Even with the BJP threatening a state-wide protest over the controversial Jindal Steel land deal, Karnataka Chief Minister HD Kumaraswamy is unlikely to intervene in the government decision to hand over 3,667 acres of land with the iron ore to JS Steel Ltd in Ballari district after the expiry of lease period.
“Essentially, the issue has nothing to with the Chief Minister or his office. The deal was penned by the state industry department headed by the Industry Minister. Following this, there was a cabinet meeting in which it got clearance. All the specifics have been approved by the Industry Minister and the Chief Secretary,” a source close to the CM told TNM.
“On Monday, Congress leader HK Patil may meet the Chief Minister and express his objections to the deal but the latter will not change anything as seemingly there is nothing illegal (in the deal). The Chief Secretary has already given his approval,” the source added.
What is the controversy?
The BJP and a certain section of activists are opposing the lease and sale of 3,700 acre land to JSW Steel at a throwaway price. Even senior Congress leader HK Patil, too, has spoken publicly against the deal, embarrassing the state Congress leadership.
"They might have taken commission, that is why they want to sell the land. If necessary, we will sit on dharna after three to four days,” BJP state president BS Yeddyurappa said recently. Incidentally, BS Yeddyurappa himself was accused of accepting a bribe from Jindal during his chief ministership. He was acquitted in a CBI court in 2016.
Meanwhile, the government, including the state’s Industry Minister, KJ George, has maintained that this deal is according to the MoU signed between the company and the government, according to a 2005 deal.
The deal
In 2006, the state government had allotted 2,000 acres of land to Jindal on a lease-and-sale agreement for six years at a rate of Rs 90,000 per acre, in addition to another 1,700 acres for 10 years at Rs 1.22 lakh per acre. Accordingly, these two land parcels were to be sanctioned for sale based on conditions of employment generation.
In the cabinet meeting on May 27, the government gave a nod to the sale deal, setting the price at Rs 1.22 lakh per acre for the first parcel of land and Rs 1.5 lakh per acre for the second parcel of land.
The opposition to this deal is on grounds that the market rate for the parcels of land in the area is currently Rs 1 crore per acre. Some others pointed out that the state’s industrial policy talks about selling a parcel of land permanently only after a lease period of 99 years and not 10 years as in this case.
To this, the government responded, stating that the same could not be followed as the deal predates 2014 when the policy framework came in place. In 2014, the state government extended the lease period given to industries through the Karnataka Industrial Areas Development Board (KIADB) from 30 years to 99 years. This was later scrapped in 2017, paving the way for absolute sale deed.