A high-level committee headed by Additional Chief Secretary K Jairaj had recently recommended the government to set up an SIT as the Lokayukta has found rampant illegal mining, causing a loss of about Rs 16,000 crore to the State exchequer.
The SIT will be set up soon after obtaining the chief minister's approval.
According to sources, the government is planning to appoint Bangalore City Joint Police Commissioner Pranav Mohanty as the head of SIT.
He is presently holding the rank of DIG and is likely to be elevated to the IGP rank soon. He was part of the Lokayukta team which probed illegal mining.
Besides, officers from Mines and Geology, Commercial Taxes, Forest, Revenue, Transport and other departments will be part of SIT, official sources said.