Karnataka forest department demands KIOCL to return land, pay Rs 1,349 crore in dues

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BENGALURU: After initiating the process of recovering forest land from HMT, the forest department is now working on taking back land and seeking due compensation from another public sector undertaking -- Kudremukh Iron Ore Company Ltd (KIOCL). Forest Minister Eshwar B Khandre on Wednesday told reporters that communication between the department and KIOCL have intensified. The firm has to pay the forest department Rs 1,349.

53 crore and hand over 1,334.33 hectares of forest and revenue land to the state government. “There is no question of the state government playing politics with the central government.



We have communicated to the Centre and KIOCL that the latter is yet to clear the dues and penalty. The firm not just has to pay for utilising forest land for mining but also for submerging 340 hectares of forest land by raising the Lakhya dam’s height,” he said. Referring to the statement made by Union Minister H D Kumaraswamy that KIOCL has already paid Rs 500 crore, Khandre said this is not enough.

“KIOCL has to return the land as per the calculation of the Central Empowered Committee and pay compensation as per rules.” KIOCL has put forth an offer that the government allow it to carry out mining in Devadari Hills, and from the profits earned, the amount can be paid. But this is not acceptable, he said.

“Devadari Hills is a virgin forest patch and it cannot be given for mining. Like any other mining company, KIOCL should participate in mining auctions.” Khandre added that this offer is similar to HMT’s, which contended before the Supreme Court that since the company is bankrupt, the forest land in contention, worth Rs 14,300 crore, should be denotified so that it can be sold to pay back the money.

“I agree that the state government had cleared KIOCL’s proposal. But the file is stopped as they have to clear long pending dues, penalty interest and return land for afforestation,” Khandre said. A senior forest official said it has also been proposed to KIOCL to purchase and hand over 670 hectares of land for the Hubbali-Ankola railway line.

“KIOCL is not accounting for 53 hectares of forest land that was lost laying pipes. The firm used 393 hectares of land for mining,” the official said. Interestingly, the issue of the two PSUs was raked up with the forest department after it was raised by Kumaraswamy.

Khandre asserted that the issues were not political. “They are forest land. Some government officials have erred in the case of HMT.

Inquiry orders have been issued. In the case of KIOCL, Kumaraswamy as a Union minister can help the Karnataka government get due compensation which will be used for afforestation and enhancing the state’s green cover,” Khandre said..