SPV to restore mining-ravaged areas

The State Cabinet on Friday gave its nod for setting up of Karnataka Mining Environment Restoration Corporation (KMERC) to restore mining-ravaged areas particularly in the districts of Bellary, Tumkur and Chitradurga.

Briefing reporters after the Cabinet meeting, Law Minister T B Jayachandra said the KMERC will serve as a Special Purpose Vehicle (SPV) to  implement the Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ) as per the directions of the Supreme Court.

With an initial corpus fund of Rs 3,500 crore, the SPV will address the afforestation programmes and provide basic amenities of water, employment and irrigation facilties in the three districts. 

The creation of the SPV was recommended by the Supreme Court-appointed Central Empowered Committee (CEC). 

Violation fines

The funding for the corporation will be drawn from the violation fines and the sale of iron ore from the ‘C’ category mines, after it has been auctioned, Jayachandra said. 

The KMERC will be headed by an officer of the rank of Additional Chief Secretary and its members will be the secretaries of the departments of forest, mining and revenue. 

In another decision, the Cabinet gave its nod for State-owned Mineral Exploration Corporation to study the extent of iron mined and reserves left in ‘C’ category mines to speed up the process of auction of the mines to comply with Supreme court directions.

The court-appointed CEC in its final report in 2012 had placed 166 mining leases in the State in three categories ‘A’, ‘B’ and ‘C’, based on the extent of illegalities committed by the lessees. 

The CEC brought 51 mines under category ‘C’. Based on the CEC report, the court, last year, ordered cancellation of 51 ‘C’ category mines and directed the State to re-allot them through a transparent mechanism to end users.