Bengaluru: A proposed steel plant in Karnataka is facing protests from an unlikely coalition—seers, ruling Congress MLAs, including a close aide of Chief Minister Siddaramaiah, and opposition BJP legislators, notably Gali Janardhana Reddy, the alleged kingpin of illegal mining in the state.
The protesters are against the Rs 54,000 crore investment that has been pledged by mining major Baldota Group for setting up a 10.5 million tonne per annum capacity steel plant in Koppal, about 351 km away from Bengaluru.
“Just like how there is an agricultural policy…similarly we need a special industrial policy for Koppal. How many factories have come so far and how many more should be allowed or shouldn’t be allowed. There should be an audit of the damage done to Koppal region so far,” Sri Gavi Siddeshwara, a seer from the dominant Lingayat math in the region, said at the protest site in Koppal Monday.
According to the agitators, the plant is likely to further pollute the fragile ecosystem of the region which has already seen years of unregulated industrial activities that has done irreparable damage.
Raghavendra Hitnal, the Congress MLA from Koppal who is said to be a close aide of Siddaramaiah, too, is part of the protests.
“We are protesting against the setting up of such a factory so close to the city. Protecting the environment is our right and if there is something that affects our rights, we have to come together. We are fighting to get back this right by protesting,” he said during the protest.
He added that Siddaramaiah too was keen on resolving the issue at the earliest even though the CM is yet to break his silence on the matter.
Industries minister M.B. Patil told ThePrint Tuesday that he was in touch with the protesters and likely to meet them to resolve the issue. He also said he would meet Gavi Siddeshwara in person.
The Baldota Group did not respond to a mail sent by ThePrint with queries on the subject.
The agitation has left the Siddaramaiah-led government red-faced, since the Baldota Group was among the first to sign an MoU for investment ahead of the Global Investors Meet (GIM) in Bengaluru earlier this month, and also among the biggest investors.
Karnataka claims to have raked in Rs 10.27 lakh crore investment into the state in this GIM, and also has termed itself the most-favoured investment destination in the country.
The state government is also facing protests in Honnavar, where fisherfolk are against a geological survey for a proposed greenfield commercial port.
Locals have opposed large projects in other states as well but any such agitation in Karnataka threatens to dent its ability to attract private investment, which it relies on heavily to create jobs and carry out development activities.
Successive governments in Karnataka have also been criticised for poor conversion of investment pledges which has been just around the halfway mark at best since the biennial GIM began in 2000.
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Seers in charge, ‘emotional’ issue
Caste has a significant influence on Karnataka’s political and social landscape and its spiritual leaders hold a lot of power.
The maths or monasteries, irrespective of the caste group they are affiliated to, run schools, colleges, hospitals and other charitable initiatives which bring in followers from other communities as well. Political leaders run to get the blessings of seers present in a constituency and the spiritual leaders head strong lobby groups.
Gavi Siddeshwara commands a sizable following and leaders from the ruling party seem keen to support him, fearing loss of support during elections.
Even Janardhana Reddy, a BJP MLA, took part in the protest to oppose the proposed plant in Koppal, indicating the importance of seers in the state.
Seers have earlier too led such protests. In 2013, South Korean steel major Posco dropped plans to set up a $5.3 billion steel plant in Gadag after nearly 2 years of protests against the project by a prominent seer.
In the face of the Koppal protest, Patil is feeling the pressure to find a quick solution to avoid a hit to investor sentiment, especially after he claimed that his department would convert “at least 70 percent” of MoUs signed in this year’s GIM.
But the department cannot intervene in the matter since the issue is more “emotional” and less “procedural”, according to a senior Karnataka government official.
On whether the protest can dent investor sentiment, the official added that it was unlikely.
“Maybe, they (protests) are politically motivated or genuine…we don’t know the facts. But they (protesters) are apprehensive that it’s (steel plant) closer to the city. Considering the past records of few of the industries where pollution has been high… they (protesters) may be apprehensive,” the official said.
Karnataka has been criticised for poor conversion rate of investment interests into the state largely on account of red-tape, long delays in securing requisite clearances, corruption, legal entanglements and even farmer protests over land acquisitions, among other reasons.
Some or a combination of these factors have cost Karnataka hundreds of thousands of crores in investment and millions of potential new jobs.
High land rates in cities like Bengaluru have also forced investors to seek out greener pastures in neighbouring states like Telangana, Andhra Pradesh, Tamil Nadu and others.
According to government data, out of 142 proposals totalling Rs 49,379.13 crore approved between 2013 and 2019 under Section 109 of the Karnataka Land Reforms Act, more than 90 proposals remain non-starters. These include 23 that have been dropped completely.
Delay in resolving land issues cost the state a chance to create 80,000 jobs, data shows.
(Edited by Nida Fatima Siddiqui)
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