother and Bellary City MLA G Somashekhar Reddy and Sriramulu’s nephew T H Suresh Babu is imminent as they allegedly played key role in bribing Hyderabad CBI court judge Pattabhi Ramarao to secure bail for Janardhan Reddy. Although, Mr Sriramulu refute this scam calling it a “political conspiracy” but close sources say that it has reportedly weakened his morale, since it lessened the chances of his mentor Janardhan Reddy securing bail at the earliest.

This series setback has certainly cast dark cloud on the launching of his Badava Shramika Raitha (BSR) Congress Party when it reached Bengaluru on June 17 covering 10 districts and 50 assembly segments.

At this critical hour, a silver ray of hope came from the side of Andhra Pradesh when Reddy mine barons alleged business ally and Kadapa MP 39-year old Y S Jagan Mohan Reddy led YSR Congress Party swept in AP by-elections.

 Loyalists of Janardhan Reddy and Sriramulu are apparently jubilant after landslide victory for Jagan in the by-elections for 18 assembly seats in Andhra Pradesh, with a renewed confidence to repeat this impressive performance in Karnataka in next Assembly elections claiming that people would largely ignore charges on mining scam tainted Reddy brothers and vote for Mr Sriramulu-led new party.

When the sympathy triggered among people by the arrest of Kadapa MP Y.S. Jaganmohan Reddy translated into votes and seats for his YSR Congress Party (YSRCP) when it swept 15 out of the 18 Assembly seats and the lone Nellore Lok Sabha constituency in Andhra Pradesh; Reddy-Sriramulu loyalists started talking of repeating similar verdict in Karnataka too.

“We are very happy with the performance of YSRCP. We are proud of Jagan for this achievement. We too all greatly blessed by his father late YS Rajashekhar Reddy. This verdict showed that the people believed him to be innocent. It also proved that people will not let you down if you work hard for their welfare”, asserted Bellary City MLA Gali Somashekhar Reddy.

KMF chairman Mr Reddy is confident enough that similar verdict will be repeated in  next Assembly elections by Sriramulu who is emerging to be a tallest leader of backward and suppressed classes in State after completing his 920 km padayatra  from Bidar to Bengaluru.

But, ground reality is not so conducive for Reddy mine barons and political scenario in Karnataka is entirely different from neighbouring AP.

YS Jagan has meticulously filled the vacuum for a third force acceptable across all regions in Andhra Pradesh after Congress and Telugu Desam Party, whereas in Karnataka, already there are three politically active  major forces-Congress, BJP and JD(S) with different identities.

Hence, at this juncture, scope for a fourth-force led by Sriramulu is still uncertain and his Valmiki community is numerically in fourth position and not a politically decisive in majority of constituencies. His party, encashing mainly on Valmiki-Nayakas can only be a good combination either with dominant Vokkalingas in southern Karnataka and Lingayats in north Karnataka to deliver an impressive verdict, but cannot go alone in more than ten-seats.

Apparently, Sreeramulu is playing AP politics in Karnataka. Emulating Jagan, Sriramulu had undertaken padayatra from Bidar to Bangalore to drum up support for his new party. Jagan went on a tour cum padayatra in AP to express his gratitude to the love and affection shown by the people towards his father YSR.

Political experts are quite skeptical about Sreeramulu doing it in Karnataka what Jagan did in AP. But to emerge as champion of backward or suppress classes, they say Sreeramulu still has a long way to go. Former Chief Minister D. Devaraj Urs, who is known as the great champion of backward classes took years of hard work to earn that recognition. Even his close associates admit that one Padayatra and mega rally definitely won't take Sreeramulu to that level. He just needs to be patient and really work hard to get there.

“The basic mentality of Vokkaligas or Lingayats, who are considered politically dominant upper caste, would not allow them to accept the leadership of a Valmiki leader like Sriramulu. Situation would not have been the same if the Janardhan Reddy was in active politics. He would have managed upper caste leaders to work under his leadership, but this cannot be possible for Sriramulu. Here, you cannot compare this leadership question with backward leader and former CM Devraj Urs. Then, Congress party was stood behind Urs; whereas there is no patronage of a national party for Sriramulu at this time”, remarked a Lingayat leader loyal to Siramulu.

As often claimed by him, Sriramulu’s party is focused more on North Karnataka that too on few districts surrounding Bellary, so there is a dearth of state-wide acceptability for his party. More importantly, neither he nor his mentor Janardhan Reddy had a long-legacy of politics, but carry a heavy baggage of illegal mining scam, haunted by a series of investigations.

Mining scam tainted Janardhan Reddy being behind bars may not fetch sympathy for Sriramulu, as he widely believed as “poster boy” for Reddy mine barons whose acceptability among relatively rationale voters in Karnataka is diminishing with broad exposure of mining scam.

“Sriramulu’s frequent visits to jail to meet Reddy signale that his is still under the shadow of Reddy and can not emerge on his own to become a champion of backward communities, but just a poster boy for Reddy mine barons”, remarked a expert.

On contrary to this, with its resounding victory, Jagan's party proved that its primary claim to YSR's legacy and promise of a 'suvarna rajyam' (golden rule) scored heavily with the voters, especially women, that thronged road shows addressed by his mother Y.S. Vijayamma and sister Sharmila, had all the trappings of a sympathy wave waiting to happen.

Voters seem to have largely ignored the corruption charges against Jagan, which formed a major part of the campaign plank of both the Congress and Telugu Desam Party. Also, he was largely helped by the polarization of Reddy votes irrespective of the regions and prominent Reddy community leaders’ rule the roost in districts, identified with him deserting party affiliations, while, Catholic Christians and Dalits in every region rallied behind him.

Moreover, experts also argue that there is vast difference to politics of AP and Karnataka. Jagan enjoyed huge sympathy factor triggered by the untimely demise of YSR and his subsequent arrest. But for Sriramulu, it is not the same here. If BSR Congress is assuming that Janardahan Reddy's stint in Jail will work in their favour in the 2013 assembly election or even earlier, they are in for a big trouble. Voters in Karnataka are well aware that Janardhan Reddy of their clout in Bellary and charges against them in illegal mining. So it's not easy task for them to influence the voters. But certainly, BSR Congress cannot be written off.

There is all the likelihood of YSR Congress and BSR Congress will eventually merge to fight for a common cause both in Karnataka and Andhra Pradesh, sources said.

Though Sriramulu originally christened the party after his name, as a political Strategy, he later renamed the party as Badavaru (poor), Shramikaru (working class) and Raitharu (BSR) to portray himself as the champion of Backward and suppressed Classes.  He declared that he will be fielding candidates in all 224 Assembly segments of the state and added that he was not interested in big leaders joining the party. “I don’t want them. What shall I do with big leaders? I would rather go to the common man,’’ he said.

Sources said that officials, including top brass KAS and KPS officers who had benefited from Sriramulu during his tenure as minister in the BJP government, are tacitly supporting Sriramulu. It would be no surprise if a few of plunge into politics in the next Assembly polls, sources added.

Elder Brother Karunakar Reddy distanced from siblings:

G. Karunakara Reddy, Harpanahalli MLA, and former Minister, has asked B. Sriramulu, BSR party leader and Independent MLA, not to be overconfident. He was referring to a statement by Mr. Sriramulu during his padayatra in Harpanahalli some days ago that he would field an ordinary worker of his party against Mr. Reddy in the next elections. Mr. Reddy said the people of Harpanahalli would teach Mr. Sriramulu a lesson if he tried to challenge him in Harpanahalli Assembly segment. He made it clear that he will not quit BJP to join his siblings and will contest from Harapanahalli constituency in the coming elections too.

Highlights of BSR Party Manifesto:

BSR Party announced a series of populist measures including one on providing rice at Rs. 2 per kg, if his party comes to power in the 2013 Assembly polls.

The highlights of his manifesto are the announcement of a minimum support price for agricultural produce the day cultivation begins, regularization of all unauthorized cultivation on government land and issue of khatas to farmers. He even plans to provide free education to poor children including professional courses like medical and engineering.

 Sriramulu to launch another padayatra

Independent MLA and founder of BSR Congress Party B Sreeramulu on Thursday said that he would again embark upon a padayatra in the districts in river Cauvery basin and that his padayatra would culminate at Kanakapura in Ramnanagar district starting from Karwar. Hihe second padayatra would cover Mysore, Malnad and coastal regions.

Besides, he announced to stage a 10-day hunger strike, protesting the BJP government’s inaction in desilting Tungabhadra reservoir. The fast would be organised at the Tungabhadra dam and about a lakh people would participate in it, he said.

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First time for a political reason “Thayee” Sushma Swaraj portrait is not erected in Bellary pooja:

In 1999 when leader of opposition in Lok Sabha Sushma Swaraj contested against AICC chief Sonia Gandhi and promised people here that she will take participation in Varamahalakshmi festival every year in the town irrespective of year election results and keeping up her promise, Ms Swaraj continuously took participation except once a couple of years ago when her father in law passed away. But, during the last year in 2011 festival, for the first time, she stayed away from the festival after Lokayukta Santosh Hegde’s report indicted Reddy mine barons for illegal mining and she disowned Reddys political makeover.  Then, BJP national president Nitin Gadkari attended the festival. However, with the breakup of Reddys with BJP, portrait of Ms Swaraj is not seen in any of the hoardings erected across Bellary town inviting for mass marriages to be conducted by Sriramulu, coinciding with Varamahalakshmi festival every year. Earlier, portraits of Ms Swaraj who Reddys and Sriramulu called as “thayee” (mother) used to erected at every nook and corner of the town during festival

Recently during his padayatra at Yelahanka, Sriramulu said media persons that he and Reddy brothers (Janardhana Reddy, Karunakara Reddy and Somashekara Reddy) treated the leader of the opposition in Lok Sabha Sushma Swaraj as their mother. However, they (Sriramulu and Reddy brothers) were not treated as her children.

“When I went to New Delhi to meet her, she turned her back on me. We respected her, but now there is no question of going back to her,” Sriramulu said.

We are legally correct and co-operate with CBI: JSW CEO

 Shivakumar G Malagi

 May 11: Making a strong claim that transactions of the country’s largest steel manufacturer and world’s fastest growing steel company-Sajjan Jindal-led JSW Steel Ltd are “clean and legally correct”; company’s CEO Dr Vinod Nowal welcomed the Supreme Court order directing the Central Bureau of Investigation to probe alleged mining bribery linkage between the company and former Chief Minister B S Yeddyurappa.

“Absolutely, there is no illegal on our side. But, we respect the court order and will co-operate with investigating agency and appear before it to put our point there when it calls us”, Dr Nowal told Deccan Chronicle.

It is alleged that donations made to former chief minister B S Yeddyurappa's family run Prerana Trust and land transactions were an underhand attempt on part of JSW Steel Ltd to obtain undue favours from the then State government.

“In reality, there was no proposal from our side pending before then Chief Minister to obtain undue favours.  It is amply clear that JSW group has, at all times, fully complied with all applicable laws and regulations in their true letter and spirit and has taken all due and reasonable care towards the fulfillment of their statutory, corporate and social responsibilities”, he asserted.

Explaining that Mr Yeddyurappa’s family run Prerana Educational Trust is not the only trust received donations from the Jindal Group companies; Mr Nowal stated JSW Group spends about 2 per cent of its profits annually for corporate social responsibility (CSR) activities.

As part of this CSR, Dr Nowal said, Jindal Group has paid donations to Akshya Patra Foundation, ISKON, Hampi Foundation, Balaji Charitable Trust and many others. “Donation to an educational trust run by the family of former chief minister was made as per norms for construction of an auditorium, which was to be named after the company founder chairman O P Jindal, after satisfying that institutions are professionally managed”, he remarked.

Regarding purchase of one-acre land at Rachenahalli for Rs 20 crore by the JSW-subsidiary South West Mining Pvt Ltd from close family members of Mr Yeddyurappa; Mr Nowal said, land was acquired to set up an office along with guest house.

“Land was purchased following due process of law, assessment of the market value, duly registered after payment of stamp duty and obtained mutation thereof. Any suspicion raised in this matter is frivolous”, he remarked.

Talking about company's procurement of iron ore in the state, he said that "each and every tonne of iron ore bought by the JSW Steel is against valid purchase orders and supplies were accompanied by requisite documents".

Dr Nowal added that the JSW Steel has accounted for entire procurement and its usage and has paid the sale consideration for the same, including taxes and royalties. "If the mining company or transporter or the agency which issues permits had not adhered to applicable law, then JSW Steel cannot be held liable or responsible in any manner. If there are violations and illegal mining, it is for the respective designated agencies/authorities to take appropriate action against the defaulting companies," he said.

Dr Nowal said, indeed, JSW has been an aggrieved party in Karnataka as it has not been allocated any iron ore mine in the state despite the company being the largest investor with an investment of over Rs 40,000 crore in steel, power and industrial gases sectors."JSW Steel, in fact, is an aggrieved party as despite making such huge investments based on assurances, it is still waiting to get mining leases for over 15 years," he said.

JSW seeks opinion of National Board of Wildlife to expand power plant

 Shivakumar G Malagi

May 15: In one another serious threat to endangered species at Daroji Bear Sanctuary in this iron ore rich district from ever growing industrial plants surrounding the sanctuary; the country’s largest steel manufacturer- JSW Steel’s subsidiary JSW Energy Limited has sought to expand its power plant capacity from 860 MW to 1520 MW within 10-km radius of the bear sanctuary.

JSW Energy Ltd executive director R R Pillai submitted a proposal to the officer in charge of the Daroji Bear Sanctuary on December 19 last year seeking to process its application to Standing Committee of National Board of Wildlife chaired by Prime Minister Manmohan Singh in order obtain Environmental Clearance for expansion project. The guidelines of Ministry of Environment and Forests issued on 19^th August 2010 stipulates that projects coming within 10 km from the boundary of national park/sanctuary has to obtain recommendations of the Standing Committee of National Board.

Seeking a positive report for expansion project; JSW Energy Ltd said in application that existing power plant boundary is within 10 km from the Daroji bear sanctuary, however, expansion is being done within the existing plant premises, no additional land is required and no divination of Law area belonging to bear sanctuary is proposed.

Besides, the company asserted that expansion will not hamper the migration route of the sloth bear in the sanctuary and has no effect on the habitat of the wildlife, besides there will be insignificant effect of air and noise pollution from the power plant operations.

When contacted, Assistant Conservator of Forests, (Wildlife), Daroji sanctuary M N Kiran told Deccan Chronicle that company’s application will be processed this week furnishing specific opinions on relevant issues involved in this matter.

Once this application is processed; sources said that an expert team headed by Mr Anil Kumble, vice-chairman of Karnataka State Wildlife Board is likely to conduct spot inspect before forwarding a report to the Chief Minister who is also the chairman of the State Wildlife Board. “Chief Minister’s decision is crucial in deciding the fate of this project”, said a source.     

Sources said that expansion of power Plant is very vital for steel giant JSW Steels to meet its home-grown electricity demand in concurrence to its steel production expansion plan from 10 million metric tone per year to 16 million metric tone by 2013.

In reality, this is the second power plant project seeking Environmental Clearance for expansion project within 10-km surrounding of the sanctuary. Expansion plans of Bellary Thermal Power Station operated by the Karnataka Power Corporation Limited in Kudathini village of district has evoked conflict last year with environmentalists demanding Union government for withdrawal of Environment Clearance for the unit – 3 which, they claimed obtained on false and fabricated data.

BTPS is currently operating with a total capacity of 1000 MW with two units, each having capacity of producing 500 MW. Subsequently, KPCL is now planning expansion of an additional unit-3 in BTPS with a capacity of 600 MW.

Undeterred industrial growth surrounding the sanctuary has worried nature lovers in district as this sanctuary is home to more than 120 Sloth Bears, healthy population of Leopards, Hyenas, Jackals, Foxes, Wild Boars, Porcupines, Pangolins, Star Tortoises, Monitor Lizards, Mongooses, Pea Fowls, Partridges, Painted Spur fowls, Quails etc. About 200 species of birds and 50 species of butterflies have also been identified and documented in this sanctuary in a preliminary survey. It is also home to the critically endangered Yellow Throated Bulbul. Efforts are on to rediscover and document the Jerdon’s Courser and Rusty spotted cat which is presumed to be existing in and around this sanctuary.