Orissa, Jharkhand miners cautious after Janardhana Reddy's arrest

Owners of private iron ore miners in mineral-rich states of Jharkhand and Orissa are closely watching events in Karnataka following the arrest of mining baron Gali Janardhana Reddy. 

Though not on the scale of Karnataka, both states have seen their share of illegal mining, prompting a crackdown by authorities. 

The two states, which account for about a third of the total iron ore mined in the country, have seen a drop in ore production in the recent past mostly due to strict anti-pollution measures and checks on the background of mining entities, according to government officials. 

They said the amount was difficult to quantify because many of the mines were small. India produces about 200 million tonnes of ore which are widely used by the steel industry. 

Ram Swarup Rungta, owner of iron ore mines at Noamundi in Chaibasa, Jharkhand, says there is no organised illegal mining in the state on the scale of Karnataka. 

“The amount of royalty to be paid to the government is very nominal. Hence, miners follow rules and regulations in the state. Some people may be involved in illegal mining in Jharkhand, but it is on a very small scale,” he added. 

Rungta, who has diversified into cement, owns companies with a claimed revenue of about 2,000 crore. 

In Orissa, the government cracked down on illegal mining after the central empowered committee of theSupreme Court detected the widespread prevalence of illegal mining. 

“Mining activities were going on in a large number of mines in Orissa without requisite approvals under the Forest (Conservation) Act, 1980, Environmental Clearances, and the Air and Water Acts. The mining activities also exceeded the production limit as approved under the Mining Plans,” said the report, which was submitted to the apex court in April this year. 

Following the report, the police arrested about 340 people for alleged involvement in illegal mining, with the mining district of Keonjhar accounting for 335 arrests. 

“We have already registered 130 cases, out of which more than 100 have been chargesheeted. Now illegal mining has come down, leading to a sharp increase in mining royalty to the state coffer,” said a top police official.