State to suspend mining

Hyderabad, Nov. 24: The state government on Tuesday decided to stop mining activity in the controversial Obulapuram iron ore mines and transportation of the mined ore.

The decision would be a major blow to the controversial Karnataka minister, Mr Gali Janardhan Reddy, who runs the Obulapuram Mining Company.

Further, the government decided to take up a fresh survey to demarcate the boundaries of the mines in the wake of the allegations that OMC has been carrying on illegal mining. For this, mining activity in all the six mines will be stopped.

Of the six mines involved in the controversy, OMC owns four and controls one while the remaining one belongs to Mr Reddy’s rival firm, the Bellary Iron Ore Private limited.

An emergency meeting held by the Chief Minister, Mr K. Rosaiah, on Tuesday evening also sought legal opinion over the government’s decisions. The forest minister, Mr P. Ramachandra Reddy, the mines minister, Mr B. Srinivasa Reddy, and other officials were present at the meeting.

Though the state government initially decided to wait for a word from the Supreme Court, the Central Empowered Committee of SC goaded it to act by submitting a copy of its report to the state chief secretary, Mr P. Ramakanth Reddy advising him to act .

Sources close to the CM said officials urged him to take action in view of the CEC recommendations and the indictment of OMC by the three-member committee of forest officials.

The committee said in its 18-page report that OMC had violated forest rules while carrying out mining and suggested a comprehensive survey for demarcation of boundaries afresh, sources said. Sources said the CM too favoured action to project his clean image since he was upset over the TD dragging his name also into the controversy though he had ordered a CBI probe.