This story is from September 15, 2021

Karnataka: Ballari district may get lion’s share of mining relief fund

The government may award a major chunk of the Rs 15,000 crore mining compensation fund to taluks of Ballari, and this could come at the expense of the new district of Vijayanagara.
Karnataka: Ballari district may get lion’s share of mining relief fund
The new fund share may boost development of Ballari, which lost tourism revenue accrued from Hampi to Vijayanagara.
BENGALURU: The government may award a major chunk of the Rs 15,000 crore mining compensation fund to taluks of Ballari, and this could come at the expense of the new district of Vijayanagara.
According to officials privy to the issue, the fund share could be 67 per cent for Ballari and the rest for Vijayanagara, largely, because assessment of ecological damage due to illegal mining indicated that it happened mostly in Sandur and Ballari taluks of Ballari district and not Hospet in Vijayanagara district.

images (6)

Anticipating trouble, chief minister Basavaraj Bommai pushed the division of funds till 2023-24. At a recent meeting of the Vijayanagara district formation, he said the current action plan under Karnataka Mining Environment Restoration Corporation (KMERC) and District Mineral Fund (DMF) will continue for the next two fiscals.
The new fund share may boost development of Ballari, which lost tourism revenue accrued from Hampi to Vijayanagara. An official said: “As per a previous directive, the erstwhile district of Ballari was affected by mining. Accordingly, Vijayanagara will get a smaller portion of the fund.” Ballari has Rs 13,378 crore under KMERC which has 12 categories. As per the revised plan, Ballari will get Rs 8,968 crore and Vijayanagara Rs 4,415 crore. The government may divide DMF in the same ratio, with Ballari getting Rs 670 crore and Vijayanagara Rs 330 crore.

Vijayanagara, banking on funds for development of Hospet, Kudligi and Hagribommanahalli taluks where mining caused significant ecological and social imbalance, may struggle financially under the new fund share regime. While Kudligi and Hagribommanahalli faced marginal impact, Hospet saw heavy damage as 80 per cent of iron ore drawn from Sandur went to a major steel manufacturer in the region.
“Based on this assessment, we decided to give smaller share of the fund to Vijayanagara,” said an official.
author
About the Author
Sandeep Moudgal

Journalist by profession, 15 years in the field with Politics and Policy as forte. He is an Assistant Editor with Bengaluru bureau and Karnataka as his jurisdiction. Has a Masters degree in Ancient History and Archaeology from Mysore University along with a PGDJ from the Asian College of Journalism.

End of Article
FOLLOW US ON SOCIAL MEDIA