From being an obscure district, languishing at the bottom of the human development index for Karnataka, Bellary today is the most talked about region in Karnataka after Bangalore. The transformation of the city happened due to increased iron ore mining activities in Bellary-Hospet belt post the year 2000.
The huge cash flow through iron ore export has only filled the wallets of mine owners? in these years but not of a common man. Bellary still has high infant mortality rates, low sex ratio, a high HIV prevalence and low literacy rate hovering below 50%.
Report Card
Once Bellary was big on the small town stock brokerage map. Unlike any other district headquarters in Karnataka, Bellary city houses the branch offices of almost every big securities brokerage firm in the country. It was estimated that around 4,000 retail investors and 40-50 high net worth investors from the region have pumped in their money in stock markets when Bellary iron ore industry was making bumper profits. But due to economic slowdown, the cash flow has declined in the past one year due to reduced mining activities in Bellary.
The meltdown has seen a cut in steel production across the world. In Bellary?s own backyard, Jindal Steel has cut production and 25 of the 40 small and medium steel producers are shut.
Adding to woes, the government has imposed ban on patta lands that prevented the small land owners from selling iron ore mined from their private lands. As a result of ban on mining in patta lands and huge production cuts imposed in licensed mining sites following reduced export orders, around four-lakh labourers are struggling without full-time jobs. It was reportedly said that several prospective investors, who intended to launch their steel plant projects in Bellary, are rethinking now due to economic slowdown.
Congress supremo Sonia Gandhi won from Bellary in 1999, but today the constituency is completely under the control of BJP due to the money power of the local mining lords Reddy brothers and his associate Sreeramulu. Reddy brothers? Obulapuram mining firm won bumper contracts from China making the Reddy associates multi millionaires overnight.
The present Congress candidate NY Hanumanthappa (NYH), former chief justice of the Orissa High Court hasplayed a distinctive role in the UPA government to enact legislation for tribal people and the Right to Information Act. NYH is trying to cash in on the people?s strong resentment towards the BJP government?s blanket ban on mining activities on patta land. Many earned their livelihood by selling ore stones in their agriculture lands to big mine owners. Now they are left with no income.
Pre delimitation
Total electors 4.23 lakh
Post delimitation
Total electors 14.76 lakh
Break up of the constituency Hadagalli, Hagaribommanahalli, Vijayanagara, Kampli, Bellary, Bellary City, Sandur, Kudligi and Siruguppa
Name of candidates B Shantha (BJP), NY Hanumanthappa (Congress)
Size of community votes SC and ST community plays a major role in the constituency with 25% of total voters followed by 18% of Lingayat community voters and 13% of Muslim voters.
My voice
Noor Ahamed President, Bellary-Hospet Mine Owners Association
Bellary contributes around 25% of the country?s iron ore export. However, since September 2008 when the global economic meltdown rocked the economy, the iron ore price that touched $150 per tonne at peak demand in the international market, came down to $50 per tonne. The total iron ore production in Bellary mines declined by 20% in 2008-09 from 40 million tones of iron ore per annum, and is expected to tumble further by 30-35% in 2009-10. The region is waiting for the the government to withdraw 5% export duty imposed on iron ore lumps and reduction of rail freight charges by at least 50% from the current level of Rs 1,300 per tonne, enabling the mining companies to function and maintain the job opportunities in the region.
Infrastructure development
Roads
Bellary?s roads are constantly in need of repair as heavy trucks ply between the mines and the Mangalore port. The government has cleared a ring road project last year around the city to avoid mining truckers entering the city.
Water
The Tungabhadra reservoir is the only major source for water in Bellary. Drinking water supply is not adequate in several parts of Bellary and accumulation of silt over the years has brought down the storage capacity from 133 tmcft to about 104 tmcft. Government?s move to setting up several steel plant projects has been threatening the farmers as the water may be diverted for industrial purpose, affecting agriculture.
Airport
The BJP-led state government has proposed to set up a greenfield airport in Bellary covering 1,000 acres of farm lands in Siriwar and Chaganur villages.
According to Infrastructure Development Department of Karnataka, the greenfield airport has been planned as the Airports Authority cannot take up expansion of the old airstrip at the city. But the proposal has been witnessing protests from farmers and opposition parties like JD (S) against the government acquiring farm lands for the airport project.
Industrial measures
The constituency houses several medium and large scale integrated steel plants including Sajjan Jindal-promoted JSW Steels and sponge iron plants, all depending on locally available iron ore raw material. Recently the government has sanctioned for another Rs 6,151 crore integrated steel plant to be promoted by BMM Ispat.