Mining-related jobs are set to return to Bellary, Chitradurga and Tumkur districts in Karnataka. With the Supreme Court lifting the ban on private iron ore mining operations in the State, resumption of mining will lead to more jobs being created and improve the socio-economic environment of the region.
The ban on iron ore mining in the State, particularly Bellary, had left over a lakh people unemployed. Mining activities in the neighbouring Chitradurga and Tumkur districts too were hit for nearly two years.
According to Mines Safety Association of Karnataka estimates, the three districts had 50,000 people directly employed and about one lakh indirectly employed in mining activities.
Basant Poddar, senior vice-president, Federation of Indian Mineral Industries (FIMI) and managing director, Mineral Enterprises Limited, said: “We welcome the apex court order and we also agree with the Supreme Court observation last Friday, that Karnataka would have gone back to the stone ages.”
“Today’s order offers economic growth and security in the region. It will also help local economy in all the mining districts. It will also make the industry competitive as they source raw material (iron ore) locally,” he added.
Dinesh Singhi, Managing Director BMM Ispat Ltd said “Changes are imminent in the local socio-economic scene but on the positive side. More people are likely to get jobs, especially in various stages of mining activity.”
“Changes in the local economy will not be immediate, but over four or five months for many mines need to get clearances from various quarters,” he added.
“It is good for the industry, both for mining and steel industries. It may pave the way for restarting growth. Not only in Karnataka, the impact will be felt in other States as well,” said Anjani Agrawal, Partner and Sector Leader, Metals & Mining, Ernst & Young India.
When mines begin operations, employment opportunities will open up. There will be plenty of direct employment in sectors such as logistics and allied services sectors, he added.
The Karnataka government had been expressing its concern to the Supreme Court on the ban on mining activity, as it had taken a toll on the local economy and on the State’s revenues.
Ever since the ban on iron ore mining, the State has suffered losses of over Rs 4,000 crore per year.
The State government, in its filing before the Supreme Court, had said: “We are a little bit worried because nearly one lakh people have lost their jobs all over Karnataka. But certainly we will look into how to manage all this.”