SPV to undo environmental damage to mining zones

Newly-formed corporation will take up Rs 30,000 crore worth of projects to rehabilitate areas damaged by rampant illegal mining

The Karnataka government has proposed to incorporate a special purpose vehicle (SPV) to formulate and implement projects under the Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ). The Supreme Court, on the recommendations of the Central Empowered Committee (CEC), had directed the state government to form the SPV.

The SPV will be known as the Karnataka Mineral Rich Region Development Corporation (KMRRDC) and will function under chairmanship of the chief secretary to the government of Karnataka. Key senior officers from the state government such as principal secretary, finance department and development commissioner will be on the governing body. Also, senior officers from agriculture, horticulture, rural development, water supply, health, women and child development, education, forest and environment, mines and geology, and employment & training and industries among others will be members.

“The recommendation of the CEC to select officers of integrity and vision will be kept in mind while selecting the core team for implementing the projects,” S V Ranganath, chief secretary, government of Karnataka, said in his affidavit to the Supreme Court recently.

The government has also suggested that one of the two directors of the SPV could be from the mining industry and the other from the environment sciences background.

“As the scale of operations to be undertaken by the SPV will be over Rs 30,000 crore, legislative sanction of the same would be in order,” Ranganath said.

All infrastructure built by the SPV should be considered to have been created on a ‘Build, Own, Operate and Transfer’ (BOOT) basis and the assets after their creation will be transferred to the respective departments for operating and maintaining them. The SPV will take up all ameliorative and mitigating measures as suggested by the CEC.

As the CEPMIZ will implement not only afforestation programmes but also a whole series of development works in the areas of education, health, nutrition, water supply, employment and training, roads, minor irrigation, among others, it is desirable that there is legislative sanction for the same. These programmes are routinely funded through budgetary provisions.

Since the CAG reports are to be submitted to the state legislature to be further discussed in the Public Accounts Committee, it is all the more desirable that funds to the SPV are routed through the state budget so that the legislature and its committees are fully aware of the activities taken up by the SPV, the chief secretary said.