JD(S) calls for checking iron-ore export loss

Bangalore, July 14 (UNI) The Karnataka Government was reeling under an annual revenue of loss of over Rs 10,000 crore due to the mining policy ''encouraging'' export of iron-ore, Janata Dal (Secular) leader Y S V Datta, MLC, said today.

Addressing reporters here, Mr Datta alleged that of the over 40 million tonnes iron ore produced in the state, about 75 per cent was exported without any value addition.

Stating that the revenue earning for the Government from iron-ore export stood at Rs 80 crore now he said, ''if the whole production was converted to steel, the government can collect Rs 2700 crore, as direct revenue and another Rs 7,000 crore through its share of Excise duty.

The present policy was encouraging export instead of reserving it for captive use for steel industry, he charged.

''The Government has recommended the Centre to impose restrictions on export of valuable minerals and encourage grant of mining leases for captive use by the steel industry'', he said.

Charging that the previous Congress Government headed by S M Krishna had granted mining lease ''indiscriminately'' he said it failed to utilise the ore for captive use in the steel industry.

The JD(S)-BJP coalition Government had decided not to grant mining lease to any company exporting raw iron-ore to other countries.

Coming down to specifics he said, while the Government had recently rejected a mining lease application filed in Chitradurga district, it sanctioned mining area in Sandur for Bhadravathi-based Viswesvarya Iron and Steel Limited.

UNI