<p>The Karnataka state government is trying to gain access to a staggering Rs 24,000 crore in the hands of a special purpose vehicle (SPV) enjoying financial autonomy.</p>.<p>Efforts are afoot, in clear violation of Supreme Court orders, to restructure the Board of Directors (BoD) of the Karnataka Mining Environment Restoration Corporation (KMERC), which sits on the funds. The restructuring also seeks to make district in-charge ministers members of the board, highly placed sources said.</p>.Explained | What harm could one coal mine do?.<p>KMERC is a special purpose vehicle (SPV) set up in 2014 to restore and rehabilitate the mining-affected districts of Ballari (from which Vijayanagara was carved out), Tumakuru and Chitradurga. An SPV is a subsidiary company with a specific brief. Even back then, the government had tried to dilute the SPV’s powers, but had backed off following the Supreme Court directions.</p>.<p>During a KMERC review meeting on July 27, Minister for Mines and Geology S S Mallikarjun pressed for a restructuring of the board to make the chief minister its chairman and ministers members.</p>.<p>This effectively paves the way for Ballari district minister B Nagendra, accused in 42 cases, including illegal mining cases, to become a member of the powerful board. Of the three others, except G Parameshwara (Tumakuru) other district-incharge ministers B Z Zameer Ahmed Khan (Vijayanagara) and D Sudhakar (Chitradurga) face serious cases that goes against the spirit of the court’s directions. While Khan is being probed by the enforcement directorate for money laundering, the CBI’s fraud cell is investigating Sudhakar.</p>.<p>The Supreme Court in 2014 thwarted the government’s attempts to make the SPV a registered society.</p>.CBI registers PE to probe alleged illegal mining by Jharkhand CM Hemant Soren's aide in Sahibganj.<p>A society would have meant little scrutiny and increased political involvement.</p>.<p>The managing director of KMERC has power to approve projects worth Rs 15 crore, the sub-committee, comprising its members, has the power to approve projects worth Rs 50 crore. Projects that cost more than Rs 50 crore have to be approved by the board.</p>.<p>The court has ordered that the SPV be an empowered company with clear financial autonomy. Its finances should be handled directly and not routed through the state’s consolidated funds, it stressed.</p>.<p>Subsequent interventions of the court have helped the KMERC retain its autonomy. In the current set-up, senior officials from key departments are members of the board, and retired Supreme Court judge B Sudershan Reddy is an oversight authority now.</p>.<p>“If the government succeeds in its attempt, the consequences are unlikely to bring positive changes. For instance, a sub-committee of district-in charge ministers, especially those with conflict of interest, will end up taking up projects with no regard for the original intentions,” sources in the government told <em>DH</em>.</p>.<p>A senior official sought to allay such fears and said the government was only trying to speed up projects pending for years. “The government is interested in expediting the restoration projects. The minister’s suggestion was discussed in detail. Considering the court’s riders, a legal opinion was sought. The advocate general has opined that such changes may be inappropriate. It can be done only after appealing for the same in the apex court,” the official added.</p>.<p>S R Hiremath, president of the activist group Samaj Parivartana Samudaya (SPS), said KMERC holds the responsibility of reversing the large-scale ravages caused by illegal mining.</p>.<p>“Health, livelihood and environment are the three sectors that require immediate attention. We hope good sense prevails and the government allows the SPV to function according to the court’s directions,” he said.</p>.<p>Rehabilitation has been delayed as the Comprehensive Environment Plan for Mining Impact Zones (CEPMIZ) was approved only in April 2022. Lack of district-level expert teams has slowed down the functioning of the SPV.</p>.<p>The SPS in February wrote to the oversight authority noting that many of the projects proposed by KMERC, calling for an expenditure of Rs 2,328.07 crore, were contractor-driven. “They do not address the needs of the mining-affected people, especially women and children,” the letter said, listing several irrelevant projects.</p>.<p>Highlights - Murky moves? * KMERC set up to restore, rehabilitate mining ravaged distircts * It is a special purpose vehicle enjoying financial autonomy * State government trying to gain access to Rs 24,000 cr with the SPV * To do this, moves being made to restructure board of directors * Minies Minister S S Mallikarjun pressed for making CM chairman and ministers members</p>
<p>The Karnataka state government is trying to gain access to a staggering Rs 24,000 crore in the hands of a special purpose vehicle (SPV) enjoying financial autonomy.</p>.<p>Efforts are afoot, in clear violation of Supreme Court orders, to restructure the Board of Directors (BoD) of the Karnataka Mining Environment Restoration Corporation (KMERC), which sits on the funds. The restructuring also seeks to make district in-charge ministers members of the board, highly placed sources said.</p>.Explained | What harm could one coal mine do?.<p>KMERC is a special purpose vehicle (SPV) set up in 2014 to restore and rehabilitate the mining-affected districts of Ballari (from which Vijayanagara was carved out), Tumakuru and Chitradurga. An SPV is a subsidiary company with a specific brief. Even back then, the government had tried to dilute the SPV’s powers, but had backed off following the Supreme Court directions.</p>.<p>During a KMERC review meeting on July 27, Minister for Mines and Geology S S Mallikarjun pressed for a restructuring of the board to make the chief minister its chairman and ministers members.</p>.<p>This effectively paves the way for Ballari district minister B Nagendra, accused in 42 cases, including illegal mining cases, to become a member of the powerful board. Of the three others, except G Parameshwara (Tumakuru) other district-incharge ministers B Z Zameer Ahmed Khan (Vijayanagara) and D Sudhakar (Chitradurga) face serious cases that goes against the spirit of the court’s directions. While Khan is being probed by the enforcement directorate for money laundering, the CBI’s fraud cell is investigating Sudhakar.</p>.<p>The Supreme Court in 2014 thwarted the government’s attempts to make the SPV a registered society.</p>.CBI registers PE to probe alleged illegal mining by Jharkhand CM Hemant Soren's aide in Sahibganj.<p>A society would have meant little scrutiny and increased political involvement.</p>.<p>The managing director of KMERC has power to approve projects worth Rs 15 crore, the sub-committee, comprising its members, has the power to approve projects worth Rs 50 crore. Projects that cost more than Rs 50 crore have to be approved by the board.</p>.<p>The court has ordered that the SPV be an empowered company with clear financial autonomy. Its finances should be handled directly and not routed through the state’s consolidated funds, it stressed.</p>.<p>Subsequent interventions of the court have helped the KMERC retain its autonomy. In the current set-up, senior officials from key departments are members of the board, and retired Supreme Court judge B Sudershan Reddy is an oversight authority now.</p>.<p>“If the government succeeds in its attempt, the consequences are unlikely to bring positive changes. For instance, a sub-committee of district-in charge ministers, especially those with conflict of interest, will end up taking up projects with no regard for the original intentions,” sources in the government told <em>DH</em>.</p>.<p>A senior official sought to allay such fears and said the government was only trying to speed up projects pending for years. “The government is interested in expediting the restoration projects. The minister’s suggestion was discussed in detail. Considering the court’s riders, a legal opinion was sought. The advocate general has opined that such changes may be inappropriate. It can be done only after appealing for the same in the apex court,” the official added.</p>.<p>S R Hiremath, president of the activist group Samaj Parivartana Samudaya (SPS), said KMERC holds the responsibility of reversing the large-scale ravages caused by illegal mining.</p>.<p>“Health, livelihood and environment are the three sectors that require immediate attention. We hope good sense prevails and the government allows the SPV to function according to the court’s directions,” he said.</p>.<p>Rehabilitation has been delayed as the Comprehensive Environment Plan for Mining Impact Zones (CEPMIZ) was approved only in April 2022. Lack of district-level expert teams has slowed down the functioning of the SPV.</p>.<p>The SPS in February wrote to the oversight authority noting that many of the projects proposed by KMERC, calling for an expenditure of Rs 2,328.07 crore, were contractor-driven. “They do not address the needs of the mining-affected people, especially women and children,” the letter said, listing several irrelevant projects.</p>.<p>Highlights - Murky moves? * KMERC set up to restore, rehabilitate mining ravaged distircts * It is a special purpose vehicle enjoying financial autonomy * State government trying to gain access to Rs 24,000 cr with the SPV * To do this, moves being made to restructure board of directors * Minies Minister S S Mallikarjun pressed for making CM chairman and ministers members</p>