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'SC nod must for mining licences'

Set up special purpose vehicle: CEC to State
Last Updated 30 September 2012, 19:05 IST

 The Supreme Court-appointed Central Empowered Committee (CEC) has suggested that no new mining licences should be given without obtaining permission of the apex Court in iron ore rich districts of Karnataka.

As per the submission made by CEC advocate Sham Diwan before the Supreme Court green bench, the panel also said that even cases for which notifications have been issued and but where leases have not been executed should also obtain fresh permission from court.

However, the expert panel said the Monitoring Committee headed by Karnataka chief  secretary can sell the low grade iron ore, whether seized or dumped outside the mining pit, to cement plants and construction of nuclear plants.

The panel also recommended that the Karnataka government should set up a Special Purpose Vehicle (SPV) to take steps to improve the environment as per the a Comprehensive Environment Plan for the Mining Impact Zone (CEPMIZ) in iron ore rich districts- Bellary, Chitradurga and Tumkur.The Chief Secretary of Karnataka should be head of the SPV and officers of different departments should be its members. The SPV should function in a transparent manner and its accounts should be subject to an annual audit by the Comptroller and Auditor General (CAG). The 10 per cent amount of the sale proceeds of iron ore by the Monitoring Committee should be transferred to the SPV for implementation of the environment recovery plan, said the panel. 

The CEC also suggested the apex court to direct the state government to submit the details pertaining to regaining of lost environment as per the CEPMIZ and setting up SPV and its functioning and other details to Supreme Court within four weeks. The panel also asked the court to give direction to concerned authorities to expedite the process of demarcation of interstate border between Andhra Pradesh and Karnataka which runs through Bellary reserve forest.

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(Published 30 September 2012, 19:05 IST)

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