In a major setback to the ore mines in Karnataka, the Supreme Court has deferred its verdict whether to lift the iron ore mining ban. The SC had deferred its verdict several times in the past and is now slated to decide it on April 20, 2012.
Presently, state-owned NMDC is the only company permitted to mine in the southern district of Karnataka wherein others were banned following irregularities exposed in 2011. The SC had banned companies citing environmental concerns. NMDC is allowed to mine only 1 million tonnes of ore from its captive blocks.
In 2011, the illegal mining scam broke out which brought Bellary district of Karnataka to the centrestage. The scam coerced then Chief Minister Yedduappa to put down his resignation after admitting to an illegal iron-ore export racket at Belekeri Port involving 35 lakh metric tonnes of iron ore. Besides Yedduappa, Janardhana Reddy, a former minister in the BS Yeddyurappa government, Galli Janardhana Reddy and B V Sreenivas Reddy were booked for illegal mining in the state.
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