HUBBALLI/BALLARI: The Rs 3,000 crore mining industry in the Ballari region that was hit severely by the Covid-induced lockdown has not restored fully, though it has been weeks since restrictions have been lifted. Mining companies have commenced operations, but not back to their capacity levels due to lack of labourers, who went to their hometowns during the lockdown.The industry even otherwise was on a low keel after the Supreme Court banned mining activities in 2011 and allowed only Grade A and B fields to start operations in 2015. But the mining activities were recovering when the Covid pandemic and the lockdown pushed it back again.
Though Karnataka lifted the lockdown restrictions earlier than other states, lack of labour forced companies to remain shut. The result is that both the labourers and companies are in deep financial distress now. The industry has sought a financial package to tide over the crisis. But with the government unlikely to extend a helping hand, companies have pleaded with the administration to allow deferred payments of levies, like royalty, contribution to district mineral fund, National Mineral Exploration Trust, etc.
Of the 33 leased mining companies in the region, 20-22 have started operations. As only 30-35 per cent of the 1.5 lakh labour force has returned, operations are restricted and labourers are being deployed in shifts with reduced numbers. Some of these companies have explored ore, but not been able to sell as the overall market is yet to recover.
“The first two months after the pandemic broke out, mining activities came to a complete stop. But the industry has not returned to normal even after lockdown restrictions were lifted because of lack of labourers,” said T Ekambaram, owner of Tumpti Iron Minerals, Ballari. “Due to scarcity of workers and cancelling of night shifts, our working hours have been extended to 10-11 hours. Earlier, we used to work for only eight hours,” said Vidyakumar K P, a mine labourer.
Social activist and mining expert Tapal Ganesh admitted that the effect of lockdown is bad on mining companies, but the impact on families depending on the sector is far worse. Agencies and individuals involved in transportation of ore, hotel industry and residential rental properties, which are directly tied to the mining industry, have all been hit and many of them have been pushed into deep debts. Several hotels near mines and even in the city are closed as they were highly dependent on labourers who come from different parts of the county. “Before the lockdown, every day over 700 people, mainly labourers, visited my hotel, but now it has reduced to 200,” said Nagaraj Bhat, a hotelier.
“Because of the slump in business, I am in crisis. All my five trucks are parked at the same place for the last few months. For maintenance of these vehicles, I recently sold a truck,” said Rajkumar Nayak, who owns a fleet of lorries.Mines and Geology Department Deputy Director Mahaveer K, however, said that all the 33 leased mines have started operations, but the quantum of production could have gone down during the lockdown as most of the companies had stopped activities. The actual numbers could be found only by March-end, he said and added that mining companies have paid a royalty of Rs 129.97 crore during this fiscal till now.
Joshi’s intervention helps
However, there is some good news for the sector with the State Government clearing the application of National Mineral Development Corporation (NMDC) Limited, India’s largest iron ore producer, to resume ore exploring at the Donimalai mining field. The mining was suspended there in 2018 after the lease lapsed.
This will avoid further loss of revenue to national and state exchequers, apart from providing the much-needed iron ore to the steel industry. The decks were cleared after Union Minister of Coal and Mines Pralhad Joshi intervened and took up the matter with Chief Minister B S Yediyurappa. Joshi said an income of Rs 647 crore can be expected.“The lease extension was stuck as the State Government had asked the company to pay a premium of 80 per cent of the sale value of the mineral. I discussed the issue with the chief minister and the decks were cleared,” Joshi said.