World’s largest steel major Arcelor-Mittal is now targeting Karnataka. Due to stiff local people’s resistance movement, it is not getting requisite tracts of land in Jharkhand and Orissa for setting up its steel plants. There persists a high degree of uncertainty regarding its continuation in these mineral-rich states. It is there fore making in-roads in Karnataka. It is eyeing to use up the most invaluable mineral and natural resource wealth of the state.
Why are global corporate giants like Arcelor Mittal bent upon penetrating into Karnataka? The sole reason is that it is very rich in mineral and natural resources. 10 per cent of the country’s total hematite iron ore resources are based in Karnataka. Its place comes after Orissa (33%), Jharkhand (27%) and Chhatishgarh (19%). In addition to this, 74 per cent of the country’s total magnetite iron ore resources are in Karnataka.
Ascebestos, bauxite, chromite, dolomite, graphite, lime-stone, magnesite, magnese, quartz, silica sand, etc., are abundantly available here. Most of the country’s felsites, moulding sand (63%) and fuchsite quartzite (57%) are concentrated in Karnataka. Granite rocks are spread over an area of more than 4,200 square kilometers. Therefore this state is famous for its ornamental granites all over the world. Gold mines are also situated here.
Besides Arcelor-Mittal, South Korean steel major Posco is also trying to set up its plant in Karnataka. It is estimated that its proposed steel plant would be of an annual capacity of 4 to 6 million tones. Tata Metaliks has made up its mind to set up a steel plant having an annual capacity of 3 to 5 million tones. Essar Steal is planning to install a steel plant of an annual capacity of 6 million tones. JSW steel is working on a plan which proposes to enhance the annual capacity of its on-going steel project from 9 million tones to 16 million tones. The real intention of global corporate entities is to own or control the entire mineral and natural wealth of the state.
At present, about 42 million tons of iron ore is being mined every year in Karnataka. Out of this 30 million tons is exported and the remaining 12 million is swallowed by J.S.W. Steel. It is estimated that in Karnataka, there is more than 1.2 billion tons of iron ore and giant multinational corporations are fixing their eyes on it to establish their momopoly. If the ambitious propasal by various corporate groups to establish iron plants or by JSW steel to enhance the capacity of its exisleng plant are accepted and executed, there will be fierce struggle to capture iron ore resources in the state. Mining on such a large scale will start that the entire agriculture, rural population and the conventional means of livelihood of the local people in Karnataka will be under severe attack. Mafia groups will mushroom at different places in Karnataka who will act under the corporate colononial umbrella, participate in the state power, and whose presence will be felt in all political parties who will then safeguard the interest of multinational corporations (domestic as well as foreign) remaining both in ruling and opposition parties.
In Karnataka a network of basic infrastructural facilities already exists for the extension of corporate colonialism and these facilities are constantly increasing. About 3,172 km. long network; about 3973 km. long highways, about 9829 km. long main roads (constructed by the state government) a big port like New Mangalore Port, and 10 other ports, already exist and the government has started executing a scheme of building about 2,381 km. long main roads. An important point with Karnataka is that here both Eastern ghat and Western ghat exist and they meet in the Nilgiri mountain range.
If the steal projects by corporate houses (domestic and foreign) and the mining activities by them or by their henchmen are not stopped with immediate effect, then farmers, ordinary people, indigenous communities and local rural areas will be destroyed.
Karnataka state is very rich from agriculture and farming viewpoint. All the three crops-kharif, Rabi, Jayad are grown here. Chief crops are: peddy, ragi, millet, maize, dalahan, tilhan etc. Cash crops are also in abundance- cotton, sugar cane, green and red chillies, cashew, coconut, tobacco etc., Moreover Karnataka is the biggest producer of coarse grains, raw silk, coffee in the country. Mega projects to established by domestic and foreign multinationals will displace people in large mumbers from land and livelihood which will create great disaster in Karnataka.
Dr. K.S. Anandi
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