It would be carved out of Social Welfare Department which was taking care of welfare and development programmes of backward classes and tasked with administrative control of certain corporations.
The decision was taken at a Cabinet meeting chaired by Chief Minister D V Sadananda Gowda.
As per the 2011 census, the state had a total population of 6.11 crore of which SCs, and STs comprised 1.4 crore, while 90 per cent of the remaining 4.7 crore come under different backward classes, according to Law and Parliamentary Affairs Minister S Suresh Kumar, who briefed the media.
In the 2012-13 state budget, the Government provided a grant of Rs 990 crore for various development and welfare programmes of backward classes.
The Cabinet also gave the nod for amending the Karnataka Land Revenue Act, 1964, to allow regularisation of unauthorised houses in government land constructed before January 1 this year.
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But regularisation would have to meet certain conditions. Houses constructed on roads, forest land and areas meant for civic amenities, among others, would not be allowed to be regularised.
Till now, houses constructed before April 14, 1998, could be regularised.
However, Suresh Kumar said the regularisation of such houses is beyond the limits of urban local bodies.