Supreme Court Order Related To Mining In Karnataka State


Supreme Court Order

In recent days Karnataka has become very famous due to Mining. Government has taken very strict actions to punish one who has misused mining. In process of this they have conducted survey of all mines all over Karnataka, based on this they have issued a final order regarding to reopening of mines. Here are some important points related to supreme court order.  

  1. Categorizing of A, B & C : Basis of the extent of encroachment in respect of the mining pits and over burden dumps.
  2. The iron ore which becomes available should be used for meeting the iron ore requirement of the steel plants and associated industries located in Karnataka and also of those plants located in the adjoining states which have been using the iron ore from the mining leases.
  3. Exports outside the country should be permissible only in respect of the material which the steel plants and associated industries are not willing to purchase on or above the average price realized by the Monitoring Committee.
  4. Sales of Iron ore should continue to be through E-auction conducted by the Monitoring Committee.
  5. 90% of the sale price received during the e-auction may be paid by the buyer directly to the respective lease holders and the balance 10% mat be deposited with the Monitoring committee.
  6. Compensation: a) for illegal mining by way of mining pits outside the leases area is imposed at the rate of Rs 5.00 crore for per hacter. b) by way of over burden dumps road, office,etc outside the sanctioned lease area is imposed at Rs 1.00 Crore for per hacter.
  7. Category –C : Mines falling under category C will be cancelled/determined and the entire sale proceeds of the existing stock of the iron ore of these leases should be retained by the Monitoring Committee.
  8. After cancelling the lease of Mines falling under category C, leases may be directed to be allotted/assigned through a transparent process of bidding to the highest bidder. And the ore produced from such mines should be used for captive use only and no sale/export will be permissible.
  9. SPV : Special purpose vehicle under the chairmanship of chief secretary, government Karnataka
    1. Allotment/assignment of the cancelled mining lease.
    2. Compensation/penalty received/receivable by the defaulting lessee, receivable by Monitoring Committee of Category A, sale proceeds of the confiscated material may be directed to the transferred to the SPV which uses exclusively for environmental and developmental.
    3. Out of 20% of sale proceeds of category A, 10% will be transferred to SPV, and balance 10% will be reimbursed.
    4. For category B, after deducting the penalty, the estimated cost of the implementation of R & R plan, 10% of the sale proceeds will be transferred to SPV and balance if any to the lessees.
    5. No new mining leases.
    6. Pending applications for grant of mining leases in ramgad and swamimalai block and for which the NOC’s were earlier issued will stand rejected.


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Keywords :
Court order , Mining , Karnataka State


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