Minister Ola overruled all to reserve mines

But even as the order to reserve the Ramandurg mines in Bellary district remains to be notified,state-owned mining giant National Mineral Development Corporation (NMDC) has served a legal notice on the mines ministry,stating that this would amount to contempt of court and violation of the model code of conduct. Repeated attempts to meet Ola failed. He did not answer the phone calls either. Consul,when contacted,refused to comment.

In March 2003,the Karnataka government had invited expressions of interest for mining lease from prospective players. But several applicants including NMDC had applied for mining leases even before the EoI was floated. NMDC,which had way back in 1971-73 carried out detailed exploration and submitted a feasibility report to Karnataka,filed a petition in the High Court,which in April 2003 ordered the state not to grant the lease to any third party.

Many other companies too had filed writ appeals against the state notification. A division bench later upheld this,dismissed all writ appeals and asked the state not to treat the earlier applications as premature and instead give them preferential rights over others.

While Ola,through repeated notes,wanted his

ministry to issue a notification in favour of MMTC,Consul sought to go by the rulebook. He said the ministry must seek the opinion of the legislative department. But Ola was insistent that the notification be

issued at once.

Karnataka itself squarely opposed the move and questioned the wisdom of granting MMTC the said rights,arguing it was not a miner but a mere trading company. Moreover,the state’s new mineral policy mandates that value-adders be given preference in granting of prospecting licence for mines within its boundaries.

Consul’s act of referring the relevant files with background to the legislative department incensed the minister,who held the action “willful insubordination.” He ordered initiation of disciplinary proceedings against the concerned director. But,defending the director,Consul maintained that “the director is a fine officer and I am sure he would never suppress the Minister of Mines’ order.”

Sensing the matter was turning nasty,Consul sought Cabinet secretary K M Chandrasekhar’s advice including his suggestion seeking the advice of the legislative department. The Cabinet secretary also endorsed Consul’s stand. But Consul has since been shifted to the water resources department. Santha Sheela Nair,secretary in the water resources department,took over as mines secretary.

NMDC woke up to the developments and sent a legal notice through its lawyers K Raghavacharyulu & Associates,reminding the government of the Karnataka High Court order. The notice pointed out that the Central government could notify reserving certain areas with a view to conserving iron ore but only after due consultation with the state.

It further pointed to sub-section 1(17) (A) of the MMDR Act that does not authorise or empower the central government to issue any such notification in favour or “any trading government company”.