Bengaluru, Mar 14 (PTI) Karnataka Minister for Forests Eshwar Khandre told the Legislative Assembly on Friday that the government would consider granting Devadari forest land in Sandur, Ballari district, to the Kudremukh Iron Ore Company Limited (KIOCL) for mining, provided it pays for its past violations in Kudremukh national park.
Responding to a question raised by BJP MLA Bharath Shetty during the "calling attention" session, the minister said he would convene a meeting to address the issues while also noting that the matter is currently before the High Court.
The MLA had urged the government to save KIOCL, which employs around 1,000 people, and repeatedly requested the minister to hold a meeting to resolve the concerns.
"KIOCL sought permission to mine 401 hectares of forest land in Sandur in 2020 and applied through the Parivesh portal, which was later approved by the central government. The company also applied for Stage 2 clearance and paid for compensatory afforestation and Net Present Value (NPV) charges before receiving final approval," Khandre said.
While approving Stage 2, the Centre imposed certain conditions, he said.
"KIOCL had previously violated several rules while mining in the state and was served notices. The company damaged 340 hectares of forest for the Lakya Dam and used an additional 465 hectares of forest land for installing a slurry pipeline and other infrastructure in Kudremukh National Park," Khandre added.
The minister stated that for these violations, KIOCL must pay Rs 142 crore to the forest department for environmental damage, Rs 628 crore in NPV charges along with interest, and Rs 72 crore for compensatory afforestation and its maintenance, among other penalties.
He said, "We have already issued a notice to them, stating that they must pay Rs 904 crore to the forest department. In total, considering the NPV charges, other penalties, and a penal interest of 18 per cent, KIOCL owes approximately Rs 3,000 crore."
Noting that the forest area in Sandur, where KIOCL plans to carry out mining, is a "virgin forest" that would require the felling of thousands of trees, Khandre said, "Once the company clears all outstanding payments, the department will consider granting the forest land for mining."
He added, "However, KIOCL has challenged this in the High Court, and we will await the court's decision."