KIOCL Agrees to Pay ₹1,349 Crore Fine to Restart Mining

Kudremukh Iron Ore Company Ltd. (KIOCL) has agreed to key conditions set by the Karnataka government and the Supreme Court-appointed Central Empowered Committee (CEC) to expedite its proposal to mine 1,196.17 acres in the Swamimalai block forest of the Devadari hill range in Ballari district.

Forest Minister Eshwar Khandre announced that KIOCL must pay ₹1,349.52 crore in penalties and hand over 3,300 acres of land to the state before receiving final approval. As part of the agreement, the company will transfer 282.44 acres to the Forest Department prior to obtaining working permission and has consented to hand over all Kudremukh township buildings to the government at zero book value.

KIOCL will also apply for forest and wildlife clearances for 973.15 acres, including 840 acres that were submerged due to the unauthorized raising of the Lakhya dam’s height. The company will provide compensatory land for this area.

Additionally, a transit fee of nearly ₹10 crore will be paid for transporting iron ore. Final decisions regarding pending dues, regulatory approvals, and compliance will rest with the state government.

KIOCL had ceased operations in Kudremukh in 2006 following a Supreme Court order related to environmental concerns.

News by Rahul Yelligetti.