Karnataka to seek SC nod for auction of six Category-C mines

First round of auction will be held for six mines in Dec or Jan, second round for nine mines in April-May 2015

 

The Karnataka Cabinet has decided to auction six Category-C mines in December or January and another set of nine mines in April-May 2015.

The state Cabinet, chaired by Chief Minister Siddaramaiah, met at Kalaburagi in north Karnataka on Friday and decided to send a detailed plan of action to the Supreme Court through the Central Empowered Committee (CEC) for approval.

A CEC team had recently visited the state and conducted a survey of Category-C mines. It had made some suggestions to the government on auctioning the mines. The auction of the mines will be after getting approval from the apex court, the government said in a statement.

In its April 2013 order, the apex court had directed the state government to reallocate Category-C mines to end users through a transparent bidding process. Subsequently, the state government mandated Mineral Exploration Corporation Limited (MECL) to assess the extent of mineral deposits left in these mines. Based on the recommendations of MECL, the state government has decided to put on the block 15 mines in two phases.

The state Cabinet also decided to submit a Rs 2,000-crore plan for rejuvenation of the environment in the mine-ravaged districts of Ballari, Chitradurga and Tumakuru to the Supreme Court for approval.

A special purpose vehicle — Karnataka Mining Restoration Corporation —set up by the government will take up the rehabilitation and reclamation of the environment and improve infrastructure facilities in these three districts.