The Hindu Business Line : Deve Gowda urges Centre to allow mining at Kudremukh

THE former Prime Minister, Mr H.D. Deve Gowda, has urged the Union Government to allow continuing mining operations for the Kudremukh Iron Ore Company Ltd (KIOCL) at Kudremukh in Chikmagalur district of Karnataka.

In an interim order dated September 30, the Supreme Court has directed the company not to mine at Kudremukh after December 31, 2005.

Mr Gowda - who has written a letter to the Prime Minister, Dr Manmohan Singh, in this regard - has sought the personal intervention of Dr Singh to continue mining lease. Mr Gowda, who released the copies of the letter written to the Prime Minister at a press conference here on Saturday, said that around 2,000 direct employees and 8,000 indirect employees will be adversely affected by the closure of mining operations.

Added to this, infrastructure, created over the years with a replacement value of around Rs 4,000 crore, will become redundant, he said.

Mr Gowda said KIOCL has been excellent performer with consistent profits. Last year, the company contributed around Rs 400 crore to the exchequer of the Government of India by way of dividend, and around Rs 300 crore to the Karnataka exchequer by way of royalty, cess, duties and electricity charges, he said.

Mr Gowda said the company was in possession of mining lease at Kudremukh in Chikmagalur valid for 30 years. Based on a public interest litigation filed by a non-governmental organisation, the Supreme Court pronounced its judgment on October 30, 2002 that the mining operations at Kudremukh shall continue up to December 2005. Following this, the company filed a petition for direction for further continuation of mining operations on safety and other reasons.

However, he said, the Supreme Court again on September 30, 2005 directed that no mining will be permissible after December 31, 2005. The company's application has been listed for hearing in January 2006, he said.

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