SC to study if Karnataka should pay for development of infrastructure for miners

The Supreme Court has agreed to consider a suggestion that the Karnataka government should not bear cost of Rs 2554 crore for construction of new railway lines, sub lines and conveyor system in mineral-rich Chitradurga and Tumakuru districts.

“Since the construction of conveyor systems and railway sidings result in substantial saving on transportation cost being incurred by lessees and the entire capital cost is likely to be recouped in about five years or so it is appropriate that the entire cost is met by the lessees and not by the state government or Karnataka Mining Environment Restoration Corporation,” M K Jiwrajka, former Member Secretary, Central Empowered Committee told the apex court.

The state government has proposed Tumakuru to Davanagere railway lines, sub lines and roads in Chitradurga and Tumakuru from Rs 20,000-crore fund collected under a Comprehensive Environmental Plan for the Mining Impact Zone (CEPMIZ).

It has already set up a Special Purpose Vehicle known as Karnataka Mining Environment Restoration Corporation on June 13, 2014 following a direction by the apex court in a PIL filed by NGO Samaj Parivartan Samudaya.

On being asked by the apex court about feasibility of the projects, Jiwrajka said in a written note that the construction of five conveyor systems and three new railways sublines and a number of roads is not likely to serve any purpose.

A three-judge bench presided over by Justice Ranjan Gogoi would consider his suggestion on September 13. The court also sought to know from the Centre about the directions issued by a separate bench earlier on revisiting the National Mineral Policy 2008 and recovery of costs from miners for illegal mining as mandated under the law.

The proposed scheme plans to cover 28 mining leases, out of which 27 are presently non-operating. The iron ore deposits are scattered, shallow and are of low grades. Most of the C category leases are not likely to be successfully sold and most of the category A and B mining leases are not likely to become operational due to reasons such as in adequate minable reserves, lack of statutory approvals, he said.

“The project that involves a very large infrastructure and is not likely to result in transportation of substantial mineral through conveyor system/railways. So it may be appropriate that the proposed expenditure of Rs 2554 crore by the KMERC may not be approved,” he said.

He suggested that the state government may be directed to prepare and submit an integrated long term infrastructure development plan and taking into consideration the projected demand and production for the next 10-15 years.