The manner in which rail networks and ports in the south-west coast of India have been exploited for transporting illegally mined iron ore is a real eye opener. The damning Karnataka Lokayukta report, which has already claimed a chief minister, deals extensively on the subject and the details are shocking to say the least. The Lokayukta report computed that approximately 45.59 lakh MT of illicit iron ore was transported through our railways during the period 2006-07 to 2010-11. Illegal iron export through Belekeri port, a small port on the Karnataka coast close to Karwar, is estimated to be at 77.38 lakh MT. It is indeed a shame that authorities have not been able to check this rampant robbery of precious ore, which has resulted in great ecological damage in Bellary and the surrounding mineral rich regions.
The rail tracks have always been a major mode of iron ore transport from Karnataka to Goa. Two major rail destination in this regard are Tinaighat and Soverdem, and the Lokayukta report has found that there is no mechanism to verify the legality of iron ore received at rail stations. Dr UV Singh, who spearheaded the Lokayukta investigation under Justice Santosh Hegde, uncovered several cases of discrepancies with regard to consignments unloaded at Tinaighat and Soverdem railway stations and permits issued to consignors. This shows how inept the authorities have been on tackling this menace. Or is it that they turned a blind eye?
In fact, the report points towards Goa as a major piece of the mining puzzle. The state has numerous iron ore mines, and the minerals are exported through the various ports. The two most important ports in Goa are Mormugao and Panaji. Exports through Mormugao port are the highest in the country and a substantial portion of this ore is sourced from Karnataka. In Goa, iron ore of Karnataka origin is blended with that of Goan origin, to improve its iron content. Even the Lokayukta found it difficult to estimate the quantity of Karnataka origin iron ore exports through Mormugao and Panaji ports. The data obtained from the customs offices of these two ports had limitations with regard to identifying the state of origin. It was found that a large part of the manual shipping bills of Mormugao port were not available. Moreover, it was observed that the figures of iron ore exports of Karnataka origin, as depicted in the shipping bill data of both the ports, were grossly under-reported!
Dr UV Singh and his team visited customs and port authority offices at various ports and found several cases of under-invoicing in iron ore exports sales. A probe into this matter revealed that some exporters exported iron ore at sales rates that were considerably lower than prevailing international rates. The report found that there were 478 suspected cases of under-invoiced exports during the five years spanning 2006-10. The total under-invoiced portion of sales amounted to over R2,222.26 crore. Further, it was found that many exporters had a preferred consignee for under-invoiced exports. It is, hence, apparent that the authorities were operating hand in glove with those indulging in this theft, which was code named ?risk amount?.
The small port of Belekeri was another big port of concern. As reported by FE earlier, Belekeri is not equipped with coast guards for monitoring the movement of vessels, as in ports like Mangalore. There is no watch tower and other related infrastructure to keep track of any illegal activities in the port. In the months of April and May last year, 15.84 lakh MT of iron ore was exported through the Belekeri port, of which 11.59 lakh MT was illicit in nature. In 2009-10, 65 lakh MT of iron ore was exported through the port, of which 36.50 lakh MT was illegally routed. It is quite obvious there was no mechanism at these ports to check these Himalayan misdeeds.
The Centre has to now immediately devise ways and means by which it can curb this illegality that has been going on for years. The Lokayukta has thrown out a bucket of worms, and the Centre has to show some nerves of steel (or should we say iron ore) to fight this battle. This is too precious a battle to lose.
dj.hector@expressindia.com