The state government has set up a cabinet sub-committee to look into the problems and issues plaguing the mining industry in the state.
The cabinet has already discussed in detail various issues connected with the mining and the government is keen on solving them, said T B Jayachandra, minister for law and parliamentary affairs and human rights.
Addressing a one-day conference on mining in Karnataka organized by Assocham, here today, the state government would take all possible steps to restore mining operations despite legal constraints.
He also indicated that the government would take into consideration the industry's suggestion on identifying mining areas in both the revenue and forest lands, so as to avoid setting up of any other industries on such land.
He emphasized on the need for value addition to iron ore so as to generate employment in the state and to add to the exchequer.
Speaking on the occasion, Tushar Giri Nath, Secretary, mines, government of Karnataka said they were taking every possible measure to ensure resumption of Category A and B mines so as to meet the raw material requirements of the steel industry.
He said that the state government was also trying to upgrade infrastructure in areas around mines so that more licenses may be granted and production of ore may be scaled up. Vinod Nowal, Chairman, Assocham Southern Region Task Force on Manufacturing highlighted the problems faced by steel and allied industries due to shortage of iron ore caused by the ban on mining.
He said that while requirement of steel industries dependent on Karnataka for iron ore is 36 million tonnes, the amount of iron ore approved by Supreme Court is 30 million tonnes.
Out of this, present availability was just 18 million tonnes, which is merely 50 per cent of the requirement.
He called for a proactive approach to smoothen the sector so that availability of iron ore may be increased.
Nowal also drew attention towards imposition of Forest Development Tax (FDT) at the rate of 12 per cent by the state government.
He added the cost of manufacturing steel in the state was higher than other states as a result of the tax being applicable only in Karnataka.
Though the matter was in court, he urged the government of Karnataka to review the levy and drop it in the interest of industry that was contributing heavily towards state exchequer.
