The Ministry of Environment and Forests (MoEF) impact assessment division has shelved two major projects of India Cements and JSW Cements. The projects proposed to take up limestone mining and set up cement manufacturing units in the backward district of Kalaburgi. While the project cost of JSW was Rs 2,036 crore, India Cements was planning to invest Rs 150 crore.
This has come as a major jolt to the Karnataka government, which is looking to attract investment.
Giving reasons for setting aside the India Cements project, the MoEF report said: ´The proposed project area involves the diversion of agriculture area utilised mostly for pulses production. In addition, mining activities would also alter the water and moisture regime of the area, affecting nearby agricultural fields, and hence will have adverse impact on agricultural productivity in an area larger than the project area.´