The Governor observed that the proposed The Mineral Rights and Mineral Bearing Land) Tax Bill would 'transgress' constitutional limitations and provisions, and 'adversely affect' legitimate interest of other state or its people.
Governor’s decision follows concerns raised by mining associations in the state regarding certain clauses in the bill.
Karnataka Law and Parliamentary Affairs Minister H K Patil said no case was registered against these companies for alleged irregularities and other violations
Iron ore supplies in Karnataka have not picked up since the Supreme Court lifted the ban on mining 4 months ago. National Mineral Development Corporation (NMDC), may see production capacities cut by half.