Illegal mining thrives on 'risk' permits

Illegal mining and transport operators have developed a system parallel to the government’s permit system. They rightly call it  ‘risk permits’ because truck drivers know that they can be caught by officials for illegally transporting ore. Illegal mining business is thriving on risk permits in Bellary. This illegal permit raj has become a system on its own ever since Chief Minister Yeddyurappa stopped issuing fresh ore transport permits.
The modus operandi is simple - those who mine ore without licence, mainly for export purpose, obtain risk permit from those who are into the business of issuing it. Those who are behind the racket are not ‘visible’ but control men at checkposts. They have a network spread over Karnataka and Andhra Pradesh.

The risk permits, accessed by Deccan Herald in Hospet taluk and Hagari village where a checkpost is located, appears like ordinary receipt of a grocery shop. It has jottings of numbers to apparently show that some money has been paid and on the top it is printed - Delivery Note cum Tax Invoice. In some receipts it is printed as Sale Invoice.

It provides no details from where the ore has been extracted, name of the transporting company or hologram of the Department of Mines and Geology, which is mandatory in case of the legal permit. The name of some private companies are printed in bold letters. Receipts are being issued in the name of companies like Tirumala Trading, Eshwar Minerals and Venkateshwara Minerals.

An ore transporter must compulsorily carry Forest Way Permit, Mineral Despatch Permit of the Mines and Geology Department and Weigh bridge slip among others. But risk permit replaces all the legal documents in case of illegal transportation.

Drivers carrying risk permits just pay a flat Rs 200 per tonne as ‘royalty’ at checkposts. Trucks plying using these permits have a smooth and uninterrupted drive up to the Karnataka-Andhra Pradesh boundary. No officials attempt to stop such trucks. The Road Transport Authority and Mines and Geology Department officials some times conduct random verification. However, trucks are allowed to proceed, once the risk permit is shown, officials said on condition of anonymity. There is no problem even after the boundary is crossed. Fake permits and invalid documents are in use for truck movement in Andhra Pradesh also.

A conservative estimate by officials puts the number of ore-laden trucks entering Andhra with risk permit at 1,000. Some big-time mining companies which are into illegal mining by encroaching the non-leased areas are using risk permits, officials said.

The use of risk permits has significantly increased after the Lokayukta police raided stock yards and ports some months ago. Illegal traders find this as a less risky one than carrying fake permits, officials explained.

Rampant use of risk permits has made transporters with legal documents to carry on their business difficult. Truck drivers are getting handsome wages to transport illegal ore.
Rahul N Baldota, Executive Director, MSPL, which is one of the largest mining companies in Bellary, said ore is being sold without invoice and payment of royalty using risk permits.

But none in Bellary, whether those who are into business legally or officials of the Forest or Mines and Geology Department or checkposts reveal the names of those who are running the risk permit system. After all many are benefited by the illegal system.