Karnataka’s move to review its decision to ban transportation of and export of iron ore should not be viewed as magnanimity. Only last week the Union Minister, Mr B K Handique has questioned the efficacy of ban to check illegal mining maintaining that regulation on import and exports was a central subject and state has no authority over it.

Little doubt the Chief Minister, Mr B S Yeddyurappa had made this decision only with the aim to fetter his political adversaries who are involved in illegal mining more than benefitting the state. How far this decision has helped Mr Yeddyurappa to corner his political enemies is not yet clear, but one thing is certain. While the Indian railways have already suffered a loss of Rs 2,500 crore, the transport sector has lost out nearly Rs 6,000 crore due to the ban on iron ore exports and suspension of mineral despatch permits by the Karnataka government. The worst affected are the steel producing industries. Goa’s six steel companies are facing the tough time. Mr Yeddyurappa should have realised that such short-sighted measures do not prove to be effective in politics. Nor do they serve the interests of the companies or the economy of the state. He should have taken strong and publicly visible action to assert the authority of his government. This measure in fact is a sad reflection on regulatory set up in the state as basic causes for illegal mining are not addressed. The state instead should have imposed tight control on movement of vehicles carrying iron ore and also ensured proper accounting of the ore itself. No doubt around 71.27 lakh tonnes of iron ore was exported illegally during last fiscal but this is certainly not the proper mechanism to check this act. The government should strictly enforce auditing procedure to act as deterrent.