Tue Sep 10 17:14:12 UTC 2024: ## Karnataka Government Halts KIOCL’s Iron Ore Project Amid Environmental Concerns
**Bellary, Karnataka:** The Karnataka State government has halted the transfer of forest land for KIOCL’s ₹1,500 crore Devadari iron ore project, citing environmental concerns. This decision has sparked a clash between the state and the Union government, with Union Steel Minister HD Kumaraswamy expressing his commitment to resolving the issue and securing necessary clearances for the project.
The project, which involves setting up a 2 MTPA captive iron ore mine and a beneficiation plant, was initially approved in January 2017. However, the Congress-led Karnataka government reversed its decision in June, citing concerns about the impact on the environment and the potential loss of over 1 lakh trees.
The state government also expressed concerns about KIOCL’s alleged poor track record at its Kudremukh operations. While KIOCL has argued that the concerns are related to previous activities and not the Bellary project, the Karnataka government remains adamant about protecting the environment.
Despite the setback, Union Steel Minister Kumaraswamy has initiated discussions with the state government, aiming to resolve the issue and ensure the project’s resumption. KIOCL has stated that the project is crucial for their operations, as they haven’t had an operational captive ore mine since 2006.
The Devadari project, if successful, could generate 30 mt of ore during its 50-year lease period. However, the environmental concerns and the ongoing negotiations between the state and central governments have cast a shadow over the project’s future.
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