Karnataka aiming to develop infrastructure for steel industries

Karnataka aiming to develop infrastructure for steel industriesThe state government in Karnataka is planning to develop basic infrastructure to help establish a steel industry in three districts with an investment of Rs 15,000 crore during the next four to five years.

The government is looking to improve existing infrastructure in Bellary, Chitradurga and Tumkur. The areas already host several steel plants and iron ore mines and the new development will give a boost to the industries. The government is also planning to launch a special purpose vehicle for developing the infrastructure in the area.

HR Srinivasa, director of department of mines said, "We've been collecting 10% of revenue as royalty from steel companies and iron ore mines. So far, we've collected Rs2,500 crore and are expecting to collect Rs800 crore every year. All this money will be utilised for the development of infrastructure at the three districts."

He admitted that the industry had suffered a lot due to the actions of the unscrupulous miners. He pointed out that it is the time for to take some positive steps to compensate for the negative climate int eh industry from the previous two years.

He was speaking at a conference titled, `Ore team's second annual conference on Karnataka: Past, present & future.'