In a U-turn, BSY govt to sell 3,667 acres to JSW Steel

In a U-turn, the BS Yediyurappa-led Karnataka Cabinet agreed to sell 3,667 acres of land to the Sajjan Jindal-led JSW Steel Ltd in Ballari, a deal the saffron party had opposed when it was in the Opposition.

This land deal had run into controversy in 2019 when the Congress-JD(S) coalition wanted to go ahead with the lease-cum-sale agreement.

Briefing reporters, Law Minister Basavaraj Bommai said that though the government had agreed to sell the land to JSW Steel, it will not let go of the company's pending dues to the Mysore Minerals Ltd (MML), a state-run company.

According to Bommai, the lease-cum-sale deed was made in 2006 for 2,000.58 acres of land, following which, the government had allotted another 1,666.73 acres at Toranagallu, Kurekuppa, Moosenayakanahalli and Yarabanahalli villages in the Ballari district.

Read: JSW Steel gears up to supply 900 tonnes of oxygen daily by end of April

At the end of the lease-cum-sale period, as the terms of the agreement were fulfilled by the company, the Cabinet decided to sell 3,667 acres to JSW, Bommai said. "However, elected representatives had protested the decision, citing (JSW Steel's) litigation with MML," Bommai said.

The issue was referred to a Cabinet sub-committee headed by Industries Minister Jagadish Shettar. The sub-committee recommended the government to execute the sale deed, Bommai said. The land will be sold as per the old lease agreement, Bommai said.

While in the Opposition, the BJP had accused the Congress-JD(S) coalition of selling the land at a throwaway price of Rs 1.22-1.50 lakh per acre.

On the protest staged by the BJP in 2019 over the decision, Bommai said that the situation was now different, adding that it was essential to encourage industry.

In another decision, Bommai said the Cabinet decided to set aside Rs 493 crore to incentivise micro food processing units under the Centre's 'One District, One Product' scheme.

The amount will be Karnataka's share of the scheme, being implemented over the next five years. Under the scheme, the state will provide 40% of the funds required while the Centre will provide 60%.