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Govt. to open up mineral sector partially

By Our Special Correspondent

THIRUVANANTHAPURAM OCT. 8. The Kerala Cabinet on Tuesday decided to partially open up the mineral sands sector for private investment.

The Chief Minister, A.K. Antony, told presspersons after a Cabinet meeting that joint sector projects for exploitation of the mineral sands of the State would be considered provided the factories manufacture valued-added products. No foreign direct investment would be allowed.

The Chief Minister said the lease rents for the sand deposits would be increased.

The existing mining sites of the Indian Rare Earths and the Kerala Minerals and Metals Limited up to the Kayamkulam estuary would be reserved for them. However, rates would go up for them too. None would be granted leases for mining alone.

Mr. Antony said the State Industries Development Corporation would consider proposals from all interested parties on setting up factories in the joint sector. The corporation would send it for Cabinet approval with its recommendations.

He said the leasing of mineral sand deposits would be done only on the basis of expert advice. The Directors of Mining and Geology and the Centre for Earth Science Studies would be asked to report on the availability of the resources and the quantum that could be exploited.

He said the autonomous research institutions under the Science, Technology and Environment Department would be brought under a Science Council. The reconstitution would take place in four months with M. S. Valiathan as the Director General of the council.

Captive power generation: The Chief Minister said the captive power generation would be allowed in the State on a massive scale.

Liberalised guidelines for establishing captive units by private agencies and the Cabinet had approved public sector units.

The Government proposed to bring about accountability in the use of power by the Government departments and public sector units. They would be required to pay electricity bills from their own funds from January 1. If this were not done, supply would be disconnected. Reforms were proposed in the State Electricity Board also.

It permitted the State Film Development Corporation to set up a film video park, theme park and family entertainment unit. The corporation itself would raise the money for the project, Mr. Antony said.

An asset renewal programme, he said, would be carried out for maintenance of various institutions entrusted to the local self-governments. These institutions are now in a state of disrepair as the local self-governments were short of funds. Assistance from the Asian Development Bank would be used for this.

Mr. Antony said a Bill would be brought to cap Government guarantees for loans taken by public sector units and other agencies to a maximum of Rs. 14,000 crores.

The appointments to the Coir Workers Welfare Fund Board would be entrusted to the Public Service Commission.

The number of seats for B.Sc. (Nursing) courses would be increased from 30 to 50 if the institutions offering the courses have the requisite facilities.

He said that the Government was considering the all legal aspects about release of the PDP leader, Abdul Nasir Maudany, on parole.

Asked about the special branch police spying on the Congress leader, K. Karunakaran, the Chief Minister said police would not be allowed to overstep their limits.

However, the special branch would be required to carry out its duties and do the necessary work.

Asked about the prosecution not opposing the bail application of Shobhana George, MLA, in the forgery case, Mr. Antony said the investigating agencies had been given a free hand with respect to the investigation and conduct of the case.

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