Preference for KIOCL in mining leases, says CM

Chief Minister Siddaramaiah has said that Kudremukh Iron Ore Company Limited (KIOCL) will be given preference over private firms while allotting mining leases. At the same time, Siddaramaiah said the State has recommended to the Centre for granting mining lease to MSPL in the Ballari region.

The written statement was made by Siddaramaiah in the Council on Wednesday, in response to a question raised by Congress member Alvin D’Souza.

Siddaramaiah said that KIOCL had applied for a mining lease 30 times in the last few years. However, with the new ordinance, amending the Mines and Minerals Act of 1958, KIOCL had not received any mining leases.

KIOCL had applied for mining leases in Hombalaghata in Chikkanayakanhalli and Hosahalli, wherein 249 acres of land was set aside for the company, after having received pre-approvals from the Centre. However, the lease was not awarded due to the implementation of the ordinance. Under the ordinance all mining leases were to be auctioned.

First preference

Siddaramaiah said that the ordinance gave the State government the powers to give first preference to state-owned PSUs after having identified the iron ore reserves.
Exercising these rights, he will give preference to KIOCL, the chief minister said.

Siddaramaiah said that the government had already recommended to the Centre to allow the allotment of 201.16 hectares of mining lease to MSPL in Ballari. MSPL is a firm owned by the Baldota Group of companies, which has been permitted by the State government to mine in the Kumaraswamy range of Sandur taluk. The State has also sought for reservation of 107 hectares for state-owned PSUs.