The mines ministry has shelved the proposal to allocate the prized Ramandurg iron ore mines to state-run trading behemoth Minerals and Metals Trading Corporation (MMTC), putting a lid on the controversy that engulfed the then mines minister Sis Ram Ola a few months ago. Stiff opposition from the Prime Minister’s Office and the steel ministry is said to be one of the reasons behind the decision.

Ola had made hectic efforts to secure the Ramandurg mines for the MMTC, which is under the commerce ministry — a move that was firmly opposed by his then secretary Shantanu Consul.

“The Karnataka government was not in favour of granting the leases to the MMTC as several court cases were pending on it, while the steel ministry’s PSUs National Mineral Development Corporation (NMDC) and Kudremukh Iron Ore Company Limited also objected to the proposal to reserve Ramandurg mines for the MMTC. We took up the matter with the administrative ministries of the PSUs and after taking into account all the issues, we have decided not to process the reservation case for the present,” a mines ministry official said.

The controversy on reserving the mines for MMTC had kicked up a ruckus as Ola as a minister in the previous UPA government had decided in September 2008 to approve the proposal of MMTC seeking allocation of 1503 hectares.

Ola understandably told the PMO that the Karnataka government was duly consulted and was told that the entire area had not been granted.

... contd.