FRONT PAGE | Monday, April 6, 2009 | Email | Print | 
Ola puts Govt to poll-eve embarrassment
Durbar Ganguly | New Delhi
Mines Minister Sis Ram Ola has winked at the court judgement, transferred department Secretary Shantanu Consul, ignored suggestion of the nation’s Cabinet Secretary, paid no heed to his Cabinet colleague Ram Vilas Paswan’s claim that the national mineral company NMDC should have the mining right at Ramandurg and bulldozed his way through in granting mining right to the PSU trading company, MMTC, which has set up JV with a private company, India Bulls, with the steel czar LN Mittal as the ultimate beneficiary. And all these have been done when the model code of conduct has been in force and the Government led by Manmohan Singh is just a caretaker one.
But why has the veteran Congress Minister thrown all propriety to the winds? The question looks a frivolous one if one takes a look at the Ramandurg iron ore mine in Karnataka. The 1,503 hectares of Ramandurg contain an estimated minimum Rs 20,000 crore worth finest iron ore. For such a treasure trove, one can go to any length. This is what Ola, the veteran Congress Minister has done.
Ola claims to have done nothing wrong. After all, the Minister had instructed the mine to be reserved for MMTC, a Government-owned company. It is purely a decision within the Government, maintained Ola. He did not care to know if MMTC would finally hand over the precious iron ore to the global steel czar for his enrichment. When Mines Secretary Shantanu Consul did not play ball, he had to make way for Santha Sheela Nair, and move over to Nair’s Water Resources department. Consul’s fault was playing as per the rule book and not towing the Minister’s line. The latter obliged the Minister after taking over the new charge.
Meanwhile, the unprecedented step of the Mines Minister provoked Steel Minister Ram Vilas Paswan to seek the Prime Minister’s intervention. In his letter, Paswan pointed out that the national mineral company NMDC had already prospected the said area, way back in 1971-73. The mining PSU was the first and sole applicant in applying for mining lease for 4.5 sq km out of a total area of 16.8 sq km. However, when the Karnataka Government de-reserved the entire area in the State’s Bellary district, NMDC moved the Karnataka High Court. The single judge bench in its order in November 2006 directed the State to consider the PSU’s application for the said area in the Ramandurg mines. The judgement was subsequently upheld by a division bench of the high court. The other claimant to the iron ore reserve was the Kudremukh Iron Ore Company Limited (KIOCL), another PSU. Paswan wrote, “KIOCL is fighting for its survival and allotment of Ramandurg mines are crucial for its survival.” Even the matter was taken up by the Steel Ministry at the Secretary level.
Consul, the Mines Secretary till March 22, had to vacate his post due to his insistence on referring the sub judice matter to the legal department before issuing any directive. He even had brought the matter to the notice of Cabinet Secretary KM Chandrasekhar. Chandrasekhar, too, had endorsed Consul’s stand. Still Consul had since been shifted to the Water Resources department.
While Ola has been taking refuge behind the argument that this was a matter between the Government and one of its own PSU, the fact remains that another PSU, the iron ore mineral giant NMDC, has served a legal notice on the Mines Ministry. NMDC stated that the Mines Ministry directive would amount to contempt of court. In fact, the same violates the model code of conduct also. But will the Election Commission take note?
Even Karnataka has opposed the move and questioned the wisdom of granting MMTC the said rights. The State argued that MMTC 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. Since NMDC is now venturing into steel manufacturing as well, the PSU should have been the non-controversial choice for the mine. Why did Ola ignore the strong case of one PSU in favour of MMTC? Could it be that there is more behind the curious hurry of the Congress Minister?
The point to note is that MMTC has already tied up with India Bulls-promoted joint venture firm which in turn has a curious JV with steel czar LN Mittal. Interestingly, MMTC comes under the Ministry of Commerce. Commerce Minister Kamal Nath, another Congress stalwart, shares a close rapport with the steel czar. Those in the know of the developments feel that the entire exercise of Ola was to help Mittal receive uninterrupted supply of finest iron ore. The alleged connections are too serious to be ignored. This needs to be investigated before precious national resource is handed over on a platter for the benefit of a private firm.
If the caretaker Government does not take immediate corrective measures, the issue might turn into a major election-eve embarrassment for the Congress. More so since Ola’s close proximity with the Congress president and her son can easily be established. During the recent Rajasthan Assembly election, Ola’s son Brijender Singh Ola contested and was elected from the Jhunjhunu constituency. He is no ordinary MLA — his constituency saw Congress president Sonia Gandhi and her son Rahul Gandhi campaigning for votes. That Ola is a modest Congressman with the right connections cannot be denied. Sometimes connections may prove embarrassing. Ramandurg is one such skeleton waiting to be exposed in the Congress cupboard, say Karnataka politicians.
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