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High level meeting between Karnataka and Coal Ministry sees undertaking of many important decisions

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Auction, extension, licensing among the many decisions undertaken at the meeting

Bengaluru, August 29: A high level meeting in Bengaluru between the State and the ministry of coal and mines witnessed host of important decisions undertaken, including extension of lease at Donimalai in Ballari district and industrial BGML land for industrial cluster in Kolar district. After the meeting, Chief Minister B S Yediyurappa told reporters, “Some important decisions have been taken after the detailed discussions in the meeting today, especially the extension of lease period of Donimalai mines and distribution of coal”.

Addressing reporters, Union Coal Minister Pralhad Joshi, who was present along with the senior officials of his ministry, said he has asked Yediyurappa, state revenue minister R Ashoka and State Industries Minister Jagadish Shettar to conduct the physical survey of the land in three months. The MECL meanwhile will also explore the entire area to identify the resources available in six months. “If the mines are found then the state will be benefited by auctioning it and getting royalty over it. If nothing is found then the land, which is not fit for the mining, will be provided to the department of industries for creating an industrial park”, Joshi said.

Another major decision taken in the meeting was the straightaway giving away of the G-4 level composite license while auctioning mines instead of time consuming G-2 level of auction, as this would not only benefit Karnataka but other states as well because the G-4 license means Prospective License-cum-Mining License.

“After obtaining PL-cum-ML, once you start the work if there is a mineral, you can go ahead or else there is an exit route also. In that exit route only condition is that you should share the data with us”, the Union Minister who is also an MP from Dharwad, told reporters, adding that the Centre has decided to address the Baranj coal mine project which has been pending for many years. The mine was given to the Karnataka government many years ago but due to the Mine Development Operator issues, the exploration did not happen. Later, the Karnataka government took a decision to resume the mining activities and sent the proposal to the Centre, which has been approved, Joshi added.

A coal controller has been sent by the ministry, for addressing the coal theft issue. Besides this, the ministry will make an assessment and send it to the Maharashtra government by settling the royalty issue to resume the mining activities at the earliest, the union minister said. It was also decided in the meeting to ask the Chief Managing Director to reconsider the coal prices sent from Singri mines to Karnataka. It was also decided to set up a better sampling and testing system to address the slippage of the grade of coal affecting the thermal power generation, so that the coal quality is maintained throughout.