K'taka to provide alternative mines to KIOCL soon

Public sector Kudremukh Iron Ore Company Limited (KIOCL) will soon get a new lease of life as the state government is likely to allot new mines to the company.

The company has already halted its mining activities at Kudremukh in Chikmagalur district from December 31, 2005, following a Supreme Court order a few years ago.

The company has already made an application to the government seeking allotment of a mining site at Ramanadurga in Bellary district. The state Cabinet will discuss KIOCL's application at the next meeting and decide in 10-15 days, minister of finance, industry and infrastructure P G R Sindhia said.

Addressing a press conference here on Thursday, he said, "We don't want the company to close its operations in the state. We will make the necessary arrangements to save the company."

When asked if the government is providing an immediate relief to the casual workers of the company, who are jobless, Sindhia said the government is working out what exactly has to be done.

As regards the revival of the state-owned NGEF, he said that a committee of experts under the leadership of principal secretary, department of commerce and industries, has been formed to prepare a revival package for the company.

"Once the proposal is ready it will be discussed and debated by the Cabinet sub-committee and submitted to the high court," he said.

Sindhia, who holds the finance portfolio, said he has kick-started the preparations for the forthcoming state budget and will hold pre-budget meetings with various department heads, trade unions, farmers' representatives, ministers, ex-finance ministers and non-government organisations to seek their suggestions to be incorporated in the budget which will be presented in March.

He has appealed to all those concerned with the budget-making process to suggest ways to improve the overall system and revenue collection, and cut the leakage of funds.

The government will ensure the proper utilisation of funds allocated to various departments in the budget for the current fiscal. The finance department has released Rs 200 crore in addition to Rs 500 crore towards supplying subsidised rice at Rs 3 per kg to yellow card holders.

Sindhia said that the finance department has approved the proposal to fill up 3,450 vacant posts in the department of health and family welfare, 5,436 posts in the Karnataka State Road Transport Corporation and Bangalore Metropolitan Transport Corporation and 992 posts of traffic police constables for Bangalore city.

The government will incur an additional expenditure of Rs 60 crore annually towards the new recruitment in the police and health department, while the KSRTC and BMTC will bear the cost from their internal resources, he added.