Karnataka cabinet gives nod to mining areas' restoration

KMERCL will undertake ecological and social restoration work worth Rs 30,000 cr over the next 30 years

The Karnataka government is set to form a Karnataka Mining Environment Restoration Company Ltd (KMERCL) to restore mining-ravaged areas in Bellary, Tumkur and Chitradurga districts. The state cabinet approved the proposal on Friday evening.

KMERCL will undertake ecological and social restoration work worth Rs 30,000 crore over the next 30 years. The Supreme Court had directed such an entity be set up under Section 25 of the Companies Act, 1956, with an initial corpus of Rs 3,500 crore. This is part of the Comprehensive Environment Plan for the Mining Impact Zones.

“Karnataka will be the first state in the country to undertake such an ambitious project. It could become a model for replication elsewhere in the country,” said Tushar Girinath, secretary, department of mines.

The Central Empowered Committee of the Supreme Court, in a report dated February 3, 2012, had recommended establishment of a Special Purpose Vehicle for ameliorative measures around mining leases in these three districts. The SPV will implement not only afforestation programmes but a series of development works in the areas of education, health, nutrition, water supply, employment and training, roads and minor irrigation, among others.

Girinath said the company’s board would be headed by the additional chief secretary and have secretaries of relevant government departments as members. Also, a nominee from the Federation of Indian Mineral Industries would represent the mining industry on the board.

The court had also directed that funds collected from mining firms be maintained in a separate account of the company, not be transferred to the state treasury.