Mining set to resume in Karnataka in a month

Bengaluru, Mar 7: Mining in Karnataka is all set to resume in a month as the department of mines and geology has readied a list of 108 existing “A” and “B” category companies to grant deemed approval.

After obtaining the deemed approval, the companies need to execute a lease deed with the director of mines and geology and then seek clearance from the Karnataka State Pollution Control Board. Obtaining the Board’s approval may not be a hindrance as the firms have already got the green signal from the Union Ministry of Environment and Forests.

Industry sources said the entire process will take not more than a month from the time the State government gives its approval. The approvals are based on the new Mines and Minerals (Development and Regulation)?amendment ordinance which came into effect on January 12. Subsequent to the Supreme Court directives in the illegal mining case, mining operations abruptly shut down in 2011 following the scams in Ballari. In January, the Siddaramaiah government gave its approval to eight mining firms, including Sesa Sterlite.

The BJP has charged that Siddaramaiah has taken favours from these firms to grant them lease. The eight companies were given renewed licences for a period of 20 years.

The Centre had initially set the State a deadline till February 28 for extending the licences for all existing lease holders. However, due to delay in collation of data, the department could not adhere to the time limit.

Of the 115 “A” and “B” category mining firms, seven companies are still facing issues pertaining to boundary demarcations between Karnataka and the erstwhile unified Andhra Pradesh. All the firms will be given an extension till the time they complete 50 years of mining from the date of getting the letter of intent. According to sources, 90 per cent of the companies will be completing the stipulated 50 years of mining by March 31, 2020.

After March 31, 2020, if the licencees have completed 50 years, the mining pits will be put up for fresh auctions. In Bellary alone, as many as 96 companies were given mining licences in 1954. Most of these companies are still active, though the ownership may have changed hands.

If cases of illegal mining are pending against these companies, be it with the Lokayukta Special Investigation Team (SIT) or the CBI, then they will be given a conditional approval to mine. The conditions stipulate that if any company is found guilty of charges against it, then the government may either ask the firm to cough up the penal amount and/or cancel the mining licence. One such conditional renewal notification has been issued towards Sesa Sterlite on January 7.

On “C” category mining auction, officials claim that the State government may falter in accruing revenue due to falling steel prices.