'C' category mines' ore only for domestic use

 The State Cabinet on Thursday decided to adhere to the guidelines suggested by the Supreme Court that iron ore henceforth mined from 51 ‘C’ category mines, would be used domestically and only for captive purposes.

Briefing reporters after the Cabinet meeting, Law Minister T B Jayachandra said the government would convey its stand to the Supreme Court soon. The apex court, in its order in April this year, had directed the State government to cancel the licences of 51 mines as they had engaged in largescale illegal mining and ordered for reallotting them to end-users like the steel mills.

“We had sought time from the Supreme Court to place our stand before taking up the reauctioning process. The Cabinet today decided that all the suggestions made by the court would be abided,” he said.

The Court had suggested the government to reallot ‘C’ category mines through a transparent process of bidding to the highest bidder from amongst end-users. The Court also stated that floor price for such auctions would be based on market value, and the ore should be used for captive purposes only. It also restricted export of such ore from ‘C’ category mines.

In another decision, the Cabinet decided to set up subsidiaries under the three transport corporations (KSRTC, NWKRTC and NWKRTC) for assets management of buses purchased under the Jawaharlal Nehru National Urban Renewal Mission. The State government is planning to purchase 2,104 buses at a cost of Rs 1,111 crore under JnNURM.

The Cabinet gave administrative approval for construction of buildings for five medical colleges at Chamrajanagar, Kodagu, Koppal, Gadag and Gulbarga, Jayachandra said.