Bengaluru, Aug 28 (PTI) Union Minister for Coal and Mines Pralhad Joshi on Friday said a decision would be taken on the contentious Donimalai iron ore issue in three months.
Donimalai in Ballari district is iron ore rich, which was in the custody of state owned NMDC for 50 years when its lease period ended in 2018, according to sources in the government privy to the issue said.
Since then the renewal did not happen as Karnataka wanted a premium of 80 per cent, which the NMDC did not agree, the sources said, adding that the state was losing GST, royalty, premium, economic activities around Donimalai and employment opportunities to the people working there.
'The renewal (of Donimalai iron ore mining) was pending since 2018 after the completion of 50 years.
Now we are going to take a decision within three months,' Joshi told reporters here after a high level meeting with Chief Minister B S Yediyurappa and ministers and officials of the Karnataka government.
He added that on the request of the Chief Minister, a committee led by the mining secretary will be formed.
'The concerned stakeholders, for example in Donimalai the mining is in the custody of the ministry of steel, there will be a representative of the ministry of steel along with the representative from the Karnataka government.
That committee will take a judicious view on what basis the PSUs should pay the premium,' Joshi said.PTI GMS BN WELCOME BN WELCOME