Thousands of workers faced crisis after the mining scam
A view of iron ore mines at Obulapuram in Kadapa district. (Photo: DC)
Anantapur: Iron ore related industries, subsidiary units and transport trades suffered a serious crisis ever since the mining scam came to light five years ago. Thousands of workers traders, transport owners and management of subsidiary units are facing a terrible crisis due to heavy losses after mines were seized in Obulapuram.
The impact is still being seen in areas of both AP and Karnataka. The seizing of Obulapuram and other mining companies had an adverse impact on subsidiary units that were facing shortage of iron ore to run the units. An industrialist who established a large scale unit on the outskirts of D. Hirehal, lamented he was not in a position to clear monthly electricity bills or EMIs on the loans he took for establishing the unit. He criticised the government for not giving priority to the existing ancillary units or the victims.
K. Jabbar from Hospet had incurred losses after establishing a crushing unit near D. Hirehal in the district. “By the time we established the unit, Obulapuram mines were seized,” he said. He has shut down the unit and is looking into some other business. Transport industry also suffered a lot after many agencies incurred losses. A transport agent from Anantapur had purchased 12 tippers mainly for transportation of iron ore four years ago and had to dispose the vehicles incurring huge losses.
Apart from iron ore related trade, other business sectors in Rayalaseema and Karnataka areas are also affected. Real estate business was also hit with the iron ore scams and investors were getting poor value of lands in between Bellary, Anantapur and surrounding areas. A village revenue official from D. Hirehal said the situation was trouble-ridden since the last four years. The border dispute between Karnataka and AP of forest land is still on.
M. Dhananjaya from Hospet, who had lost his investment in trading noticed many of the small investors were cheated by middlemen and escaped soon after the OMC controversy began in Anantapur district. With the iron ore was illegally exported to China through ports of southern India by mining baron Gali Janardhan Reddy and his sister companies, the state government cancelled MoU between Brahamani Steels over establishing a steel factory in Kadapa district.
Thousands of acres were deserted after the government issued orders to take back land allotted to Gali JanardhanReddy's Brahmani Steels since two years. The district administration of Kadapa was offering 2000 acres of land in the industrial area of Kadapa to SAIL for establishment of steel industry.
But, charges against these companies are illegal movement of iron ore from mining yard without permits and without paying royalties, forest encroachment, mining lease violations, overloading of trucks and violation etc.
( Source : deccan chronicle )
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