The Hindu Business Line : Govt plans alternative measures to keep KIOCL functional

An expert committee under the Principal Secretary, Department of Industries and Commerce, is working out a plan to revive or restructure the State-owned NGEF as directed by the High Court, the Minister said.

Mr P.G.R. Sindhia, Minister for Industries, Finance, and Planning

Bangalore , Jan. 5

THE Karnataka Government will try to work out an alternative within 10 days to keep Kudremukh Iron Ore Company Ltd (KIOCL) going.

Among the options to be discussed and approved by the State Cabinet shortly is grant of mining lease in another area in the State, said the Minister for Industries, Finance, and Planning, Mr P.G.R. Sindhia, today.

KIOCL, a Central PSU, had to end its 30-year-old operations in mines in the Western Ghats on December 31, 2005 following the Supreme Court's verdict on a petition moved by environmentalists. Alternatively, KIOCL has sought mining licences in other north Karnataka locations.

Mr Sindhia told newspersons that the State Government did not want the company to shut down, in the interest of its 2,000 regular and 1,000-odd contract workers.

Mr Sindhia also said that starting from today, he had begun the pre-Budget dialogues with various Departments and associations in preparation to the 2006-07 Budget.

Between January 5 and 18, discussions have been lined up with at least 14 departments, trade and industry bodies such as CII, FKCCI, and GMCI; excise contractors and distillers' associations, economists, academicians, builders, bankers, farmers' associations, NGOs, consumer and citizens' forums, among others. The Budget itself is slated for presentation in early March.

Mr Sindhia said that revenue collection in December 2005 had touched a record Rs 1,720 crore compared to the monthly average of Rs 1,600 crore.

Nearly 5,000 vacancies in health, family welfare, and traffic police departments would be filled at an additional expenditure of Rs 60 crore.