India's Karnataka government to resume iron ore mining at Donimalai
2020-09-16 14:29:04 [Print]
The Karnataka government on Tuesday decided to resume iron ore mining at Donimalai in Bellari district, which had been stopped since 2018, and said it expected to earn revenue of Rs 647 crore a year from it. This was decided at a cabinet meeting here.
Donimalai is rich in iron ore and was in the custody of state-owned NMDC for 50 years when its lease period ended in 2018, sources in the government privy to the issue said.
Since then the renewal did not happen as Karnataka wanted a premium of 80 per cent, which NMDC did not agree to, the sources said, adding that the state was losing GST, royalty, premium, economic activities around Donimalai and employment opportunities to the people working there.
"We have resolved that the impediment pertaining to NMDC mine lease is removed. Consent has been given to start mining at Donimalai in Sandur Taluk," law and parliamentary affairs minister J C Madhuswamy said at a media briefing after the cabinet meeting.
Donimalai is rich in iron ore and was in the custody of state-owned NMDC for 50 years when its lease period ended in 2018, sources in the government privy to the issue said.
Since then the renewal did not happen as Karnataka wanted a premium of 80 per cent, which NMDC did not agree to, the sources said, adding that the state was losing GST, royalty, premium, economic activities around Donimalai and employment opportunities to the people working there.
"We have resolved that the impediment pertaining to NMDC mine lease is removed. Consent has been given to start mining at Donimalai in Sandur Taluk," law and parliamentary affairs minister J C Madhuswamy said at a media briefing after the cabinet meeting.
