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Karnataka Cabinet accords nod to NMDC to begin mining at Donimalai

Wednesday, 16 Sep 2020
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The Karnataka Cabinet has cleared application of NMDC to commence mining operations at Donimalai. 
The State Cabinet decided to offer on lease 600 ha at Donimalai located at Sandur taluk in Ballari district, provided the company clears royalty dues of around Rs 500 crore, and a new lease amount of Rs 670 crore to be paid over a year. 
The Karnataka government cleared the proposal following the Ministry of Mines request to clear the NMDC mining lease applications. 
Union Minister for Mines Pralhad Joshi held detailed discussions with the state government for Donimalai mine, which has a capacity of seven million tpa. 
The Cabinet also approved higher borrowings by the state as per the Central government’s guidance to bridge the gap or shortfall in GST collection due to the COVID-19 pandemic. 
Earlier, the state government had a cap of three percent of the Gross State Domestic Product (GSDP) for borrowal. With the approval, the state gets an additional two percent. 
The state government so far has borrowed around Rs 47,000 crore. The state can now borrow an additional amount of around Rs 32,000 crore. The amount will be used for developmental works which are pending due to shortage of funds.
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