In a relief for state-owned National Mineral Development Corporation (NMDC) Ltd, the Supreme Court on Thursday permitted the company to reclaim half of the monetary contribution it made to Karnataka Mining Environment Restoration Corporation (KMERC) from 2019 onwards, reported Live Law.

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NMDC, which runs the Kumaraswamy mine in Karnataka, currently pays 20 percent of the sale value of the iron ore as a contribution to KMERC. The apex court ordered KMERC to reduce the contribution to 10 percent.

According to an interim order passed by the 3-judge bench, KMERC must return to NMDC the collection to the extent of 10 percent of the sale, Live Law said.

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In 2014, Supreme Court had directed the Karnataka state government to form KMERC, a special purpose vehicle (SPV), for the execution of a Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ) in the districts of Ballari, Chitradurga, and Tumkuru over a period of 10 years.

The objective of the corporation is to draw and implement a comprehensive plan for the socio-economic development of the mining-impacted zone of Ballari, Chitradurga, and Tumkur through various developmental schemes such as environmental restoration, agriculture and allied activities, irrigation, drinking water, sanitation, and rural roads, health, education, development of the vulnerable community, housing, skill development, and tourism.

First Published:Feb 23, 2023 4:49 PM IST