CEPMIZ PROJECT

IMPLEMENTATION MANUAL

Karnataka Mining Environment Restoration Corporation

March 2023
1
2
3
4
Table of Contents

1 Introduction ..................................................................................................................................... 7
1.1 Purpose & Scope of this Manual............................................................................................. 7
1.2 Background ............................................................................................................................. 7
1.3 Establishment of Special Purpose Vehicle ............................................................................ 15
1.4 Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ) .............................. 16
1.4.1 Hon’ble Supreme Court Approval, dated 21.04.2022................................................... 17
1.4.2 Appointment of Oversight Authority ............................................................................ 17
1.5 Funds allocated to various sectors & sub-sectors ....................................................................... 18
2 Identification of priority projects and approval by the Hon’ble Oversight Authority .................. 20
2.1 CEPMIZ Plans for three Districts and list of mining affected villages ................................. 20
2.2 CEC Guidelines for granting approval to the proposals ....................................................... 21
2.3 Oversight Authority approved procedure for CEPMIZ Project Approval and Implementation
23
2.3.1 Procedure for approval and implementation of Projects under CEPMIZ ..................... 23
2.3.2 Prioritizing the project proposals .................................................................................. 24
2.3.3 Review of the projects at the District level ................................................................... 26
2.3.4 Review of the project at the Department level .............................................................. 26
2.3.5 Scrutiny of the projects by KMERC ............................................................................. 26
2.3.6 Preparation of Detailed Project Reports (DPRs) ........................................................... 27
2.3.7 Approval of DPRs by KMERC ..................................................................................... 28
2.3.8 Implementation by Line Department/ Implementing Agencies .................................... 29
2.3.9 Other Considerations..................................................................................................... 30
2.4 Proposals are put in public domain ....................................................................................... 30
2.5 Formats for submission of proposal to KMERC................................................................... 31
3 DPR: Preparation & Technical Scrutiny ....................................................................................... 33
3.1 Updated Guidelines for DPR Preparation as on 13/12/2022 ................................................ 33
3.2 Other considerations for DPR preparation ............................................................................ 37
3.3 Formats for drafting the DPR................................................................................................ 40
4 Appraisal of DPR and Administrative Approval of the projects under CEPMIZ ......................... 41
4.1 Project Appraisal Committee ................................................................................................ 41
4.2 Administrative Approval of the DPRs .................................................................................. 43
4.3 Project and DPR Submission at a Glance ............................................................................. 44
5 Transparency Measures................................................................................................................. 45
5.1 Publishing the CEPMIZ Plan ...................................................................................................... 45

5
 5.2 Placing of approved project details in public domain ................................................................. 45
5.3 Procedure for approval and implementation of the projects under CEPMIZ ............................. 46
5.4 Publishing decisions /minutes of the Oversight Authority meetings .......................................... 46
5.5 Publishing all approvals/ fund releases ....................................................................................... 46
6 Project implementation & Monitoring .......................................................................................... 47
6.1 Work Management................................................................................................................ 47
7 Project Governance & Management and Concurrent Monitoring ................................................ 54
7.1 Project Governance and Management .................................................................................. 54
7.2 Project Monitoring ................................................................................................................ 55
7.2.1 At the Implementing Agency level: .............................................................................. 56
7.2.2 At the KMERC level ..................................................................................................... 56
8 Financial Management .................................................................................................................. 58
8.1 Financial Management Guidelines: ...................................................................................... 58
8.2 Bank Operation Guidelines ................................................................................................... 59
9 Internal / External / AG Audit of the Expenditure ........................................................................ 62
9.1 Internal Audit- through Audit officers/Chartered Accountancy firm ................................... 62
9.2 AG Audit- through Accountant & Auditor General ............................................................. 62
9.3 Social Audit- through Gram Sabha ....................................................................................... 62
10 Post-Project Sustainability ........................................................................................................ 63
11 CEPMIZ Management Information System (CEPMIZ-MIS) ................................................... 64
12 Annexures ................................................................................................................................. 51
12.1 Annexure 1 - Supreme Court Order approving CEPMIZ in-principle, dated 21.04.2022 ........ 51
12.2 Annexure 2 - List of mining affected villages* .................................................................... 57
12.3 Annexure 3 – Help notes for DPR preparation. .................................................................... 66
12.4 Annexure 4 - Project at a Glance .......................................................................................... 75
12.5 Annexure 5 - Project stakeholder assessment ....................................................................... 77
12.6 Annexure 6 - Risk management strategy .............................................................................. 78
12.7 Annexure 7 – Project Information Board (PIB) .................................................................... 79
12.8 Annexure 8 – Conditions for Administrative Approval ........................................................ 80
12.9 Annexure 9 – Constitution of Project Appraisal Committee at KMERC ............................. 84
12.10 Annexure 10 – CEPMIZ DPR Preparation Guidelines issued by the Forest Department 87
12.11 Annexure 11 - Order regarding Delegation of Administrative Approval ......................... 90

6
1 INTRODUCTION

1.1 Purpose & Scope of this Manual

The purpose and scope of handbook is:

 To provide background of KMERC and CEPMIZ for the mining affected

districts of Karnataka.

 To provide all the processes and guidelines for proposing, obtaining

approvals and implementing and monitoring/evaluation of projects under
CEPMIZ, along with financial management and use of the CEPMIZ MIS
in this regard.

1.2 Background

A. In its report dated 13.02.2012, the Central Empowered Committee (CEC) had
recommended that the CEPMIZ to be prepared by ICFRE and listed the
content to be included in the Comprehensive Environment Plan for Mining
Impact Zone (CEPMIZ) for the areas surrounding the mining leases, including
non-working leases, to provide for short term measures as well as long term
measures. The composition, as recommended by the CEC to be included are:
a. Bio-diversity Conservation Plan
b. Afforestation and Soil and Water Conservation Plan
c. Physical Infrastructure Development Plan for improving the
quality of the existing roads, construction of new roads,
railway siding, railways connectivity, aerial transportation,
water and power infrastructure etc. and associated techno-
feasibility studies.
d. Social Infrastructure Development Plan for schools / colleges,
hospitals, skill training institutes, livelihood etc.
e. Regional Monitoring Plan and Mechanism.

B. Based on the report filed during March 2012 by the Central Empowered
Committee (CEC), Hon’ble Supreme Court in its interim order dated
28.10.2012 had directed the State to prepare a “Comprehensive Environment
Plan for Mining Impact Zone (CEPMIZ)” for the districts of Ballari,
Chitradurga and Tumkur in order to restore the environmental damage caused
in the area by illegal and reckless mining on a very large scale and to ensure

7
 that the environment in the area may not suffer from any such abuse and
destruction in future.

C. Ld. Amicus Curiae, in his note dated 27th September 2012 submitted to the
Hon’ble Supreme Court, had suggested setting up of a Special Purpose
Vehicle (SPV) for the purpose of implementing CEPMIZ, as an ameliorative
and mitigative measures around mining leases in the districts of Bellary,
Chitradurga and Tumkur. He further stated that a detailed scheme containing
the details of the works to be undertaken, process of selection of implementing
agencies, accounting procedure and other details of CEPMIZ may be directed
to be prepared and submitted to this Hon’ble Court by the State of Karnataka,
in consultation with the CEC within four weeks.

D. Hon’ble Supreme Court in its Order dated 28.09.2012 had directed Central
Empowered Committee to submit a detailed report in regard to the larger
reclamation and rehabilitation program to be undertaken by the SPV.

The Central Empowered Committee vide its report dated 10th October
2012 submitted a detailed scheme with details of the proposed Comprehensive
Environment Plan for Mining Impact Zone (CEPMIZ) for Ballari, Chitradurga
and Tumkur districts to Hon’ble Supreme Court.

As per the scheme proposed, the CEPMIZ was to provide for:

[Link] measures in the mining impact zone,

[Link] measures for socio-economic development,
[Link] development,
iv. forest and wildlife conservation,
v. health, education and other measures to ensure inclusive growth of the
project area and
vi. an effective monitoring and evaluation mechanism.

E. The Hon’ble Supreme Court in in its order dated 02.05.2014 had directed the
State Government to form a company under section 25 of the Companies Act,
1956. State Govt., in its order [Link] 121 MMM 2014 dated 21.06.2014, had
issued an order to establish the Corporation and accordingly the KMERC was
registered on 30.6.2014, as a non-profit company under Companies Act 2013
for taking up the implementation of the CEPMIZ.

8
F. The draft CEPMIZ was developed after a series of meetings on 06.01.2016,
20.02.2016, 11.03,2016, 30.03.2016, 02.04.2016, and 4.04.2016 chaired by
the Additional Chief Secretary & Development Commissioner and
Chairperson, KMERC with departmental heads, Deputy Commissioner
Bellary, Managing Director of GTTC, Railway authorities etc.

Consultations were also held at district level; in the meetings held on 16th
April 2016 in Bellary, 17th April 2016 in Chitradurga and Tumkur, which
were chaired by the respective District In-charge Ministers and Minister of
Mines in the presence of district MLAs, MLCs and MPs.

On the IA filed by State Government and the CEC report dated: 29.04.2016,
Hon’ble Supreme Court on 21 .03 2017 has held as hereunder:
“the CEPMIZ, is really in the nature of a vision document with all
concrete measures, steps and proposals left to be worked out at a
later stage i.e., the stage of preparation of the detailed project
reports, so far as the socio-economic measures are concerned,
very broadly and roughly speaking, the different heads under
which restoration and reclamation work is proposed to be done,
subject to final details being worked out later, appears to be
sufficiently comprehensive.”

 On 07.12.2017, based on the report of CEC dated 25th October 2017, Hon'ble
Court ordered KMERC to submit DPRs as well as budgetary and financial
requirements in respect of 3 sidings and 2 sub-lines and for setting up of the
Conveyor belt systems by 6 lessees in Ballari and Chitradurga districts.

 On 21.03.2018 Hon’ble Supreme Court ordered the State/KMERC for:

1) Submission of revised comprehensive all-inclusive CEPMIZ.
2) Conducting detailed study on requirement of Railway Backbone, required
to support mineral bearing region of 3 districts.
3) Proposal relating to road infrastructure needed to support mining activities.

 In view of the above, a meeting was held by ACS & Development

Commissioner on 21.04.2018, wherein, it was advised the Deputy
Commissioners and CEOs of the Zilla Panchayats of the three districts and
FIMI to list out the works that could be implemented immediately.

9
 Further, CEC held a meeting on 07.06.2018 in Bangalore and reviewed the
progress of the preparation of Comprehensive Environment Plan for Mining
Impact Zone (CEPMIZ). It directed to consider the observations of the FIMI
(South Region) submitted to the Hon’ble Court in its affidavit dated
12.08.2016 in I.A. No.247 of 2015.

 As per the directions, a draft CEPMIZ was prepared and presented before the
CEC meeting held on dated 21.08.2018. Further, CEC has made few
suggestions / observations on the draft report.

In this regard, a meeting was convened by ACS & Development

Commissioner and Chairperson of the KMERC with the Deputy
Commissioners of the 3 districts, Chief Executive Officers of Zilla
Panchayats, Secretary-Mines, Director-Mines & Geology on 05.09.2018 and
reviewed the district plans. ACS & DC asked the Deputy Commissioners of
the districts to revise CEPMIZ of their districts, duly keeping the plan size in
mind and prioritizing as to what is most essential, as per objectives of the
CEPMIZ and limiting the activities to the mining impact areas.

 The revised CEPMIZ was presented before the CEC in the meeting dated
20.09.2018 held at Bangalore. After detailed discussions on each sector, few
more suggestions were made by the CEC during the meeting. In view of it, the
sectoral plans were further revised by the concerned departments’ Additional
Chief Secretaries/Principal Secretaries /Secretaries in a meeting conducted on
29.09.2018 by ACS & Development Commissioner and Chairperson of the
KMERC.

 The Comprehensive Environment Plan for Mining Impact Zones (CEPMIZ)

of the 3 districts, so arrived at was placed before Karnataka Mining
Environment Restoration Corporation (KMERC) Board in its 14th Meeting
held on 06.10.2018 and based on the discussions and certain suggestions
arrived at therein, CEPMIZ Plan was further revised.

 The CEPMIZ Plan so finalised was placed before the Hon’ble Chief Minister
on 09.10.2018, in which the district in-charge Ministers of the 3 districts in
addition to Minister for Mines and Geology attended. After review and
discussion, Hon’ble Chief Minister accorded approval to the CEPMIZ Plan
for submission to Hon’ble Supreme Court.

 The State filed revised CEPMIZ through IA No. 150757/2018 with an outlay
of Rs. 24,996.71 Cr., to be implemented over a period of 10 years on
11.10.2018 before Hon’ble Supreme Court. Railway Backbone Report was

10
 also filed along with the said IA. The CEPMIZ Reports submitted to the
Hon’ble Supreme Court provides for a broad sectoral proposal for the projects
need to be taken in mining impact zones in these 3 districts of the State.

G. Further, vide para 13 of CEC Report No. 12 of 2019 dated 16.04.2019,

submitted to Hon’ble Supreme Court, recommended a mechanism for
approval of the proposals under CEPMIZ. As per this:

 “The State Government be directed to issue specific orders for

operationalization of the bank accounts for channelizing the receipts and
expenditure as done in the notification dated 29.8.2017 by the Finance
department, Government of Odisha;

 The entire amount of SPV funds currently available with Monitoring

Committee be directed to be transferred to KMERC, excluding the amount
required for meeting the committed expenditure including reimbursement
of the expenses to Central Empowered Committee as directed by this
Hon’ble Court in its order dated 23.09.2011. The future accruals in the
accounts of the Monitoring Committee shall be transferred to the SPV at
the end of each month;

 An Oversight Authority may be constituted headed by a retired Judge of

this Hon’ble Court with two members to assist him. The choice of the two
members may be left to the Hon’ble Judge.

 The Oversight Authority may be empowered by this Hon’ble Court to

approve the proposals under CEPMIZ, including all matters relating to
mining infrastructure and monitor its implementation to achieve the
objectives of creation of the SPV.

 This Hon’ble Court may grant in principle approval to CEPMIZ on the

following conditions:

o The corpus size of the SPV including the total interest generated shall
be limited to Rs.24,000 crores and as soon as the total contribution to
SPV and the total interest generated together attains the figure of
Rs.24,000 crores, the contribution to the SPV from all sources shall be
discontinued;
o Expenditure on Railway infrastructure/backbone be limited to a
maximum of Rs.5,000 crores;
o The expenditure on road infrastructure be limited to a maximum of the
Rs.2,500 crores;

11
 o The expenditure on eco restoration activities will not be less than
Rs.2000 crores;
o The remaining amount with the SPV be used for socio-economic
development of the mining affected region;
o Activities under CEPMIZ are executed within the three Districts of
Bellary, Chitradurga and Tumkur only;

 The Oversight Authority while granting approval to the proposal under

CEPMIZ may conform to the details guidelines as spelt out in
Annexure_R-6 to this Report.

H. Ld. Amicus Curie as per Hon’ble Court direction dated 24.01.2019 and
29.05.2020 submitted its note to the Hon’ble Supreme Court on 19.06.2020,
in which, on the lines of CEC Recommendations dated 16.04.2019, it
suggested -

a) Constitution of an Oversight Authority headed by a retired judge of the

Supreme Court, to be assisted by one or two officers.

b) The Oversight Authority to approve Annual Plan of Operation, approve

guidelines for preparation and approval of DPRs, monitoring and
evaluation, cost estimation & method of selection of implementing
agencies etc.

c) Work with respect to railway and road infrastructure as well as Socio-

economic development works and works for eco-restoration may
commence simultaneously.

d) The infrastructure works and projects (railway, road etc.) must primarily
be for improving the transport infrastructure for the movement of iron ore.

e) The Supreme Court may permit KMERC to secure the approval of the
Oversight Authority before implementing the projects and that,

o The expenditure on railway infrastructure may be limited to a maximum

of Rs. 5000 Cr.
o The expenditure on road infrastructure may be limited to a maximum
of Rs. 2500 Cr.
o The expenditure on eco-restoration activities will not be less than
Rs.2000 Cr.
o The remaining amount available with SPV may be used for socio-
economic development of the mining affected region

12
 o The Oversight Authority when granting approval to proposals under
CEPMIZ may have regard to the guidelines suggested by CEC at
Annexure-R-6, page 56 of the CEC Report No. 12 of 2019.

f) The implementation of CEPMIZ to be confined to the Districts of Ballari,

Chitradurga & Tumkur districts.

g) The entire amount of SPV may be transferred to KMERC and future

accruals may be transferred to the SPV at monthly interval.

I. Hon’ble Supreme Court considered approval of the CEPMIZ on 21.04.2022

and passed following orders:

“Having considered the submissions by all the concerned parties as well as

the reports of CEC dated 22.10.2018 and 16.04.2019 and submissions of Ld.
Amicus Curiae Sri Shyam Divan as recorded in the note dated 19.6.2020, it
is ordered as follows:
1. With the consent of all the parties, Hon’ble Mr. Justice B. Sudershan
Reddy, retired Judge of this Court is hereby appointed as an Oversight
Authority to oversee the works and progress carried out by the Special
Purpose Vehicle i.e., Karnataka Mining Environment Restoration
Corporation (‘KMERC’). Hon’ble Mr. Justice B. Sudershan Reddy is
requested to assume charge as an Oversight Authority as early as
possible.

2. Hon’ble Mr. Justice B. Sudershan Reddy is at liberty to take the assistance

of one or two officers of the State of Karnataka and/or retired High Court
Judges of his choice to assist him for this purpose. It is made clear that
day to day oversight is not necessary.

3. The CEPMIZ plan submitted by the State of Karnataka, as recommended

by the CEC in its reports dated 22.10.2018 and 16.4.2019 is granted in-
principle approval. Further, any modifications in the plans recommended
by CEC shall be considered by the Oversight Authority.

4. The priority of the projects and/or individual projects to be taken up and

implemented by the KMERC under the said CEPMIZ plan shall be as
decided by the said Oversight Authority.

5. The amounts as collected in terms of the orders passed by this Court in

the present matter shall be utilized by the KMERC under the supervision
13
 of the Oversight Authority in the mining affected districts of Ballari
(including new district of Vijayanagara carved out from Ballari district
vide notification dated 08.02.2021), Chitradurga and Tumkuru.

6. The SPV funds accrued, excluding the committed expenditure and

contingent liabilities including reimbursement of funds released by the
CEC to the Monitoring Committee, is hereby ordered to be transferred by
the Monitoring Committee to KMERC, for implementation of projects
under CEPMIZ. Further accruals to the SPV account in terms of the
orders of Court shall be transferred by the Monitoring Committee every
quarter to the KMERC.

7. The State Government is directed to issue specific orders for

operationalization of the bank accounts for channelizing the receipts and
expenditure as done in notification dated 29.08.2017 by the Finance
Department, Government of Odisha.

8. The Quarterly report of performance shall be filed by the SPV before the
Oversight Authority during first year and thereafter every six months.

9. In addition, having regard to the nature of the funds and quantum of funds
which are involved in the matter, the CEC may also carry out complete
on-the-spot verification about the utilization of the moneys and file a
report before Oversight Authority.

10. The Oversight Authority may consult the Comptroller and Auditor
General, the Principal Accountant General to ensure that the idle and
reserve funds may be deposited in the highest yielding risk-free
instruments/securities.

11. It will be open to Oversight Authority to approve appointment of such

auditors as he may consider appropriate or request the CAG to get a
distinct and accurate account of expenditures by the KMERC from SPV
funds.

12. The implementation of the railway infrastructure, as per the Railway

Backbone Report, including DPRs of railway sidings and sublines
submitted to this Court may be considered by the Ld. Oversight Authority
and implemented as per the requirements.
Justice B. Sudershan Reddy may submit the first report to this Court, as
and when he deems appropriate.”

14
J. Since around 4 years have elapsed since submission of CEPMIZ to Hon’ble
Supreme Court in October 2018, therefore, before initiating further action for
actual implementation, update on the status of the project components
submitted to the Hon’ble Court, as to whether the work has already been
undertaken/being undertaken under any other scheme etc., should be verified
to avoid duplication.

Therefore, in terms of the order of the Hon’ble Supreme Court, to start with
the projects proposed under the CEPMIZ are to be updated in terms of cost or
modification of the project and the priority projects to be taken up needs to be
identified and approved by the Hon’ble Oversight Authority, before
proceeding with implementation.

1.3 Establishment of Special Purpose Vehicle

The Karnataka Mining Environment Corporation (KMERC), a State Government

company is incorporated in 2014, as per the directives of the Honourable Supreme
Court of India for establishment of a Special Purpose Vehicle (SPV), to
implement/oversee the execution of the Comprehensive Environment Plan for
Mining Impact Zone (CEPMIZ).
As mentioned in the previous section, the CEPMIZ is a scheme prepared towards
undertaking ameliorative and mitigative measures in the mining affected areas of
Ballari, Vijayanagara (newly carved from Ballari), Chitradurga and Tumkuru
districts of Karnataka. CEPMIZ is proposed to be implemented over a period of
ten years.
The objective of KMERC is to oversee the implementation of CEPMIZ plan to
repair the damage caused by rampant illegal and unscientific mining, and to
restore the ecology and improve the socio-economic condition of the people in
the mining affected regions in Ballari, Vijayanagara, Chitradurga and Tumkuru
districts through execution of projects/ programs as per the CEPMIZ.
Furthermore, the newly formed Vijayanagara district has been carved out of
Ballari district through an official notification issued by Karnataka Government
on February 8, 2021. Thus, iron ore mining affected areas in Vijayanagara district
are covered under CEPMIZ.
In view of the mining belt and losses, the illegal mining has caused to the
environment and overall wellbeing of the people, 13 sectors are identified for
implementation of projects under CEPMIZ. The concerned line departments are

15
 made responsible for drafting, implementation and undertaking the monitoring/
evaluation of the projects.
The various sectors for implementation of projects under CEPMIZ are as follows:
i. Ecological restoration
ii. Agriculture and allied activities
iii. Drinking water, sanitation, and rural roads
iv. Health
v. Education
vi. Development of the vulnerable sections
vii. Housing
viii. Skill Development
ix. Tourism
x. Irrigation
xi. Physical Infrastructure
xii. Roads & Communication
xiii. Railway Infrastructure

1.4 Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ)

In compliance to the orders of the Hon’ble Supreme Court of India, Karnataka

Mining Environment Restoration Corporation (KMERC) prepared the
Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ) and
submitted to the Hon’ble Supreme Court in 2018 for Reclamation &
Rehabilitation of the 03 mining affected districts viz. Ballari, Chitradurga and
Tumkuru, which includes the newly carved out Vijayanagara district. The plan
seeks to address adverse effects of rampant mining under five broad heads
including socio-economic activities, eco- restoration, forest and ecology
activities, and road and rail infrastructure in the 9 directly mining affected taluks
particularly, 283* mining affected villages/ habitations of the Ballari,
Vijayanagara, Chitradurga and Tumkuru, districts.

Table 1: Talukas in the Districts, directly affected by Mining

Ballari Vijayanagara Chitradurga Tumkuru
Sandur Hospete Holalkere Chikkanayakanahalli
Ballari Hosadurga Tiptur
Chitradurga Gubbi
Molakalmuru**

16
* District DCs have been authorized to review the mining affected habitations
** 3 villages are identified as mining affected.

The list of mining affected villages is available in Annexure 2 and can also be
accessed at the following link under “Documents” section on the Home page of
KMERC website. [Link]

1.4.1 Hon’ble Supreme Court Approval, dated 21.04.2022

As per Hon’ble Court order dated 21.03.2018, the State of Karnataka had
submitted the CEPMIZ for 3 districts on 11.10.2018. The Central Empowered
Committee (‘CEC’) had recommended approval of the plan, with certain
modifications, vide its reports dated 22.10.2018 and 16.4.2019. The Ld. Amicus
Curiae had also submitted his note dated 19.06.2020 suggesting the appointment
of a Retired Judge of Hon’ble Supreme Court to function as an Oversight
Authority for the implementation of the plan in question.
The above said Supreme Court Order approving CEPMIZ in principle, dated,
21.04.2022 is available as Annexure- 1.

The same can be accessed under “Oversight Authority” Menu -> “Documents”
sub-menu on the KMERC website at the following link-
[Link]
nts/en

1.4.2 Appointment of Oversight Authority

The Supreme Court order vide its order dated 21.04.2022 while giving in-
principle approval to the CEPMIZ Plan submitted to the Hon’ble Court on
11.10.2018, appointed Mr. Justice B. Sudershan Reddy, Retired Supreme Court
Judge, as the Oversight Authority for approval of the individual projects and to
supervise the implementation of the projects. It was stated that selection of
projects to be undertaken by KMERC shall be at the discretion of the Hon’ble
Oversight Authority.
The Hon’ble Oversight Authority is vested with discretion to decide over any
objection or consider modifications to the plan recommended by the CEC in its
reports dated 22.10.2018 and 16.04.2019, if the line departments/ parties suggest
any modifications. He will supervise the amounts that shall be utilised by the
17
KMERC in the mining affected districts of Ballari, Vijayanagara, Chitradurga
and Tumkur. The Oversight Authority may consult the Comptroller and Auditor
General (CAG) and the Principal Accountant General to ensure that idle and
reserve funds may be deposited in the highest yielding risk-free
instruments/securities.

1.5 Funds allocated to various sectors & sub-sectors

Under the plan submitted by CEC, the funds were allocated to 13 sectors and sub-
sectors for three districts. The below table provides the amount allocated to each
sector in the districts:
Table 2: Funds allocated to each sector under CEPMIZ for three Districts.
KMERC - CEPMIZ ABSTRACT
Sl. Total
Sector/Districts Bellary Chitradurga Tumkur
No. (INR Cr.)
1 Eco-restoration
A Forestry 1557.79 540.83 500.52 2599.14
B Pollution Control 27.00 14.81 14.81 56.61
Sub total 1584.79 555.64 515.33 2655.75
2 Agriculture & allied
a Agriculture 442.45 324.85 287.10 1054.40
b Horticulture 64.73 17.06 14.03 95.82
c Sericulture 0.00 3.50 3.00 6.50
d Animal Husbandry 284.76 38.00 22.20 344.96
e Fisheries 89.99 7.63 3.75 101.37
Sub total 881.93 391.04 330.08 1603.05
Drinking Water,
3 Sanitation & Rural
Roads
a Drinking Water 2569.98 661.00 236.88 3467.86
b Sanitation 374.00 37.00 13.00 424.00
c Rural Roads 520.72 280.68 236.64 1038.04
Sub total 3464.70 978.68 486.52 4929.90
4 Health
a District Hospital 286.17 114.04 131.90 532.11
Taluka/CHC/PHC/Ayush/
b 151.17 141.90 77.77 370.84
Blood Bank etc.,
Special Medical Centre
c 301.63 301.63
Sandur

18
d Medical College Bellary 711.20 0 0 711.20
Sub total 1450.17 255.94 209.67 1915.78
5 Education
a Pri & Sec Education 413.49 280.58 186.62 880.69
b PU Education 230.00 50.00 5.66 285.66
Sub total 643.49 330.58 192.28 1166.35
Development of
6 Vulnerable
Sections
a Women & Children 398.87 94.03 110.78 603.68
b Social Welfare 200.00 50.00 51.94 301.94
c Backward Class 78.03 25.31 25.00 128.34
d Minorities Development 18.70 19.20 10.70 48.60
Sub total 695.60 188.54 198.42 1082.56
7 Housing 1027.00 106.88 60.00 1193.88
8 Skill Development 436.19 70.79 31.27 538.25
9 Tourism 148.00 34.00 7.00 189.00
10 Irrigation 799.00 154.70 53.00 1006.70
11 Physical Infrastructure 734.99 105.29 44.08 884.36
12 Roads & Communication 1512.55 620.22 426.40 2559.17
13 Railway infrastructure 5271.96
Grand Total 13378.41 3792.30 2554.05 24996.71

The Executive Summary could be accessed under “Oversight Authority” Menu

-> “Documents” sub-menu on the KMERC website at the link:
[Link]
files/CEPMIZ%20Abstract%[Link]

19
2 IDENTIFICATION OF PRIORITY PROJECTS AND APPROVAL BY
THE HON’BLE OVERSIGHT AUTHORITY

2.1 CEPMIZ Plans for three Districts and list of mining affected villages

As per Hon’b1e Supreme Court order dated 21.03.2018, the State had prepared
revised district-wise Comprehensive Environment Plan for Mining Impact Zone
(CEPMIZ) for Bellary, Chitradurga and Tumkur districts (including present
Vijayanagar district) and submitted to Hon’ble Supreme Court in 10/2018, which
have been approved in-principle by Hon’ble Court vide its order dated 21.04.2022

The concerned departments of the 13 identified sectors are required to refer to the
CEPMIZ plans dt. 11.10.2018 for drafting project proposals. The CEPMIZ plans
are comprehensive district-wise documents with sector- and sub-sector wise
details of funds and activities, which can be proposed by the respective
departments.

The district-wise CEPMIZ plans are available under “Oversight Authority” Menu
-> “Documents” sub-menu on the KMERC website as listed below:

 CEPMIZ of Ballari District Submitted to Hon'ble Supreme Court:

[Link]
files/CEPMIZ%20OF%20BELLARI%[Link]

 CEPMIZ of Chitradurga District Submitted to Hon'ble Supreme Court:

[Link]
files/CEPMIZ%20OF%20CHITRADURGA%[Link]

 CEPMIZ of Tumkur District Submitted to Hon'ble Supreme Court:

[Link]
files/CEPMIZ%20OF%20TUMKUR%[Link]

The CEPMIZ guidelines mention that mining affected villages should be

prioritized for implementation of projects under CEPMIZ. The villages in the
mining affected Districts have been categorised and 283* Villages have been

20
identified as mining-affected villages. Further, Deputy Commissioner of the
districts have been requested to review the habitations, as per ground realities.
The list of district and taluka-wise mining affected villages is available at
Annexure 2 in the Website of KMERC under the menu “Documents” and can
also be accessed at:
[Link]
files/List%20of%20283%20mining%20affected%[Link]

2.2 CEC Guidelines for granting approval to the proposals

The CEC report dated 16.04.2019 lays out the guidelines for granting approval to
the projects under CEPMIZ. The departments should strictly adhere to these
guidelines, while drafting the individual project proposal:
CEC GUIDELINES FOR GRANTING APPROVAL TO THE PROPQSAL
UNDER CEPMIZ (CEC REPORT DATED 16.04.2019: Annexure-R6)

i. setting up of new academic institutions like agricultural college,

medical college and the like shall not be included in CEPMIZ;

ii. upgradation of existing institutions by creating the state of art

facilities which would ensure quality education and skill
development should be given priority;
iii. the facilities at the existing Medical College at Bellary could be
improved so that people affected by mining and living in and
around Bellary District will be able to make use of best facilities
in the hospital;
iv. up-gradation of the Industrial Training Institutes for
development of skill required for mining related jobs be given
priority in the proposal;
v. while creating physical infrastructure for sports facilities the
construction of large stadiums around playgrounds should not
be included in CEPMIZ;

21
 vi. the roads in the mining area, and which form part of the mining
infrastructure are to be constructed as cement concrete road.
vii. it is also necessary to ensure that the movement of vehicles
carrying minerals and using roads passing through villages
should be avoided and instead bypasses should be constructed in
such location;
viii. proposals relating to road connectivity to individual mines from
the common arterial road as also proposals for roads within the
mine shall not be included in the CEPMIZ proposal;
ix. the proposals under agriculture and forestry be taken up on
watershed basis and an integrated watershed plan need to be
prepared in this regard;
x. the direct financial assistance for development of agriculture /
horticulture / animal husbandry related infrastructure should be
routed through self-help groups/cooperatives operating in the
region;
xi. under animal husbandry, the supply of goats, sheep under the
scheme is to be discouraged, as it is likely to have adverse impact
on the eco-restoration of the degraded forests;
xii. wherever feasible siltation dams should be provided at the
foothills of forest area so that during rainy season the mining
waste is prevented from flowing from the operating as well as
closed mines into the agricultural lands, water bodies and the
natural streams;
xiii. while planning for restoration of the mined area the existing
mining pits to the extent feasible should be utilized as siltation
ponds and water harvesting ponds;

xiv. prior to the taking up the eco-restoration works in the forest areas
opened up for mining the Forest Department should consult the
Mining and Geology Department so as to ensure that the mineral
resources from these lands have been fully exhausted and such
lands will not be leased out to mining in future;

22
 xv. the R&R works in respect of Category 'C" mines should be taken
up at the cost of the ex-mining lessees;

xvi. routine forest activities which are not in the nature of restoration
of eco-system are not to be included in the proposal;

xvii. the activities to be taken up within the forest area should conform
to the Approved Working Plans;

xviii. the components of proposals which do not conform to the

objectives of the CEPMIZ Scheme but are essential for the overall
development of each of the three Districts should be taken up
under the normal State Budget and the DMF

These CEC guidelines can also be accessed under “Documents” section

on the home page of KMERC website at:
[Link]
files/CEC%20GUIDELINES%20ON%20CEPMIZ%[Link]

2.3 Oversight Authority approved procedure for CEPMIZ Project

Approval and Implementation

The Hon’ble Oversight Authority approved the following procedure for CEPMIZ
project approval and implementation. All the departments are expected to adhere
to the guidelines, while drafting and submitting the individual project proposals
under CEPMIZ to KMERC.
2.3.1 Procedure for approval and implementation of Projects under
CEPMIZ

Hon’b1e Supreme Court approved CEPMIZ Plan in-principle vide its order dated
21.04.2022 and appointed Justice B. Sudershan Reddy, a retired Judge of Hon’ble
Supreme Court, as Oversight Authority, for consideration of individual projects
and further supervision of its implementation.

Around 4 years have elapsed since submission of CEPMIZ to Hon’ble Supreme

Court in October 2018. Therefore, before initiating further action for actual
implementation, update on the status of the project components submitted to the

23
Hon’ble Court, as to whether the work has already been undertaken/being
undertaken under any other scheme or the scope or costing have changed, need to
be verified before approval to the individual projects are accorded.

Therefore, in terms of the order of the Hon’b1e Supreme Court dated 21.04.2022,
to start with the projects proposed under the CEPMIZ are to be updated in terms
of cost or modification of the project to be taken up and approved by the
Oversight Authority, before proceeding with implementation.

2.3.2 Prioritizing the project proposals

List of projects/works/activities already included in the CEPMIZ need to be

reviewed by each of the Line Departments, and after comprehensive assessment
of its present requirements a list of projects, which have to be taken up for
implementation are to be drawn up. Therefore, the following action could be
taken.
a) The concerned Departments, who have submitted the proposals, are
required to identify the projects, keeping the CEPMIZ as base, which are
required to be taken up in the mining affected District on immediate /
urgent / priority basis.

As per the decision of the preliminary meeting of the Hon’ble Oversight

Authority held on 30.05.2022, all line departments and district Deputy
Commissioners are required to identify the projects, for which funding
is sought under CEPMIZ, on a short term (which can be completed
within a year), medium term (which require up to 2-3 years for
completion) or long terms projects, which require more than 3 years for
its completion.

b) Further, as per decisions of the Oversight Authority meeting held on

30.05.2022 as well as 18.06.2022, wherein certain projects were
approved, it was stressed to prioritize the projects related to Drinking
water, Health, Education, Anganwadi, Housing, Approach roads/ By-
passes in the Mining Affected villages, in addition to Eco-restoration
related projects.

c) Accordingly, as per meeting of Department Secretaries and District

24
 Deputy Commissioners by ACS&DC and Chairperson of the Company
held on 04.07.2022, it was instructed to the concerned departments to
review the projects / activities already included in the District CEPMIZ
and update the costing of those projects still needed to be implemented.
In case, the project /activity is already implemented and no longer
required, then an alternate project may be proposed with due
justification.

While proposing the projects, the financial limits of the sector and taluk,
as submitted before Hon’ble Supreme Court shall be adhered to, after
meeting the requirement of mining-affected villages.

d) All the projects by the concerned Line department shall be within the
outlay of the district and the taluk to start with. Only after the amount for
the sector is exhausted for the outlay of the taluk shown in the district
CEPMIZ, and amount in another taluk of the same sector is not required,
then only further proposals in that sector or taluk will be considered.

e) All the proposals from line departments / I.A.s shall be in project mode
and location specific: whether single or multi- location or a cluster,
landscape or watershed or a series of it. Individual works, which are not
in project mode shall not be considered.

f) All the projects must have one or more measurable outcome, against
which it should be possible to be evaluated.

g) In case the project proposed under CEPMIZ has already been

implemented under any central/ state/ DMF funds, then the project
required for the sector and taluk for saturation of the activity / objective
may be identified and proposed. E.g., If drinking water requirements are
fully provided for in the taluk, then the funds allocated for it can be
proposed for Sanitation and UGD etc. for achieving the broader
objective. Similarly, if PHCs are already upgraded and further funds are
not required, then the amount for that activity can be proposed for CHC
or Taluk Health facility.

h) Projects which are short term in nature or projects for which field data is
available, may be proposed at the earliest. Medium or Long-term projects
for which field data need to be collected before arriving as to the scope
and cost may be proposed within 1-3 month or as early as possible.

25
 i) In any case, the proposed projects must be site specific with geo-
coordinates and the outcome expected must be measurable and provide
for in the checklist for each of the project.

j) Similarly, if the project is in convergence or in continuation of any

existing project, the same should be mentioned while proposing the
project.

2.3.3 Review of the projects at the District level

The projects proposed by the Line department district officer may be reviewed by
the District Deputy Commissioner through a committee (CEPMIZ DLC)
consisting of DC, ZP CEO and concerned Line Department District Officer to
examine, whether

a. The Project is prioritized for mining affected villages,

b. There is no duplication or overlapping with any other project or scheme
/ DMF,
c. The project outlay is within the sectoral and taluk limits,
d. That the site is available or can be procured for the project

2.3.4 Review of the project at the Department level

The projects reviewed by the DLC shall be further examined by the concerned
Line Department to ensure that:
a. The proposals are in project mode, with measurable outcomes, against
which the project can be evaluated.
b. The Project is as per technical norms of the Department.
c. The department has the capacity to implement or can augment its
capacity to implement either itself or through an agency.
d. Post-project sustainability or maintenance mechanism is there.

2.3.5 Scrutiny of the projects by KMERC

a. Scrutiny of every project proposal shall be carried out by KMERC. The
initial screening shall be carried out with respect to the following:

26
 i. Whether the project proposal is as per District CEPMIZ approved in-
principle by Hon’ble Supreme Court?
ii. Whether the proposal is in project mode, site specific, with specific
justification and has measurable outcome?
iii. Whether the project proposal is as per CEC Report dated 22.10.2018
and 16.04.2019?
iv. Reasonability of the project component in terms of estimated costs,
estimated number of beneficiaries, timelines, etc.
v. Whether it is standalone project or is required to be taken up in
convergence or association with any existing project?
b. KMERC shall appraise the Board / Chairperson on the project proposal for
taking a suitable decision, as to whether to take up the project or not for
funding under CEPMIZ.
c. Reconnaissance visit to the project areas by KMERC can also be
considered, wherever necessary.
d. After the decision by the Board / Chairperson, KMERC would place the
project to the Oversight Authority for approval.
e. After approval of the project from Oversight Authority, concerned
Department / Deputy Commissioner / proposing agency will be requested
to prepare DPR and submit technically scrutinized DPR to the KMERC.

2.3.6 Preparation of Detailed Project Reports (DPRs)

Preparation of Detailed Project Reports (DPRs) would be done by the line
Department/organization. The cost of preparation of DPRs, if required, shall be
funded by the KMERC.

The DPRs will contain, inter-alia, details such as:

i. Objective
ii. Outputs and outcomes, and means of measure
iii. Detailed engineering designs, alignments and maps /sketches (wherever
applicable)
iv. Datasheets for each activity / unit cost proposed
v. Timeline for implementation / Implementation calendar
vi. Post implementation maintenance and sustainability mechanism

27
 The department concerned will also give a commitment that post
implementation, sufficient funds and manpower for maintenance and
sustainability will be ensured through the departmental budget/user fee.

2.3.7 Approval of DPRs by KMERC

The technically scrutinized DPRs submitted by the line department would be

examined by KMERC.

Based on the recommendation of the Technical Committee / PMU and the Board/
Chairperson/ MD, as the case may be, would approve the DPR and the
department/organization proposing the project would be given APPROVAL with
a unique PROJECT CODE to a go-ahead with the project and a. Implementation
Calendar and b. Quarter-wise Expenditure schedule, if already not part of DPR,
shall be sought for facilitating funds availability for its execution.

Before granting the approval to the DPR, KMERC will obtain an undertaking on
the following lines from the implementing agency to ensure smooth
implementation of the project.

i. The Department has the technical knowledge and capacity for monitoring /
supervising the implementation of the project.

ii. That the work has not been proposed / approved under any other schemes of
the Government and there shall be no duplication of works.

iii. That the proposed work does not coincide / collide with any other works being
taken up by any other Department under any other project/scheme. However,
the proposed work can be converged / supplemented with other
developmental works taken up separately by the Government/other
organizations/institutions.

iv. That implementing agency has taken steps to obtain plot/ land in case of
construction, expansion of building under the project and the same are
available for implementing the project.

v. That the agency has ensured that other resources required (e.g., availability of
power, water etc.) are also readily available or will be made available.

28
vi. The Department/organization responsible for execution of the work shall
follow a transparent and competitive bidding process through the e-
procurement portal of the Government of Karnataka for procurement,
selection of consultants / execution agencies of the Project, as per KTPP Act.

vii. The Department /organization shall be responsible for supervision of quality

and quantity measurement of the project.

2.3.8 Implementation by Line Department/ Implementing Agencies

All projects / schemes shall be implemented by the concerned proposing

departments / implementing Agency, which will call tender, issue work order,
monitor progress, make payment, and submit UC to the KMERC, along with
progress reports. In addition, the following shall also be ensured,

i. The Department/Agency shall be responsible for all payments made or

recommended by it to be made on account of the project.

ii. The Department shall prepare a detailed statement of expenditure

periodically (monthly/quarterly/annually) and submit hard copy and upload
it in the KMERC portal.

iii. The I.A. shall also carry out concurrent monitoring and evaluation of all
projects and share reports to KMERC and on its portal.

iv. The Department / IA shall nominate one of the senior officers, as Nodal
Officer for coordination with KMERC regarding progress of project
implementation and monitoring. He/she shall furnish necessary documents,
clarifications, information, reports and records to KMERC and attend its
meetings, as and when required.

The OA Approved procedure for CEPMIZ project approval and implementation

guidelines can be can also be accessed under “Documents” section on the home
page of KMERC website at:

[Link]
files/OA%20Approved%20Procedure%20for%20CEPMIZ%20Project%20Appr
oval%20&%20%[Link]

29
 2.3.9 Other Considerations
i. The focus of all project proposals should be on benefitting the weaker sections
of the society, particularly covering women, children, SC/ST, labourers,
farmers, livestock owners and other vulnerable local communities of the
mining-affected villages / areas of the four districts, in accordance with the
objective of the CEPMIZ.
ii. Line Department are made responsible for preparation of the DPRs as per its
norms and requirements. DPR can be prepared by the Line-Department
themselves either internally or taking assistance of consultants or suitable
resource persons or through an external agency/consultancy.

iii. DPR Cost will be given to the Line-Department and the Department would
need to pay the concerned agencies.

iv. The drafts of the DPRs being prepared can be discussed with the KMERC team
for revision/guidance.

v. DCs are requested to review and provide necessary support to the

Dept/concerned agencies for/ during DPR preparation as may be required.

vi. In case of sectors under the administrative control of the Zilla Panchayat (ZP),
the ZP-CEO is also at liberty to review the works proposed under the DPR, as
to whether they are actually required, are as per mandate of concerned
Department and within policies/guidelines of Govt.

vii. Approval of DPRs from DC/DLC is not required; However, DCs are at liberty
to review DPR preparation, quality, scope, cost, locations etc. and suggest
necessary changes within overall approval accorded by the Oversight
Authority.

viii. Minor changes within the cost approved by OA can be done by concerned Line
department/Deputy Commissioner. However major changes in the scope or if
the cost exceeds the approval, in such cases approval of Oversight Authority
again would be required.

2.4 Proposals are put in public domain

The one-pagers of the project proposals (containing project area, cost, outputs,

30
outcomes, post project sustainability mechanism and justification for proposing
under CEPMIZ etc.) approved by the Hon’ble Oversight Authority are published
and uploaded on the KMERC website for favour of information to all concerned.

If no objection or query is received within a time frame of 15 days, a

communication to proceed for DPR preparation is shared to the concerned
department. The official communication to the Department for the projects so
approved is also uploaded on KMERC website for reference.

2.5 Formats for submission of proposal to KMERC

Following formats have been provided under KMERC for the departments to
share the project proposals.
Format 1: It encapsulates all the projects proposed by the department and helps
to review at a glance.
Format 2: It provides summarised details of the project proposed comprising the
location, outputs, outcomes, and justification of the project proposed.

LIST OF PRIORITY PROJECTS UNDER CEPMIZ

FORMAT-1
Time
Whether
requir
Appr Project
ed for
oxim is Short
DPR Cost of
Type of ate term
Sl prepar Prepar
Project Cost (<1year)
. ation ation
District Taluk Sector Name of the Project (New/ of Medium
N (No. of
Upgrad Proje term (1-
o. of DPR
ation) ct (In 3 years)
month (Rs.)
Lakh or Long
s in
s) term (>3
numer
years)
als)
1

31
 FORMAT FOR SCRUTINY OF PROJECTS PROPOSED FOR FUNDING UNDER
CEPMIZ
FORMAT-2

1 Name of the proposing Department/Agency

2 Name of the Project

Location of the Project

3
([Link] /Village/Taluk/District & Lat/Long

4 Is Site/Location available?

Is it in Mining Impact Village, Taluka or Mining

5
Affected District?

6 Approximate Cost of the Project (Rs. In Lakhs)

7 Project Output (Quantity: No/Ha/Cum etc.)

Project Outcome
8
(Specific measurable outcome)

Justification/reasons for seeking funding under

9
CEPMIZ

Mechanism for post project maintenance or

10
O&M

Is it standalone project or in convergence with

11
other programmes/projects?
Is it New Project or Upgradation / Strengthening
12
of existing Asset?
Does Department has capacity to implement the
13
project?

32
3 DPR: PREPARATION & TECHNICAL SCRUTINY

Updated Guidelines along with Help notes are issued by KMERC from time-to
time towards preparation of the DPRs by the Departments. These guidelines and
formats are also available on the KMERC website. The concerned Departments
must refer to the KMERC website to ensure that the latest guidelines in this regard
are followed.

3.1 Updated Guidelines for DPR Preparation as on 13/12/2022

The Technical Detailed Project Reports (DPRs) for each project as per the
technical norms of the Department, and the Project DPR as per following
guidelines, need to be submitted to KMERC by the line Department / proposing
Organization.

The Project DPRs to be submitted to KMERC should contain, among others,

details such as:
I. Contents / Index
II. Project at a Glance /Salient Features/ Executive Summary
III. Introduction and Background
IV. Project Objectives
V. Broad Categories of Interventions/ Components proposed
VI. Project Outputs (Activities & Quantities)
VII. General Abstract of Cost (AOC)
a) Work Expenditure (Activity-Wise)
b) Equipment & Machinery (if applicable)
c) Operational Expenditure (if applicable)
VIII. Envisaged Outcomes / Benefits
IX. Monitoring & Evaluation Framework
X. Stakeholders Consultation and their inputs
XI. Project Implementation Calendar
XII. Expenditure Schedule (vis-à-vis Implementation Calendar)
XIII. Risk Management Strategy for Project Implementation

33
 XIV. Institutional Mechanism for Project Governance and Management
XV. Post implementation maintenance and Sustainability mechanism
XVI. Annexures
i. Maps / sketches, showing location of works
a. *Taluka/Village Map
b. *Google Map
c. Topo Map/ Any Other Map/ Sketch
(1 & 2 above are mandatory)
ii. List of Beneficiaries / Villages / Habitations (As Applicable)
iii. Other details / supporting documents, references as required

The implementing Department/ Agency shall certify to the following

i. That the site for the project is available or will be procured for the project.
ii. The DPR is based on detailed estimates, designs & drawings prepared as
per technical norms of the Department and the same is Technically
scrutinized by the Competent Authority in the Department.
iii. That the proposal is in the project-mode with specific outputs and
measurable outcomes.
iv. That specific and satisfactory justification for undertaking the project has
been provided.
v. That all mining affected villages / areas have been covered / saturated; only
after that the project in other mining-affected areas are taken up.
vi. That the vulnerable households / poor people/ unemployed ex- mine
workers shall be covered in the project, (wherever applicable).
vii. That the involvement of local stakeholders in the planning, implementation
& maintenance of the proposed project has been considered in preparation
of DPR, as far as possible.
viii. That the department has the implementation capacity and shall set up an
CEPMIZ Project Implementation & Monitoring Cell at the District
Officer’s level and at the State HQ for the Project.
ix. That the Project is not funded under any other scheme or it is in convergence
with a particular scheme (Details need to be provided).
x. That the funding sought for the project is reasonable and within the amount
approved for the project under CEPMIZ for the sector and district.
34
xi. That post-implementation, sufficient funds and manpower for maintenance
and sustainability will be ensured through the departmental budget / user
fee / other means (Please specify).
xii. That the department will be responsible for execution, its monitoring and
all legal and other issues arising out of the Project implementation.
xiii. That the Department will abide by the guidelines of the KMERC/ State Govt
and provide all necessary relevant information in the context of the
proposed Project, as may be sought by the KMERC / State Govt from time
to time.
Each of the above certificates shall be separately & individually provided with
relevant details in the DPR.

Technical DPR:
The Technical DPR consisting of Estimates / Data sheets for different kinds of
Works/ Equipment & Machinery/ other activities included in the Project, duly
scrutinized by competent Authority in the Department, to be submitted in a
separate volume.
Cost towards DPR Preparation, Project Monitoring & Evaluation,
Administrative Costs & Total Project Cost

1. The Implementing Department, as per the requirement, make provision in

the DPR, of a maximum of 1% of the Project Cost towards:
i. Administrative cost towards CEPMIZ Project Implementation &
Monitoring Cell at the District Officer’s level and at the State HQ,
including Documentation; and,
ii. 3rd Party Evaluation

2. The Line Department / Project Implementing Agency (PIA) may utilize

the CEPMIZ funds for the preparation of the DPRs, as per the approved
norms in the Department or as per actual requirement subject to KTPP
Act.

3. The concerned Line Department may prepare the project DPRs and the
Technical DPRs by utilizing relevant resources/ experts/ consultants or,
through a suitable agency, as per KTPP Act.

35
 4. The cost of DPR preparation shall be made available to the concerned Line
Department proposing the project.

5. The total project cost should include inter-alia

i. Cost towards DPR preparation
ii. Statutory taxes, if not already part of SR
iii. Cost-Escalation
iv. Tender Premium

6. The total project cost should be within the cost approved by the
KMERC, and in any case, within the District and Sectoral allocation
under CEPMIZ.

DPR Submission to KMERC:

The project DPRs containing details as per A) and C) above are to be
appraised by the KMERC & approved for implementation by the concerned
line department / PIA.

A copy (both soft & hard) of the duly Technically scrutinized / sanctioned
Technical DPR as per B) above shall be made available to KMERC for its
record and future use.

The “Help Notes for DPR preparation” available on KMERC Website may be
referred for further clarifications, or queries may be raised at below contact
details:
 Phone: 080-22354736/37/38
 Email: cepmizprojectspmu@[Link]
The Guidelines for DPR preparation can also be accessed under “Documents”
section -> “Guidelines & Formats for Preparation of DPR”, on the home page of
KMERC website at:
[Link]
files/Updated%20Guidelined%20for%20DPR%[Link]

36
3.2 Other considerations for DPR preparation

 The DPRs – Technical and Project DPRs – are to be prepared after

perambulation of the site by the Officers of the concerned Department
proposing the project, and the Technical Officer/ Consultant/ Agency
entrusted with DPR preparation, and after taking actual measurements of the
quantity of the work involved at each site and as per approved State/Central
govt. guidelines (if any) of the concerned Line Department.

 For Beneficiary-oriented programs/components, the list of potential

beneficiaries should be obtained during the DPR preparation stage (if there
are not too many). If number of individual beneficiaries expected for any
project are high, only their village/category-wise summary can be given in
the DPR and individual beneficiaries’ list can be drawn during project
implementation. The details of such beneficiaries need to be published for
transparency and to ensure that ineligible beneficiaries are kept out.

 The focus of all project DPRs should be on benefitting the weaker sections
of the society, particularly covering women, children, SC/ST, labourers,
farmers, livestock owners and other vulnerable local communities of the
mining-affected villages / areas of the four districts in accordance with the
CEC guidelines under the CEC report dated 16.04.2019.

 For various works, there could be Model Cost-estimates/ Data-sheet/ Unit

Cost Template available within the Department for the year, which could be
utilized for expeditious preparation of technical DPRs.

 The cost estimation for each work has to be arrived based on the sanctioned
schedule of rates of the concerned Sector/ Department, for works for which
no model cost-estimates/ Data-sheets are available.

 Where detailed engineering designs and drawings are not involved, it is

suggested to prepare the Technical DPR by the Department itself, or by
engaging suitable resources. For projects whose DPRs can be prepared
within Rs. 5 Lakh, it can be directly entrusted to any consultant or agency
after obtaining suitable quotations.

37
 For projects whose DPRs preparation require more than Rs. 5 Lakh, and if
already empanelled agencies are available or agencies with KTPPA 4(g)-
Exemption are available, in such cases their services can be directly utilized,
provided they have the capacity and relevant experience.

 Wherever tenders need to be called, in case of various kinds of urgency, short

term tender could be called for preparation of DPR after taking approval
from the competent authority.

 A particular project may involve multiple works and as many detailed

estimates, which are to be independently executed. In such cases, after as
many Technical DPRs/ detailed estimates are to be prepared and submitted
for scrutiny of the competent Technical Authority, and such details may be
mentioned in the project DPR submitted for appraisal. This would save time.

However, the final approval of the project and its implementation can
start only after the technical scrutiny of the Technical DPR/ detailed
estimates by the competent authority.

 A project may involve multiple works at multiple locations, which could be

divided into suitable packages for ease of implementation and monitoring.
However, necessary care should be taken.

 In case of Watershed Development projects, the initial Technical DPRs may

be prepared by the Department, but the detailed project DPRs are to be
prepared by the department jointly with Resource Institution in consultation
with the local communities, as per PMKSY-WDC 2.0 guidelines. The DPRs
so prepared through consultative exercise are to be made for a project-period
of 5 years.

 Forestry project DPRs are to be prepared for treating entire Landscape or

Forest-area or on watershed-basis for a period of 7 years by the Forest
Department. The entire forest is to be treated with Soil-Moisture
Conservation (SMC) works, in addition to undertaking implementation of
other afforestation models for rehabilitation of mined areas, forest protection
works etc. In this regard, detailed guidelines have been issued by the Office

38
 of the PCCF(Development), Karnataka Forest Department vide Circular no.
KFD/DEV/B1AB/KMERC/1/2022 dated 02.03.2023 (Annexure 10).

 In case of Health facilities or other projects, where for running the

upgraded or new facility additional staff cost is involved, the same may be
proposed to be provided under CEPMIZ project for 1 or 2 years. In such
cases however, the concerned Department needs to get the staff sanctioned
from the Government before starting execution of such projects. This is to
ensure that the facilities created under CEPMIZ shall continue to be utilized
for the purpose for which it is funded.

 For physical infrastructure works such as Buildings, Roads and Check dams
etc., detailed estimations are required to be technically scrutinized by the
competent Technical Authority in the Department and the same are to be
submitted as a separate volume along with the project DPR.

 In case of Road projects, only CC roads are permitted for implementation

under CEPMIZ, whether PWD or Rural Roads to be constructed by PRED.

 While preparing DPR, minor changes may be proposed in the scope of the
project but within the approved project cost. In any case, the project DPR
has to be vetted by the concerned department HoD /Secretary. In case there
are major changes in scope or increase in project cost compared to the
approved project scope / cost, the project DPR has to be reviewed by the
concerned DC / DLC. Subsequently, KMERC shall examine the project
DPR and obtain OA’s approval on the major changes in the scope or costing
already approved before considering for administrative approval of such
project DPR.

 The Project Information Boards (PIB) need to be provided for each project.
The PIBs need to be legibly displayed at prominent location(s) in a suitable
form, which should last for at least 10 years, and should include all the
information as required in the format provided in Annexure 7, in addition to
any other Project Specific Information that the concerned Department may
like to display for the project.

39
 (The template for this format can also be accessed under “Documents”
section -> “Guidelines & Formats for Preparation of DPR“, on the home
page of KMERC website at:
[Link]
ats+for+Preparation+of+DPR/en%20).

The KMERC has provided detailed help notes for the preparation of DPR. The
departments are requested to make use of these Help Notes for drafting their
respective DPRs.

Help notes for DPR preparation can be referred to at Annexure 3 of this

document. The same can also be accessed under “Documents” section ->
“Guidelines & Formats for Preparation of DPR“, on the home page of KMERC
website at:
[Link]
Preparation+of+DPR/en%20

3.3 Formats for drafting the DPR

The KMERC has provided few formats for preparation of DPR on its website at
[Link]
Preparation+of+DPR/en%20

The department is requested to visit the KMERC website to refer for obtaining
latest updated formats under “Documents” section -> “Guidelines & Formats for
Preparation of DPR”, on the home page of KMERC website. The formats for
DPR includes:
 Project at a Glance (Annexure 4).
 Project Stakeholder Assessment (Annexure 5).
 Risk Management Strategy (Annexure 6).
 Project Information Board (Annexure 7)

40
4 APPRAISAL OF DPR AND ADMINISTRATIVE APPROVAL OF
THE PROJECTS UNDER CEPMIZ
The technically scrutinized DPRs submitted by the Department are then
examined by KMERC. For this purpose, a Project Appraisal Committee (PAC)
has been constituted by KMERC for reviewing the DPRs submitted by the
Departments. The constitution of the PAC is as given below, and the related Order
can be seen in Annexure 9.

4.1 Project Appraisal Committee

The following members constitute the Appraisal Committee:

1. Managing Director Head of the Committee

2. Chief /General Manager Member

3. Chief Financial Officer Member

4. DGM (Technical), KMERC Convener & Member

5. DGM concerned Member

6. Team Leader of PMU Member

7. Dept. Nodal officer Invitee

MD, KMERC may invite/co-opt any one or two expert or domain

specialist for the Committee meeting, who may be paid Rs. 2000/- as honorarium
plus transport, if required.

The Appraisal Committee shall do the appraisal of the DPRs w.r.t following:

1. Whether the DPR proposed is within the cost and scope approved by the
OA.
2. The quantity and kind of works/outputs/activities involved, their unit costs
are also checked; in addition to the basis of those unit costs and whether
they are reasonable.
3. Whether mining-affected villages are prioritized?

41
4. Whether the physical outputs and costing are technically scrutinized by
competent technical authority of the concerned Department?

5. Whether the project outcomes are clearly brought out and can be evaluated-

This means the outcomes need to be clearly ascertained while preparing

the DPR with present levels and what changes are expected in those
outcomes after 1, 3, 5 or up to 10 years of the project-implementation,
depending on the project-duration. The outcomes/benefits could be few but
must be measurable. The kinds of outcomes likely from various projects
could be referred from the Format-2 of the projects for which funding has
been approved and uploaded in the KMERC website.

6. Review the implementation and monitoring mechanisms - How the

execution and monitoring of the proposed project will be carried out.
For this purpose, there has to be a dedicated capacity under each
Implementing District/ State Officer for performing various tasks related
to project implementation, supervision/ monitoring, quality checking,
documentation and for regular reporting of physical and financial progress
to the Department and KMERC.

For above purpose, a CEPMIZ Project Implementation Cell at the District

Officer’s level needs to be created, which could be headed by a senior
technical / administrative officer and involving a suitable resource and
support staff. Similarly, at the State HQ of the Department, a CEPMIZ
Project Monitoring Cell needs to be created, headed by a senior technical /
administrative officer of the Department and involving a suitable resource
and support staff. For creation of the aforesaid Cells at the District and
State HQ levels, provisions need to be made in the DPR within 1% of the
Project Cost.

7. Whether the post project sustainability mechanism is there or would be

ensured by the department?
In this regard, how the asset(s) created from the project funding would be
utilized and maintained after the project period, and from where the
resources would come, need to be clearly mentioned in the DPR. This
means the institution responsible for such maintenance and source of

42
 funding – whether user fee or Departmental Budget – need to be
mentioned. Wherever additional financial implications are involved on the
State Budget, in such cases, before starting the project implementation,
Government approval needs to be obtained by the concerned department
for such liabilities.

8. Seek additional information, if required.

The DPRs are scrutinized and discussed in accordance with the concerned
KMERC and Department Guidelines by the Committee and decisions in this
regard are officially conveyed by KMERC to the respective Departments.

Subsequently, the recommendations of Appraisal Committee are placed before

the MD, the Board Sub-Committee, or the KMERC Board for according the
Administrative Approvals.

4.2 Administrative Approval of the DPRs

As per the resolutions of the 3rd meeting of the KMERC Board held on 9th October
2014, upto Rs. 15 Cr. the administrative approval will be considered by MD
KMERC; for projects above Rs. 15 Cr. and upto Rs. 50 Cr, the administrative
approval is to be considered by the Board Sub-committee headed by Chairman
and consisting of Secretary, Mines & MD KMERC, and for projects above Rs.
50 Cr. the same has to be approved by the Board.

Above delegation of financial power has been approved by the State Cabinet in
its meeting dated 08.03.2023 and accordingly, the Government Order No. CI 215
MMM 2022, Bengaluru, dated 13.03.2023 has been issued.

The G.O is enclosed as Annexure 11 and can be accessed in KMERC Website,

[Link]
files/[Link]

43
4.3 Project and DPR Submission at a Glance

Concerned Government Department to propose projects required by it, which are as per
CEPMIZ objective, CEC Guidelines & Hon'ble Supreme Court orders.

Project Proposals are reviewed by the District-level Committee and forwarded to the
concerned Line Department at the State level

The proposals are examined by the concerned Head of the Department (HoD) and
recommended to KMERC for further processing

KMERC scrutinizes and place eligible projects before KMERC Board/ Chairman

Projects recommended by KMERC Board are placed before the Hon'ble Oversight Authority

Projects approved by the OA are communicated to the concerned Department for preparation
of DPRs, after placing the same in public domain for 15 days for inputs/ feedback, if any

Concerned Department prepares the DPRs for its approved projects and also undertakes
Technical Scrutiny of the DPRs, as per its norms

The DPRs, after Technical Scrutiny, are submitted to KMERC for Appraisal and Administrative
Approval

KMERC appraises the technically scrutinized DPRs and provides observations/ requests
additional information from the concerned Department

After compliance of the observations of the KMERC Appraisal Committee, KMERC initiates further
process for according Administrative Approval to the DPRs submitted by the Department

44
5 TRANSPARENCY MEASURES

5.1 Publishing the CEPMIZ Plan

The Para 2, sub-para (iii) of the Hon’ble Supreme Court Order dated 21.04.2022
(placed at Annexure 1 to this document), inter alia states that “ …the parties are
at liberty to place any objections or submissions before the Oversight Authority
with regard to the CEPMIZ Plan. The Oversight Authority shall decide the said
objections or suggest modifications after hearing the parties and taking the
assistance of any expert, including the CEC, as may be required.”
In this context, in the 3rd meeting of the Hon’ble Oversight Authority held
on 30th July 2022, it was decided that any suggestions or objections confined to
the CEPMIZ Plan (for which in-principle approval has been given by the Hon’ble
Supreme Court) can be received in writing from the interested parties by putting
up the CEPMIZ Plans onto the website, in public domain. Accordingly, it was
placed, and suggestions were invited.

5.2 Placing of approved project details in public domain

Further, Hon’ble Oversight Authority also decided and accordingly directed to

place the details of each individual project approved to be placed on the website
for favour of information to all stakeholders and only after being there for 15
days, to communicate to the concerned department to prepare the DPRs.
In accordance with the above, the one-pagers of the project details
containing the brief details of the project approved by the Hon’ble OA, which
includes details of the project area, cost, physical outputs, likely outcomes,
justification for seeking funding under CEPMIZ, mechanism for post project
sustainability are uploaded onto the KMERC website. Thereafter, within 15 days,
if no suggestions or objections are received during this period, the project-
approvals are formally communicated to the respective Departments for
preparation of Detailed Project Reports (DPRs). In case there are any suggestions
or objections are received during this period, the project-approvals along with
such observations / inputs are formally communicated to the respective
Departments for preparation of Detailed Project Reports (DPRs).

45
5.3 Procedure for approval and implementation of the projects under
CEPMIZ

Hon’ble Oversight Authority in its 4th Meeting held on 06.08.2022 has approved
the ‘Procedure for approval and implementation of the projects under CEPMIZ’
and the same is published on the website.

5.4 Publishing decisions /minutes of the Oversight Authority meetings

Going forward, Hon’ble Oversight Authority also directed to place the minutes
of the meeting of the Oversight Authority onto the Website, so as to maintain
complete transparency into the decision making.

5.5 Publishing all approvals/ fund releases

KMERC additionally is also placing the communications to the various

departments regarding approval of its projects onto the website, so that its details
are simultaneously available to all the concerned authorities and to any other
stakeholder.
KMERC, in addition, is also placing the guidelines for preparation of DPRs, the
list of mining affected habitations, as communicated by the Department of Mines
& Geology and reviewed and revised by the district Deputy Commissioner and
also any other relevant information onto its website, so as to maintain complete
transparency.

46
6 PROJECT IMPLEMENTATION & MONITORING

6.1 Work Management

The List of projects/works/activities already included in the CEPMIZ are to be
prioritized while proposing the projects, the financial limits of the sector and
taluk, as submitted before Hon’ble Supreme Court should be adhered to subject
to actual requirement as on date.
All projects proposed for funding under CEPMIZ are to be reviewed by District
Level Committee headed by Deputy Commissioner of the concerned Districts.
After comprehensive assessment of present requirements, the projects which have
to be taken up for implementation are to be drawn up using Format-1 and Format-
2, as per approved guidelines of KMERC and forwarded to the respective Line
Departments to ensure that the proposed works are not included in any other
Programs of the Department.
The proposed projects conforming to CEPMIZ are reviewed by KMERC and
placed before Oversight Authority for approval. The projects approved are
communicated to the line departments (after posting them in public domain on
KMERC website for 15 days) for submission of DPRs based on the guidelines
issued by KMERC. The DPRs received are reviewed by the Project Appraisal
Committee constituted in KMERC. Necessary Fund/Administrative approvals
follow as per the Delegations of power of KMERC.
The Project Implementing Department should ensure smooth implementation of
the project and responsible for:
 That the work has not been proposed / approved under any other schemes of
the Government and there shall be no duplication of works.

 That implementing agency has taken steps to obtain plot/ land in case of
construction, expansion of building under the project and the same are
available for implementing the project.

 The Department/organization responsible for execution of the work shall

follow a transparent and competitive bidding process through the e-
procurement portal of the Government of Karnataka for procurement,
selection of consultants / execution agencies of the Project, as per KTPP Act.

 The Department /organization shall be responsible for supervision of quality

and quantity measurement of the project.

47
 Consideration of any deviation in the approved works shall be at the
discretion of the concerned Administrative Department/ Implementing
Government Agency, provided, all such deviations are within the project cost
and the corresponding works are carried out at the originally approved
location. However, prior approval from KMERC shall necessarily be taken
for any change in the cost, scope, or location of the Villages / Town.
\

 The concerned Administrative Department/ Implementing Government

Agency shall provide the quarter-wise implementation calendar and
expenditure schedule for release of funds.
 The concerned Administrative Department/ Implementing Government
Agency may not entrust the implementation of the approved work(s) to
another Administrative Department/ Implementing Government Agency
without express permission of KMERC.
 The concerned Administrative Department/ Implementing Government
Agency must verify Project Proposals, related scheme guidelines, and
sanction Action-Plans as per its norms, before starting actual execution on
the ground.
 The concerned Administrative Department/ Implementing Agency shall be
solely responsible for resolving all financial liabilities and land-related
disputes or any other disputes related to the approved project-works.
 Human resources that may be engaged for implementation of approved
work(s) are not to be treated as employees of KMERC, and the deployment
of such human resources post the completion or termination of the approved
works(s) will not be the concern/ responsibility of KMERC.

The PIO (Project Implementing Officer) should follow the steps mentioned
below in implementing CEPMIZ projects:
1. The cost of DPR preparation wherever necessary can be claimed by Project
Implementing Officer, as per actual requirement or as per the limit fixed by
the KMERC after the DPRs is appraised and found in order.
2. The projects approved should be implemented as per prevailing KTPP Act.
3. The expenditure of the project should not be more than the sanctioned
amount. It may please be ensured that the expenditure be managed within
the available and approved funds only.
4. The funds earmarked and approved for the proposed
category/categories/location(s) of works, must be utilized exclusively for
the respective category/categories/area/village/town only, and cannot be
diverted for other categories/location(s) of works outside approved village
/ town.
48
5. For the project execution duration exceeding 11 months, cost escalation
needs to be incorporated. Also 5% tender premium, in addition to applicable
GST, DPR preparation cost and upto 1% cost towards administrative
expenses, documentation, concurrent monitoring and 3rd party evaluation to
be provisioned in the DPR.
6. Still unavoidable circumstances may arise, whereby additional cost may be
estimated to be incurred over and above the provisions in the sanctioned
amount for the individual work or project. In such cases, one or more works
may be more than the estimated cost, but if it is within overall approved
project cost, Department can go ahead with work entrustment to L1 Tender.
If the tender cost is exceeding the sanctioned amount of the Project (and not
individual work), the same need be submitted to KMERC with justification
for revised approval before executing the agreement with the successful
bidder.
The DPR, Contract agreement documents and work order copies are to be
submitted in soft copies / uploaded in KMERC portal for reference and
record.
7. The projects need to be carried out as per the prevailing norms and contract
agreement of the Line Department with necessary Quality & Quantity
checks, before raising the Fund request to KMERC.
8. The Project Information Board (PIB) needs to be legibly displayed at
prominent location(s) in a suitable form which should last for at least 10
years and should include all the information as required in the format
provided in Help Notes for DPR Preparation Guidelines (made available on
the KMERC website), in addition to any other Project Specific Information
that the concerned Department may like to display for the project.
9. Implementing agency should carry out concurrent monitoring and project-
end evaluation / mid-term evaluation in consultation with KMERC-
Bengaluru /KEA, through internal resources or third-party and submit the
reports to KMERC.
10. The Local stakeholders could be consulted before starting the work and
respective Stakeholder-consultation reports should be submitted with geo-
tagged photographs to KMERC, in case of new type of works.
11. Geo-tagged photographs for before/during/after completion and at all stages
of works are to be uploaded in the KMERC portal & provided in soft copies
to KMERC.
12. Inspection reports of all concerned Officers visiting the CEPMIZ projects
are to be recorded and maintained for each work/ project.

49
13. Geo-tagged Photographs showing the quality checks made at all stages of
work are to be maintained by PIO.
14. Purchase of equipment and machineries are to be carried out as per the
prevailing norms of the department. Annual / Periodical maintenance of the
purchased equipment and machineries are to be done as provisioned in the
DPR, for successful utilization for the purpose they are procured.

15. Stock / Asset register must be maintained for all constructions /

procurements / other works, which are liable for depreciation. All other
works / plantations / nursery etc., need to be maintained in separate
registers.
16. Human resource as provisioned in the DPR need to be engaged by
Departments PIO and the proposed service activities should not be
interrupted.
17. The training activities proposed are to be conducted in accordance with the
concerned departmental guidelines, facilitating particularly the people
affected due to mining activities.
18. The CEPMIZ proposals of Forest department including,
 The afforestation works & soil & water conservation for Eco-
Restoration.
 Institutional plantation, Roadside planting, Urban planting &
distribution of seedlings to farmers/ public should be as per norms of
the respective Departments.
 Rehabilitation and restoration in closed mines to improve the ecology
of the area.
 Increased environmental and bio-diversity of farmlands
 protection of wildlife
are to be taken care of as per the prevailing guidelines of Forest Department
and a detailed report of the ecological improvement is to be submitted. The
activities to be taken up within the forest areas should necessarily conform
to the Approved Working Plans of the Karnataka Forest Department.
19. Development works in Zoological Park and Tree Parks are to be as per the
prevailing guidelines of Central Zoo Authority / State / Central
Government.
20. Pollution Control Board activities like establishment of air quality testing
laboratory, water quality testing laboratory and mobile vans for continuous
ambient air quality monitoring and purchase of integrated noise level meters
should lead to improvement of environment quality in mining affected
areas.

50
21. Watershed developments in mining affected areas should be as per
Watershed guidelines issued by State & Central Governments. The
structures constructed in this program are to be maintained as per PMKSY
WDC 2.0 guidelines & GoK Order in this regard.
 Treatment of watershed areas with suitable treatment of arable and non-
arable land
 Nala treatment like Rubble checks, boulder checks for soil conservation
and WHS like Farm ponds, Check dams, nala bunds, nala revetment,
Gokatte, de-siltation for water conservation
 Integrating soil conservation activities with Agro-forestry (bund
sowing, block plantation, bund planting, distribution of seedlings to
farmers), Horticulture (dryland horticulture, distribution of vegetable
mini kits etc.,), Animal husbandry (Animal health camps, fodder
developments, Travis installation)
 Should enable to uplift the economic status of people in mining affected
villages and corresponding details are to be furnished in the DPR &
periodical progress reports to be submitted.
22. The works proposed in Veterinary Department by providing facilities like,

 Veterinary hospital upgradations and strengthening polyclinics

 Training and extension of dairy development activities
 Artificial insemination programs
 Travis shelter installations
 Strengthening of Milk chilling centers
 Automated milk collection units
should enable to uplift the economic status of people in mining affected
villages and corresponding details are to be furnished.
23. The works proposed in Fisheries Department by

 Capacity building of Fisherman through trainings by Inter-District &

Inter-state study tours exposure visits and trainings.
 Supporting fish farmers with advanced fingerlings, aerators, fishery
requisites and transport facilities.
 Improving hygienic fish markets by providing cold storage facilities,
modern fish retail outlets and
 providing facility for disposal of fish waste
should enable to uplift the economic status of people in mining affected
villages and corresponding details are to be furnished.
24. The projects proposed for Women and Child Development include
 Construction of new Anganwadis

51
  Upgradation of existing Anganwadis
 Providing Play Equipments
 Nutrition programs for Pregnant & Lactating Women as well as Children
are to be taken up with utmost care in effective implementation and
corresponding outcomes are to be furnished.
25. Line Dept./ Project Implementation Agency should ensure that students/
youth from mining affected areas should get the maximum benefit from
projects pertaining to Education and Skill Development sector and all
outcomes from the proposed projects are required to be furnished.

26. Line Dept./ Project Implementation Agency while implementing the

projects proposed for welfare of tribal/minority/backward classes should
ensure that new infrastructure facilities help in providing good residential
facilities for the youth, which will help them to pursue higher education.
27. Project Implementing Officer is solely responsible for any kind of
violations/deviation in works proposed in DPR.
28. The progress of works should adhere to the Implementation chart provided
earlier and fund release requests should be made as per Tender agreement /
work order.
29. The Utilization Certificate should be submitted soon after all payments
made for the corresponding release / month.
30. KMERC reserves the right to fix the limit of payment after necessary
verification before releasing requested funds.
31. Project Implementing Officer of the concerned Line Department/Project
Implementing Agency will be solely held responsible for any kind of
fraudulent expenditure and action can be initiated as per the prevailing
norms of the Department / Govt.
32. The CEPMIZ asset created shall not be disposed off, encumbered or utilized
for purpose other than for which funds have been provided by KMERC. In
case, the project is sanctioned to agencies other than State Government
Department, public utility or autonomous agency entrusted with
construction and/or management of such asset, the Project Implementing
Agency shall operate and maintain such projects. The Government will
have the right to inspect the functioning of such projects.
33. The Implementing agency will furnish the monthly and quarterly progress
report to the KMERC as agreed in the DPR.
34. Necessary approval from KMERC need to be taken if the approved project
cost is exceeding due to financial liability arising out of tender premium,
52
 cost escalation and time extension as well dispute resolution or arbitration
proceedings.
35. KMERC at its jurisdiction of the project have the right to access to all
Projects during inspection and related records need to be presented for
verification.
36. The Project Implementing agency does not have the right to divert the funds
for any other purpose sanctioned other than for what is sanctioned by the
KMERC.

37. Dedicated CEPMIZ projects monitoring cell are to be constituted at District

and State level Offices of Line departments for regular monitoring and
updating the progress of CEPMIZ projects.
38. Human resource that may be engaged for implementation of any project by
the Project Implementing Agency should be co-terminus with the project or
requirement of their services whichever is earlier and are not to be treated
as employees of KMERC and the deployment of such human resource at
the time of completion or termination of project will not be the concern/
responsibility of KMERC.
39. Concerned Line Department/Project Implementing Agency shall document
the best practices, success stories, case studies as well as learnings and share
the same with KMERC.
40. Completion Reports for each work in the sanctioned project must be
obtained within 3 months of work & payment completion as per norms of
the Department and maintained for inspection/ monitoring/ audit of the
works under CEPMIZ Project.
41. Project Completion Certificate is to be submitted by the concerned Line
Department/Project Implementing Agency after completion of the project.
42. It is to be noted that KMERC reserves the right to terminate any approved
project work at any stage and to recover the amounts already paid, if it is
convinced that the fund under CEPMIZ is not being optimally utilized or
satisfactory progress is not being made in the project implementation or if
there is any fraud or corruption by the Project Implementing Agency.

53
7 PROJECT GOVERNANCE & MANAGEMENT AND CONCURRENT
MONITORING

7.1 Project Governance and Management

The department needs to mention the project governance framework in the DPR.
Details on the work- approval process and related administrative hierarchy
specific to the project, such as which office of the Department (District officer/
State HQ/ Any other level) will call for Tender, issue work orders, supervise,
implementation, incur expenditure, submit physical & financial progress etc.,
should be provided in this section.
The officers responsible for monitoring at the Divisional level and HQ level, and
the capacity available/ created for CEPMIZ project should be mentioned in this
section.
The governance structure and roles and responsibilities of the KMERC officials
is as follows:
1) KMERC Board
a) Approval of the Project to be taken up,
b) Approval of norms for release of funds to the Implementing Agency,
c) Administrative approval of DPRs with project cost more than Rs. 50 Cr.,
d) Monitoring project progress- physical & financial and their outcome.
e) Approve Monitoring/Evaluation/Audit reports.

2) Board Sub-committee
a) consisting of Chairperson, Secretary (C&I) and MD KMERC
b) To accord administrative approval for DPRs costing more than Rs.15 Cr.
and up to Rs.50 Cr.
c) Approve proposals/evaluation/monitoring reports to be placed before
CEC/Oversight Authority/Hon’ble Supreme Court.
d) Approve engagement of Monitoring & Evaluation agencies/internal
Auditors/other consultants for which provisions is approved by the Board.

54
3) Managing Director
a) KMERC Board may delegate the following to the Managing Director:
b) to accord administrative approval of DPRs/approve Tenders up to Rs. 15
Cr., on the recommendations of Project Appraisal Committee of KMERC;
c) to release funds to the PIAs, as per norms approved by the Board and obtain
& scrutinize UCs.;
d) to conduct inspection/get verification done through its officers & various
agencies.
e) to examine progress report/monitoring and evaluation reports/audit reports
and take further action on them.
f) to hire staff as per the sanctions (group C& D on outsource and A&B
retired officers on contract method and other through
consultancy/outsource mode.
g) to discharge all administrative functions/ responsibilities of the company,
as delegated by the Board.

4) District Deputy Commissioner:

a) To review the individual project proposal and recommend to the
Department and KMERC.
b) To review and monitor all works.
c) Responsibility to provide Government land /acquire private land/resolve
site related issues of all projects.
d) Resolve issues/get enquiry done into complaints

7.2 Project Monitoring

The project implementation will be monitored concurrently by the Implementing

Agencies as well as by the funding agency i.e., KMERC. After the projects are
completed, they need to be evaluated independently. The proposed framework is
as under:

55
7.2.1 At the Implementing Agency level:

Concurrent Monitoring
Each one of the individual projects need to be monitored properly for its quality,
quantity as well as timeliness. Concerned IA need to have either in-house
capacity for meaningful concurrent monitoring or hire an agency for the same or
both.
The monitoring of progress, quality and quantity by the IA have to be (1) At
District level & (2) At State level through a regular monitoring mechanism and
monthly and cumulative reports need to be shared with KMERC within 1st week
of next month. Based on the physical and financial progress and reports of
satisfactory quality, KMERC would release further funds to the IA.

3rd Party Evaluation

All the projects to be implemented as part of the CEPMIZ will be evaluated by
independent and third-party agencies. It would be the responsibility of the IA to
ensure proper third-party evaluation of every project and share the evaluation
report along with action taken on its observations within 3 months of project
completion.

The TOR for the independent evaluation could be vetted by the KMERC/
Karnataka Evaluation Authority.

The third-party evaluation should focus on a). Asset Quality b). Quantitative
aspects, c). O&M whether provided for and finally d). Sustainability aspects,
whether institutional mechanism and legal framework is available for use and
maintenance of the asset). e) Also, GoK commitment, for providing the required
budgetary support for O&M is very crucial, to be ensured.

7.2.2 At the KMERC level

Web based monitoring

KMERC has developed web-based monitoring mechanism, through a robust
MIS, wherein live updated information for all the projects sanctioned, DPRs
approved, Funds released, Funds spent and Balance available with each of the IA
and its district and taluk units would be available on a real time basis.

56
Integration with e-procurement platform of Govt of Karnataka would be explored
to help track status of various procurements, whether initiated, under process,
completed, work order issued, contract agreements entered, and work started etc.

Utilization of New Gandhi Sakshi Kayaka (NGSK) by the implementing

departments for implementation and expenditure monitoring would be
encouraged to provide real time physical progress and financial utilization of
CEPMIZ projects.

Independent External Evaluation

Since there are huge outlays and value of the projects for few of the Railway
networks, Civil, NRM & Social sectors would be above Rs. 1000 Cr. at any point
of time for first few years, KMERC may engage separate third-party agencies for
each of these four broad sectors, as they require different skill set and technical
expertise.

Through such third-party agencies, the funding agency i.e., KMERC will
randomly and in a stratified manner monitor the quality and timely
implementation of the various projects sanctioned by the KMERC.

57
8 FINANCIAL MANAGEMENT

The following guidelines are proposed for Project Financing and Financial
Management of Funds released by KMERC.
8.1 Financial Management Guidelines:

1. A record of any permanent or semi-permanent asset created out of the funds

provided by KMERC under the project should be maintained in Register of
Asset or in prescribed registers or journals in terms of the extant rules and
procedures of the department. The term asset includes both immovable and
movable asset of capital in nature and which are liable for depreciation.

2. All public assets created from the funds of KMERC will be the property of
State Government Department or its agency and may be placed with any
public utility or autonomous agency created for construction, operation, and
management of the same. Such asset shall not be disposed of, encumbered,
or utilized for purpose other than for which funds have been provided by
KMERC. In case, the project is sanctioned to agencies other than State
Government Department, public utility or autonomous agency entrusted
with construction and/or management of such asset, the Project
Implementing Agency shall operate and maintain such projects. The Govt
will have the right to inspect the functioning of such projects.

3. The Implementing agency will furnish the monthly and quarterly progress
report to the KMERC as agreed in the DPR.

4. The Project Implementing Agency will follow the KTPP Act / Rules and
other approved prevailing Governmental / departmental rules and norms for
any kind of procurement of Goods / Services and execution of works for
implementation of works / schemes under CEPMIZ.

5. The financial liability arising out of tender premium, cost escalation and
time extension as well dispute resolution or arbitration proceedings shall be
borne by the KMERC, only if the project is executed as per the conditions
of the Sanction Order approved by the KMERC.

6. The Project Implementing Agency must maintain separate subsidiary

accounts for the project following its own accounting procedure and get
audited by the internal auditors.

7. Also, Project Implementing Agency is required to submit their audited

financial reports for the financial year by appointing an External Auditor
within 30th June of the subsequent financial year.
58
8. The account of Project Implementing Agency is liable to be audited by the
Accountant General.

9. KMERC at its jurisdiction of the project have the right to access to the books
of accounts of implementing agency for the funds provided by them.

10. The Project Implementing agency should not entrust the implementation of
the work for which the funds have been sanctioned for a project or work by
KMERC to any other implementing agency to divert the fund to other
implementing agency except with the express permission of KMERC.

11. Human resource that may be engaged for implementation of any project by
the Project Implementing Agency should be co-terminus with the project or
requirement of their services whichever is earlier and are not to be treated
as employees of KMERC and the deployment of such human resource at
the time of completion or termination of project will not be the concern/
responsibility of KMERC.

12. KMERC reserves the right to terminate the approval given for
implementation of project at any stage and also to recover the amounts
utilized from the concerned, if there is any fraud or corruption by the Project
Implementing or its officers and action will be taken.

8.2 Bank Operation Guidelines

1. A Project Account is opened by KMERC at the state level in Canara Bank,

which will be the Mother Account in the Fund Flow System. The account
will be operated jointly by MD, KMERC and CFO, KMERC.

2. A Subsidiary account opened at the level of Implementing Agencies by

State/District level officer will be the Child Account. This account to be
operated jointly by the authorized person as notified by the concerned
Project Implementing Agency (PIA).

3. The Bank will provide a specific User Id and Password to each Project
Implementing Agency/officer to operate the bank transactions through the
Bank Portal.

4. Child level account shall always be a zero-balance account.

5. At the level of Project Implementing Agency, Bank transactions are
operated in the Maker and Checker method, where in Project Implementing

59
 Agency has to decide upon who is the maker and who is the checker and
notify the same.

6. Sanctioned amount (fixed as limits) shall be released in tranches in

accordance with fund request after considering the progress of
implementation and actual expenditure incurred by the Implementing
Agency Officer.

7. The cost of DPR preparation wherever necessary could be released to the

Project Implementing Officer, as per actual requirement/as per the limit
fixed by the KMERC after the DPRs is appraised and found in order.

8. Project Implementing Officer must submit the claim for required amount /
advance in Format-4, for seeking release of funds to KMERC by
uploading/submitting the progress of the work/activity/component after
physical verification by the concerned officer in the Project Progress Report
in Format-3 along with the UC in Format-6, duly countersigned by the
Controlling Officer, in case of District level officer.

9. The KMERC shall verify the fund release request with respect to physical
and financial progress reports submitted in the above formats for the earlier
release and considering the evidence for the works executed and there after
advise the bank for allowing release /drawl of the expenditure for amount
agreed by the KMERC by fixing the limit for the funds allowed for the
payment by the respective Project Implementing Officer.

10. Once the funds are approved for the child account, the Project Implementing
officer must create vendor ID in the bank portal before initiating any
payment advice to the party concerned. A vendor may be
contractor/consultant/agency/individual beneficiary etc., (Eligible
Recipient). Project Implementing officer will make the payments only to
the eligible recipient through the portal provided by the Canara Bank. The
detailed procedures will be intimated by the Canara Bank.

11. The request raised by the Project Implementing Officer in the Canara Bank
software (CAN-GBMS) to prepare the payment advise will be submitted to
the Nodal Bank for the payment to the eligible recipient.

12. Any kinds of payments to eligible recipients must always be done in the
Canara Bank portal in the login provided by the Bank only.

13. All kinds of Statutory Deductions with respect to any payments must be
remitted to concerned departments by the deducting officer within the
60
 stipulated time period by debiting the Subsidiary Account (Child account)
using the Cheques/RTGS/NEFT and file the returns within time.

14. The Nodal Bank will credit the Beneficiary account as authorized in the
payment advice sent by Project Implementing officer by debiting the Child
Account. Bank shall never credit any amount without any official payment
advice from the concerned project implementing officer.

15. Any form of withdrawal in the form of cheques is not permitted.

16. Project Implementing Officer is solely responsible for any kind of

violations/deviation in payments done by him/her.

17. The Project Implementing Officer of the Implementing agency to submit

Utilization certificate for expenditure made for the eligible bills.

18. KMERC reserves the right to fix the limit of payment to the child account
based on the schedule of payment and also the physical progress as agreed
in the final DPR and as in Approval Order.

19. Project Implementing Officer and the concerned Line Department/Project

Implementing Agency will be solely held responsible for any kind of
fraudulent payment to unauthorized contractor/vendor/agency/ beneficiary.

61
9 INTERNAL / EXTERNAL / AG AUDIT OF THE EXPENDITURE

The expenditure incurred by the Project Implementing Agency has to be audited

by an Internal Auditor on a concurrent basis and by the Accountant General for
the year and certify the same.

9.1 Internal Audit- through Audit officers/Chartered Accountancy firm

All the implementing Agencies need to conduct Internal and External Audit of
the expenditure on an annual basis; the report of which, along with compliance
thereon, should be shared with KMERC for review. In case of lack of capacity
for internal audit, they need to engage Agency, so that the books of accounts are
regularly checked, and all financial records are kept updated. The expenses
required need to be provided in the DPR itself.

KMERC will also engage an Internal Audit agency for randomly checking the
books of accounts and other financial records of the Project Implementing
Officers.

9.2 AG Audit- through Accountant & Auditor General

The complete expenses for the F.Y. of each implementing agency shall be audited
by the Accountant General in the first quarter of the next F.Y. and Audit
certificate to be provided within June month; since as per MCA rules, the Annual
Report and Annual Financial Statement of the KMERC duly approved by the
Board and adopted by the AGM need to be filed by the end of 2nd Quarter.

9.3 Social Audit- through Gram Sabha

The Social Audit of the project activities related to development of rural areas or
those which are beneficiary oriented could be conducted once every year during
or after completion of each project by the concerned Line Department. The
Directorate of Social Audit of Rural Development & Panchayath Raj Department
could be entrusted with the responsibility of conducting social audit.

62
10 POST-PROJECT SUSTAINABILITY

Sustainability is an important aspect of the development projects facilitated by

KMERC, as it ensures that the benefits of the project continue long after its
completion. In addition to ensuring continued funding and Operating Staff for the
assets created under CEPMIZ funds, below mentioned guidelines could be
followed to ensure post-project sustainability of CEPMIZ projects, wherever the
concerned departments do not have such mechanism:
1. Involve stakeholders: Involve all relevant stakeholders in the planning and
implementation of the project, including community members, local leaders,
government officials, and non-governmental organizations. This will ensure that
the project is aligned with the needs and priorities of the community and that they
are invested in its success.
2. Build local capacity: Work to build the capacity of local organizations and
individuals to continue and maintain the project after its completion. This could
involve training local people in project management, technical skills, and
financial management.
3. Develop a sustainability plan: Develop a sustainability plan that outlines how
the project will be maintained and sustained after its completion. This could
involve developing a maintenance plan, identifying potential sources of funding,
and engaging stakeholders in ongoing efforts to sustain the project.
4. Ensure financial sustainability: Develop a plan to ensure the financial
sustainability of the project after completion, including identifying potential
sources of funding and revenue streams. This could involve developing
partnerships with businesses, governments, or other organizations.
5. Use appropriate technology: Choose appropriate technology that is easy to
maintain, repair and sustain. This ensures that the technology used can be
maintained and repaired locally, without relying on external support.
6. Monitor and evaluate: Develop a monitoring and evaluation plan to assess
the success of the project and identify areas for improvement. This could involve
tracking the impact of the project on the community, identifying changes in
behaviour, and tracking changes in the environment.
7. Foster partnerships: Foster partnerships between community organizations,
Govt. departments and other stakeholders to ensure ongoing support for the
project is very important for achieving desired outcomes.
63
11 CEPMIZ MANAGEMENT INFORMATION SYSTEM (CEPMIZ-
MIS)

The CEPMIZ MIS Portal can be accessed at the web-link -

[Link] and consists of the following modules as
explained with their respective usages:
Admin Module
1) KMERC SuperAdmin Shall create the user Credentials for the various
roles such as “Line Department District Officer”, “Line Department State
Nodal Officer”, Line Department HoD, “Implementing Officer” and
“Controlling Officer”
2) HoD of the Concerned Department can also create the user credentials
within the Department for the various roles such as “Line Department
District Officer”, “Line Department State Nodal Officer”, Line Department
HoD, “Implementing Officer” and “Controlling Officer”.
3) For Creation of any User following Details Needs to be provided:

Details Regarding User Creation

1 Title
2 First Name
3 Middle Name
4 Last Name
5 Department
6 Designation
7 User Role
8 Email Id
9 Mobile Number
10 District

4) KMERC SuperAdmin shall Create the Activity / Output.

64
Project Proposal Submission Module
1) Entry of project-proposals shall be made through the “Line Department
District Officer” login and submit to the “Line Department State Nodal
Officer” if the said project has been already approved by the concerned
Deputy Commissioner (DC). In such case, the document related to DC-
approval has to be uploaded along with the proposal.
a) If the Project has not been approved by Deputy Commissioner, then Line
Department District Officer shall not be able to send the proposals to the
State Nodal Officer. In this case Line Department District Officer would
send the proposals to Deputy Commissioner login.
b) “Deputy Commissioner” shall examine the entered details and forward the
Proposal to “Line Department State Nodal Officer” of the concerned
Department for further process. If “Deputy Commissioner” finds any
discrepancies or needs to make any change in the proposal, he/she can
revert back the proposal to “Line Department District Officer” for revision
with his/her comments.
2) In case a Line Department does not have any office at District level, then the
entry of project-proposals shall be made through the “Line Department State
Nodal Officer” login and submitted to the “Department HoD/Secretary to
Government”. If the said project has been already approved by the concerned
Deputy Commissioner (DC) then the document related to DC-approval should
be uploaded along with the proposal.
a) If the Project has not been approved by Deputy Commissioner, then “Line
Department State Nodal Officer” shall not be able to send the proposals to
the “Department HoD/Secretary to Government” login. In this case “Line
Department State Nodal Officer” would send the proposals to “Deputy
Commissioner”.
b) “Deputy Commissioner” shall examine the entered details and forward to
“Department HoD/Secretary to Government” of concerned Department for
further process after verifying the checklist available on the portal. If
“Deputy Commissioner” finds any discrepancies or needs to make any
change in the proposals, he/she can revert back the proposal to “Line
Department State Nodal Officer” login for revision with his/her comments.

65
3) Deputy Commissioner may take around 7 days for reviewing and forwarding
the proposal through the portal, failing which, the Project proposal shall be
moved automatically to the next level of review (State Authority or HOD).
4) Once the proposal is sent to the “Line Department State Nodal Officer” login,
“Line Department State Nodal Officer” shall examine the proposal and the
data along with the attachments and subsequently forward the Proposal to
“Line Department HoD/Secretary to Government”. If “Line Department State
Nodal Officer” finds any discrepancies or needs to make some change in the
proposal, he/she can revert back the proposal to “Line Department District
Officer” login for revision with his/ her comments.
5) Once the proposal is sent to the “Line Department HoD/Secretary to
Government” login, “Line Department HoD/Secretary to Government” shall
examine the entered data along with the related uploaded attachments and
recommended the same to KMERC by verifying the checklist available on the
portal. If “Line Department HoD/Secretary to Government” shall find any
discrepancies or needs to make some change in the proposals, he/she can
revert back the proposal to “Line Department State Nodal Officer” login or
“Deputy Commissioner” login for revision with his/ her comments.
6) Once the proposal is recommended by “Line Department HoD/Secretary to
Government” to KMERC, KMERC shall then evaluate the proposal. If the
proposal is found to be in order by KMERC, it shall be put up to the Hon’ble
Oversight Authority for approval, else, KMERC shall revert the proposal with
its observations back to the concerned department for any revision.
7) Once the Proposal is approved by the Hon’ble Oversight Authority, Approval
Communication letter shall be available in each concerned login for DPR
Preparation.

Approved DPR Details Module

1) Once the Proposal is approved, Proposal shall reflect in login of “Line
Department District Officer” and “Line Department State Nodal
Officer” of concerned Department for the entry of DPR Details.
2) Entry of DPR details shall be made through one of login from “Line
Department District Officer” and “Line Department State Nodal
Officer” and submit to “Line Department HoD/Secretary to

66
 Government”. if one login shall start the entry of DPR details then
another login shall not be able to make the entry of DPR Details.
3) Deputy Commissioner (DC) of concerned district shall be able to add
comment / remarks in DPR Details.
4) Following details shall be entered by the user:
a. Project Objectives
b. Project Outputs with their category / component, quantity and unit
cost.
c. Project Outcomes with Key Performance Indicator and
Assumptions /Risks
d. Stakeholders and their roles and responsibilities with influence /
impact on project.
e. Project Implementation schedule with duration cost for each
activity.
f. Post Project Implementation and sustainability mechanism with
funding source.
g. Mechanism for Project Implementation and Management.
h. Uploading of Data sheets, Google map, Taluka / Village map, topo
map / sketch.
i. Project Monitoring Framework with the details of the responsible
person for measurement and quality check.
j. Risk Category and Risk mitigation plan.
k. Village wise details of Community benefits and Individual benefits.
l. Cost of DPR Preparation and details of other cost.
m. Uploading of scanned copy of DPR acknowledgement submitted at
KMERC.
5) Once the entry of DPR details is done and submitted by Line
Department District Officer or Line Department State Nodal Officer to
“Line Department HoD/Secretary to Government, “Line Department
HoD/Secretary to Government” shall examine the entered data along
with the related uploaded attachments and sent the same to KMERC. If
67
 “Line Department HoD/Secretary to Government” shall find any
discrepancies or needs to make some change in the DPR Details, he/she
can revert back the DPR Details to “Line Department State Nodal
Officer” login or “Line Department District Officer” login for revision
with his/ her comments.
6) Once the DPR Details is sent by “Line Department HoD/Secretary to
Government” to KMERC, KMERC shall then evaluate the DPR
Details. If the DPR Details is found to be in order by KMERC, Approval
Communication shall be communicated to each concerned else,
KMERC shall revert the DPR Details with its observations back to the
concerned department for any revision.

Project Implementation and Monitoring Module

1) Once the DPR is approved by KMERC, Line Department shall map
Components / Activities / Output with Implementing Officer / Implementing
Agency.
2) Once the Components /Activity / Outputs Assigned to Implementing Agency,
the Implementing Agency shall create the works under Components /Activity
/ Outputs.
3) Following details shall be entered by the user for each works and packages:
a. Estimated Cost with Technical Sanctioned Details
b. Tender Details
c. Creation of Executing Agency / Contractor and mapping the work with
them
d. Entry of Successfully bidder quoted rate and bill of quantity.
e. Upload / Entry of the Tender Award Details
f. Upload / Entry of Contract Agreement / Work order details
g. Entry of Work Implementation Schedule
h. Entry of the Work Progress on Monthly / Quarterly basis, as mentioned
in the “Approved DPR Details Module”.
4) Once the Progress of any Project are entered by the users, then all the
concerned users can generate the physical progress report in Format- 3:

68
FORMAT-3: PROJECT PROGRESS REPORT
Sector Sub Sector District Taluk

Project Code Name of the Project Name of the PIA

Unit
Sl. Quantity as Quantity Executed Quantity Executed during Total Balance to be
(Ha/No/KM/
Project per Quantity as per up to last reporting the reporting Period from Quantity executed, as
No CUM/SqFt.) Remarks
Details KMERC Work Order period (Date:…......) (Date)……....To Executed till per Work
. (Please
Approval ….... (Date…....... date (….....) Order
Specify)

a b c d e f g h I = e-h j

Infrastructure/
New Asset
I Creation

i)

ii)

Renovation/Re
II pair
Rejuvenation

i)

ii)

Procurement of
Equipments &
III Machineries

i)

ii)

69
 Usage &
Maintenance of
IV
Assets created
under CEPMIZ

i) HR Cost

ii) Training
cost

iii) Program
cost

iv) Other cost

Administrative
cost for project
V
implementatio
n & M&E

i) staff cost

ii)Equipment’s

iii) Travel cost

iv)
Documentation
cost

v) Evaluation
cost

vi) Audit cost

VI Any other cost

(not covered by
70
any of the
above)

i)

ii)

iii)

TOTAL

71
 Financial Management Module:
1) After the Work Execution start, implementing Agency user shall initiate the fund
release request by entry of the “amount due for payment”, “details of financial
record” and details of “authority, who certified the quantity and quality” in
Format 4.
2) Implementing officer shall generate the format for seeking release of funds
required for the Project Expenditure and send it to concerned Controlling Officer
login after signing / digitally.
3) Controlling Officer shall examine the fund release request and send it to KMERC
after signing / digitally. Controlling officer can revert back the request for revision
with his/her comments.
4) After getting the request from implementing officer, KMERC Technical Section
shall examine the request and share the recommendation to KMERC Financial
Section.
5) KMERC Financial Section shall examine and evaluate the fund release request
and send recommendation to MD, KMERC.
6) If Fund release request is found in order, then KMERC CFO shall set the limit to
implementing officer for expenditure on Canara Bank Portal.
7) After the Expenditure is incurred on Canara Bank Portal, the details of expenditure
shall be reflected in the CEPMIZ MIS Portal.
8) On the basis of entered details, all the concerned users can generate the Financial
Progress Report for each Projects in Format 5.
9) Once the released fund shall be utilized by the implementing agency,
implementing agency can generate the Utilization Certificate in Format 6 and
send it to KMERC after signing / digitally.

72
Format 4: Seeking release of funds for Project Expenditure
Sector Sub Sector District Taluk

Project Code Name of the Project Name of the PIA

Amount as Total Amount

provisioned in the Details of Quantity of Amount Authority,
Sl. Name per Details of the Financial Remarks
Sanctioned who certified
of the KMERC Works Works due for records (Ref of PPR & FPRs
No Estimate the Quantity
work Approved completed completed payment maintained/available submitted/uploaded)
and Quality
DPR ( S.O. No.)
1 2 3 4 5 6 7 8 9 10

Total

73
Format 5: Financial Progress Report
Sector Sub -Sector District Taluk

Project Code Name of the Project Name of the PIA

Total
Amount Balance
Amount spent during Details of records maintained, as proof of
Amount as Amount spent till Amount to
Amount as reporting period expenditure
Project per KMERC spent till last date be spent,
[Link] per Work (From Date…......To (Cashbook/Bills/M.B./Sanctioned
Details Approved reporting (Date/ as per
Order Date…............. Estimates/etc.)-M.B./Cashbook to be
DPR period Month/ Work
) Uploaded
Quarter/ Order
Year)
1 2 3(a) 3(b) 4 (a) 4 (b) 4 (c ) 4 (d) 5

74
Format 6: Utilization Certificate
Sector Sub Sector District Taluk

Project Code Name of the Project Name of the PIA

Amount as Details of financial records

Previous Authorities
per KMERC Current maintained for the expenditure Kind of Checks
[Link]. Name of the work Expenditure for who certified
Approved Expenditure (MB/FNB/Vouchers/Cash book Exercised
the Work the bills
DPR etc)

1 2 3 4 5 6 7 8

Total =

50
12 ANNEXURES

12.1 Annexure 1 - Supreme Court Order approving CEPMIZ in-principle,

dated 21.04.2022

IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

I.A. No. 150757/2018, I.A. No. 143074/2019, I.A. No. 48538/2020, I.A.
No. 129650/2020
IN

WRIT PETITION (C) No. 562 OF 2009

SAMAJ PARIVARTANA SAMUDAYA

& ORS. ….. PETITIONERS

VERSUS

STATE OF KARNATAKA & ORS. ….. RESPONDENTS

ORDER
1. Based on the direction of this Court dated 21.03.2018, the State of

Karnataka had submitted the plan on 11.10.2018 being a

“Comprehensive Environment Plan for Mining Impact Zone

(CEPMIZ)” for the districts of Ballari, Chitradurga and Tumkur in

order to restore the environmental damage caused in the area by large

scale illegal and reckless mining and to ensure that the environment

in the area may not suffer from any such abuse and destruction in

future. The Central Empowered Committee (‘CEC’) had

recommended approval of the plan, with certain modifications, vide

51
 its reports dated 22.10.2018 and 16.4.2019. The ld. Amicus Curiae

has also submitted his note dated 19.06.2020 suggesting the

appointment of a Retired Judge of this Court to function as an

Oversight Authority for the implementation of the plan in question.

2. Having considered the submissions made by all the concerned parties

and of ld. Amicus Curiae, as recorded in the Note dated

19.06.2020 and on perusing the reports of the CEC dated 22.10.2018

and 16.04.2019, it is deemed appropriate to order as follows:

i. With the consent of all the parties, Hon’ble Mr. Justice

B. Sudershan Reddy, retired Judge of this Court is hereby

appointed as an Oversight Authority to oversee the works

and progress carried out by the Special Purpose Vehicle

i.e. Karnataka Mining Environment Restoration

Corporation (‘KMERC’). Hon’ble Mr. Justice B.

Sudershan Reddy is requested to assume charge as an

Oversight Authority in terms of the orders of this Court

with immediate effect and inform the State Government of

his taking charge as early as possible.

ii. Hon’ble Mr. Justice B. Sudershan Reddy is at liberty

to take the assistance of one or two officers of the State of

52
 Karnataka and/or retired Judge(s) of the High Court of his

choice to assist him for this purpose. It is made clear that

day to day oversight would not be necessary.

iii. In-principle approval is granted to the CEPMIZ plan

submitted by the State of Karnataka, as recommended

by the CEC in its reports dated 22.10.2018 and

16.04.2019. However, the parties are at liberty to place

any objections or submissions before the Oversight

Authority with regard to the CEPMIZ Plan. The

Oversight Authority shall decide the said objections or

suggest modifications after hearing the parties and

taking the assistance of any expert, including the CEC,

as may be required. If any clarification is required, the

parties would be at liberty to approach this Court.

iv. Priority of the projects and/or individual projects to be

taken up and implemented by the KMERC under the said

CEPMIZ plan shall be as per the discretion of the

Oversight Authority.

v. The amounts as collected in terms of the orders passed

by this Court in the present matter shall be utilized by

the KMERC under the supervision of the Oversight

53
 Authority in the mining affected districts of Ballari

(including new district of Vijayanagara carved out from

Ballari district vide Notification dated 08.02.2021),

Chitradurga and Tumkur.

vi. The SPV funds accrued, excluding the committed

expenditure and contingent liabilities including

reimbursement of funds released by the CEC to the

Monitoring Committee, is hereby ordered to be

transferred by the Monitoring Committee to the

KMERC, for implementation of the projects under the

CEPMIZ. Future accruals to the SPV account in terms

of the orders passed by this Court shall be transferred

to the KMERC by the Monitoring Committee at the end

of every quarter.

vii. The State Government is directed to issue specific

orders for operationalization of the bank accounts for

channelizing the receipts and expenditure as was done

vide Notification dated 29.08.2017 issued by the

Finance Department, Government of Odisha.

viii. Quarterly reports of performance shall be filed by the

54
 SPV before the Oversight Authority during the first year.

Thereafter, the same shall be filed by the SPV every six

months.

ix. In addition, having regard to the nature of the funds and

quantum of funds involved in the matter, the CEC may

also undertake complete on-the-spot verification about

utilization of the moneys and file a report before Ld.

Oversight Authority.

x. The Oversight Authority may consult the Comptroller

and

Auditor General (CAG) and the Principal Accountant

General to ensure that idle and reserve funds may be

deposited in the highest yielding risk-free

instruments/securities.

xi. It will be open to the Oversight Authority to approve the

appointment of such Auditors as he may consider

appropriate or request the CAG to get a distinct and

accurate account of the expenditures incurred by the

KMERC from the SPV funds.

55
 xii. Implementation of the railway infrastructure as per the

Railway Backbone Report, including DPRs of railway

sidings and sublines submitted to this Court may be

considered by the Oversight Authority and implemented

as may be required.

3. The Oversight Authority may submit the first report to this Court, as

and when he deems appropriate.

4. We request the Oversight Authority to send his proposal as to

remuneration and office expenditure to enable us to pass orders.

5. In terms of the aforesaid directions I.A. No. 150757/2018, I.A. No.

143074/2019, I.A. No. 48538/2020 and I.A. No. 129650/2020 filed

by the State of Karnataka stand disposed of.

.................................CJI.
[N. V. RAMANA]

...................................J.
[KRISHNA MURARI]

...................................J.

[HIMA KOHLI]

New Delhi,

56
12.2 Annexure 2 - List of mining affected villages*

List of mining affected Taluka and Villages

[Link]. District Taluka Village
1 Ballari Sandur Sandur
2 Ballari Sandur Venkatagiri
3 Ballari Sandur Jaisingpura
4 Ballari Sandur Yammihatti
5 Ballari Sandur Siddapura
6 Ballari Sandur Bhavihalli
7 Ballari Sandur Daulatpura
8 Ballari Sandur Laxmipura
9 Ballari Sandur Dharmapura
10 Ballari Sandur Yeshavanthnagara
11 Ballari Sandur Somalapura
12 Ballari Sandur Bhandri
13 Ballari Sandur Nandihalli
14 Ballari Sandur 18-Hulikunte
15 Ballari Sandur Subrayanahalli
16 Ballari Sandur Kammatthuru
17 Ballari Sandur Deogiri
18 Ballari Sandur Hanumanahalli
19 Ballari Sandur Devaramallapura
20 Ballari Sandur Swamihalli
21 Ballari Sandur Thonasageri
22 Ballari Sandur Yedrammanahalli
23 Ballari Sandur Gollalingammanahalli
24 Ballari Sandur Appenahalli
25 Ballari Sandur Mothulukunte
26 Ballari Sandur Santegudda
27 Ballari Sandur Nagenahalli
28 Ballari Sandur Hanumanahalli
29 Ballari Sandur Krishnarajapura
30 Ballari Sandur Bhandravi
31 Ballari Sandur Mallapura

57
32 Ballari Sandur Hanumanagudda
33 Ballari Sandur Rajapura
34 Ballari Sandur Hanumalapura
35 Ballari Sandur Ubbalagundi
36 Ballari Sandur Vitthalanagara
37 Ballari Sandur Narasingapura
38 Ballari Sandur Narasapura
39 Ballari Sandur Bhujanaganagara
40 Ballari Sandur Krishnanagara
41 Ballari Sandur Muraripura
42 Ballari Sandur Tharanagara
43 Ballari Sandur Lingadahalli
44 Ballari Sandur Gowripura
45 Ballari Sandur Bannihatti
46 Ballari Sandur Nagalapura
47 Ballari Sandur Taalooru
48 Ballari Sandur Vaddu
49 Ballari Sandur Basapura
50 Ballari Sandur Kurekuppa
51 Ballari Sandur Bhuvanahalli
52 Ballari Sandur Gadiganuru
53 Ballari Sandur Sulthanpura
54 Ballari Sandur Chikkanthapura
55 Ballari Sandur Anthapura
56 Ballari Sandur Marutla
57 Ballari Sandur Koracharahatti
58 Ballari Sandur Kodalu
59 Ballari Sandur Chikkalamatti
60 Ballari Sandur Aavinamadagu
61 Ballari Sandur Vitthalapura
62 Ballari Sandur Rampura
63 Ballari Sandur Kere Rampura
64 Ballari Sandur Thimmalapura
65 Ballari Sandur Upparahalli
66 Ballari Sandur Chikka Upparahalli

58
67 Ballari Sandur Kalingeri
68 Ballari Sandur Choranur
69 Ballari Sandur C.K. Halli
70 Ballari Sandur H.K. Halli
71 Ballari Sandur Kapatraalu
72 Ballari Sandur Mallapura
73 Ballari Sandur Devarabudenahallli
74 Ballari Sandur Bommaghatta
75 Ballari Sandur Gollarahatti
76 Ballari Sandur Yarranahalli
77 Ballari Sandur Metriki
78 Ballari Sandur M-Ramasagara
79 Ballari Sandur Lakkenahalli
80 Ballari Sandur Gollarahatti
81 Ballari Sandur Ranjeethpur
82 Ballari Sandur Gangalapura
83 Ballari Sandur Nidugurthi
84 Ballari Sandur Kaatinakamba
85 Ballari Sandur Hulikunte
86 Ballari Sandur Ramghad
87 Ballari Sandur Thoranagallu
88 Ballari Sandur Jigenahali
89 Ballari Sandur Thumti
90 Ballari Sandur Thumbaraguddi
91 Ballari Sandur Tumti Thaanda
92 Ballari Ballari Bellary
93 Ballari Ballari Haraginadona
94 Ballari Ballari Belagal Thanda
95 Ballari Ballari Belagal
96 Ballari Ballari Jenekunte
97 Ballari Ballari Halakundi
98 Ballari Ballari Sanjeevarayanakote
99 Ballari Ballari Honnalli
100 Ballari Ballari Honnalli Thanda
101 Ballari Ballari Hagari

59
102 Ballari Ballari Kuduthini
103 Ballari Ballari Veni Veerapura
104 Ballari Ballari Alipura
105 Ballari Ballari Aaladahalli
106 Chitradurga Holalkere Tanigehalli
107 Chitradurga Chitradurga Bheemasamudra
108 Chitradurga Chitradurga V Palya
109 Chitradurga Holalkere Hirekandawadi
110 Chitradurga Chitradurga Meghalahalli
111 Chitradurga Chitradurga Marijogihalli
112 Chitradurga Chitradurga Kadlegudda
113 Chitradurga Chitradurga Bommavvanagthihalli
114 Chitradurga Chitradurga Thurebailu
115 Chitradurga Chitradurga Malali
116 Chitradurga Chitradurga Nallikatte
117 Chitradurga Chitradurga Hireguntanur
118 Chitradurga Chitradurga Haliyuru
119 Chitradurga Chitradurga Bettadannagenahalli
120 Chitradurga Chitradurga Basavapura
121 Chitradurga Chitradurga Amruthapura
122 Chitradurga Chitradurga Dindanahalli
123 Chitradurga Chitradurga Bommenahalli
124 Chitradurga Chitradurga Siddapura
125 Chitradurga Chitradurga Manangi
126 Chitradurga Chitradurga Maalappanahatti
127 Chitradurga Chitradurga Konanuru
128 Chitradurga Chitradurga Chikkenahalli
129 Chitradurga Chitradurga [Link]
130 Chitradurga Holalkere Muthugaduru
131 Chitradurga Holalkere Kagalagere
132 Chitradurga Holalkere B Durga
133 Chitradurga Chitradurga Alaghatta
134 Chitradurga Chitradurga Sirigere
135 Chitradurga Holalkere Sasalu
136 Chitradurga Holalkere Ganjikatte

60
137 Chitradurga Chitradurga Obavvanagthihalli
138 Chitradurga Chitradurga Siddavvanahalli
139 Chitradurga Chitradurga Doddiganahal
140 Chitradurga Chitradurga [Link]
141 Chitradurga Holalkere Oodigere
142 Chitradurga Holalkere Horakenahalli
143 Chitradurga Holalkere Tyagadahalli
144 Chitradurga Holalkere Shanubhoganahalli
145 Chitradurga Holalkere Chowdanahalli
146 Chitradurga Hosadurga Doddabyaladakere
147 Chitradurga Hosadurga Chikkabyaladakere
148 Chitradurga Hosadurga Byadarahalli
149 Chitradurga Hosadurga Jayasuvarnapura
150 Chitradurga Hosadurga Kittadal
151 Chitradurga Hosadurga Naganaikanahatte
152 Chitradurga Hosadurga Mugulodu
153 Chitradurga Hosadurga Kanchpura
154 Chitradurga Hosadurga Lakkihalli
155 Chitradurga Hosadurga Sampanaikanahalli
156 Chitradurga Hosadurga Hanumanahalli
157 Chitradurga Hosadurga Doddakittadahalli
158 Chitradurga Hosadurga Nakikere
159 Chitradurga Hosadurga Madadakere
160 Chitradurga Hosadurga Madadakere
161 Chitradurga Hosadurga Veeravanagathihalli
162 Chitradurga Hosadurga Seeranakatte
163 Chitradurga Hosadurga Bandihalli
164 Chitradurga Hosadurga Sannakittadahalli
165 Chitradurga Hosadurga Kenchihalli
166 Tumakuru Chikkanayakanahalli Honnebagi
167 Tumakuru Chikkanayakanahalli Gollarahallli
168 Tumakuru Chikkanayakanahalli Thonnalapura
169 Tumakuru Chikkanayakanahalli Lakkenahalli
170 Tumakuru Chikkanayakanahalli Bullennalli
171 Tumakuru Chikkanayakanahalli Manchakatte

61
172 Tumakuru Chikkanayakanahalli Sondenalli
173 Tumakuru Chikkanayakanahalli Somanalli
174 Tumakuru Chikkanayakanahalli Doddarampur
175 Tumakuru Chikkanayakanahalli Janehara
176 Tumakuru Chikkanayakanahalli Sadarahalli
177 Tumakuru Chikkanayakanahalli Ashrihal
178 Tumakuru Chikkanayakanahalli Yarrekatte
179 Tumakuru Chikkanayakanahalli Kamanahalli
180 Tumakuru Chikkanayakanahalli Kenkere
181 Tumakuru Gubbi Kondli
182 Tumakuru Gubbi Mudalapalya
183 Tumakuru Gubbi Shivasandra
184 Tumakuru Gubbi Mavinahalli
185 Tumakuru Tiptur Rajatadripura
186 Tumakuru Tiptur Karekurchi
187 Tumakuru Tiptur Hatyal
188 Tumakuru Gubbi Musakondli
189 Tumakuru Gubbi Honnenahalli
190 Tumakuru Gubbi Bayatappanapalya
191 Tumakuru Gubbi Yemmedoddi
192 Tumakuru Tiptur Guddadapalya
193 Tumakuru Chikkanayakanahalli Salukatte
194 Tumakuru Chikkanayakanahalli Salukattepalya
195 Tumakuru Chikkanayakanahalli Salukatte Tandya
196 Tumakuru Chikkanayakanahalli Godekere
197 Tumakuru Chikkanayakanahalli Kodekere Hatti
198 Tumakuru Chikkanayakanahalli Ranganathapura
199 Tumakuru Chikkanayakanahalli Banadevara Hatti
200 Tumakuru Chikkanayakanahalli Honnebagi Kaymp
201 Tumakuru Chikkanayakanahalli Hosahalli
202 Tumakuru Chikkanayakanahalli Bagganahalli
203 Tumakuru Chikkanayakanahalli Naduvanahalli
204 Tumakuru Chikkanayakanahalli Narasihalli
205 Tumakuru Chikkanayakanahalli Chikkarampura
206 Tumakuru Chikkanayakanahalli Kathrikehal

62
207 Tumakuru Chikkanayakanahalli Thirthahalli
208 Tumakuru Chikkanayakanahalli Jogihalli
209 Tumakuru Chikkanayakanahalli Guruvapura
210 Tumakuru Chikkanayakanahalli Ajjigudde
211 Tumakuru Chikkanayakanahalli Ramanahalli
212 Tumakuru Chikkanayakanahalli J C Pura
213 Tumakuru Chikkanayakanahalli Kadenalli
214 Tumakuru Chikkanayakanahalli Chikkanayakanalli
215 Tumakuru Chikkanayakanahalli Savigehalli
216 Tumakuru Chikkanayakanahalli Andanakatte
217 Tumakuru Chikkanayakanahalli Ballekatte
218 Tumakuru Chikkanayakanahalli Bailappana Mata
219 Tumakuru Chikkanayakanahalli Ankanabavi
220 Tumakuru Chikkanayakanahalli Avalagere
221 Tumakuru Chikkanayakanahalli Chikkabidare
222 Tumakuru Chikkanayakanahalli Doddabidare
223 Tumakuru Chikkanayakanahalli Pochakatte
224 Tumakuru Chikkanayakanahalli Huliyaru
225 Tumakuru Chikkanayakanahalli Bhavanahalli
226 Tumakuru Gubbi Kanchaganahalli
227 Tumakuru Gubbi Badavanahalli
228 Tumakuru Gubbi Honnakambihatti
229 Tumakuru Gubbi N. Hosahalli
230 Tumakuru Gubbi Devarahatti
231 Tumakuru Gubbi Doddaguni
232 Tumakuru Gubbi Guddada Obalapura
233 Tumakuru Gubbi Guddada Hatti
234 Tumakuru Gubbi Karadi Kallu
235 Tumakuru Gubbi Yallapura
236 Tumakuru Gubbi Virupakshipura
237 Tumakuru Gubbi Bommarasanahalli
238 Tumakuru Gubbi Hosahatti
239 Tumakuru Gubbi Basavanagudi
240 Tumakuru Tiptur Ayyanapalya
241 Tumakuru Tiptur Kamagondanahalli

63
242 Tumakuru Tiptur Yachikatte
243 Tumakuru Tiptur Biligere
244 Tumakuru Tiptur K.B. Cross
245 Tumakuru Tiptur Hatna
246 Tumakuru Tiptur Tharabenahalli
247 Tumakuru Tiptur Halugona
248 Tumakuru Tiptur Harenahalli
249 Vijayanagara Hosapete Hospet
250 Vijayanagara Hosapete Kaniverayanahalli
251 Vijayanagara Hosapete Rajapura
252 Vijayanagara Hosapete Kallahalli
253 Vijayanagara Hosapete Vyasanakere
254 Vijayanagara Hosapete Mariyammanahalli
255 Vijayanagara Hosapete Hanumanahalli
256 Vijayanagara Hosapete Mariyammanahalli
Thanda
257 Vijayanagara Hosapete Dhanapura
258 Vijayanagara Hosapete Galemmanagudi
259 Vijayanagara Hosapete Dhananayakanakere
260 Vijayanagara Hosapete Devalapura
261 Vijayanagara Hosapete Gollarahalli
262 Vijayanagara Hosapete Garaga
263 Vijayanagara Hosapete Nagalapura
264 Vijayanagara Hosapete Gunda Thanda
265 Vijayanagara Hosapete Gunda village
266 Vijayanagara Hosapete Aiyyamahalli
267 Vijayanagara Hosapete Nagalapura thanda
268 Vijayanagara Hosapete Kariganuru
269 Vijayanagara Hosapete Byalakundi
270 Vijayanagara Hosapete Bylavaddigere
271 Vijayanagara Hosapete Vaddarahalli
272 Vijayanagara Hosapete Papinayakanahalli
273 Vijayanagara Hosapete Kakubaala
274 Vijayanagara Hosapete Joga
275 Vijayanagara Hosapete Dharmasagara

64
 276 Vijayanagara Hosapete Gornahatti
277 Vijayanagara Hosapete Gundluvaddigere
278 Vijayanagara Hosapete Ingalagi
279 Vijayanagara Hosapete Basapura
280 Vijayanagara Hosapete Harovanahalli
281 Vijayanagara Hosapete Sanklapura Camp
282 Vijayanagara Hosapete Shankara nagara Camp
283 Vijayanagara Hosapete Jambunathahalli

*Provided by Department of Mines & Geology and reviewed/to be reviewed by

Deputy Commissioner

65
12.3 Annexure 3 – Help notes for DPR preparation.

1. Table of Contents / Index 2. Project at a Glance / Salient Features /

Executive Summary
As the name suggests, this should contain overall summary of the project, giving
all the salient features of the project in 2 to 3 pages.

The Executive Summary of the project should summarize all the sections of the
DPR (listed below) to give a birds-eye view of the entire project with a brief
reading. Only the key overall figures/ numbers like total project cost major project
outputs (activities & quantities), project-duration, specific measurable outcomes,
the mechanisms for project governance & management and post-project
sustainability, coverage area, no. of beneficiaries, etc., need to be provided.

A one-pager summary of the project is to be given in the format in Annexure-4.

(The template for this format can also be accessed under “Documents” section -
> “Guidelines & Formats for Preparation of DPR“, on the home page of KMERC
website at: [Link]
4/Guidelines+&+Formats+for+Preparation+of+DPR/en).

2. Introduction and Background

This section should provide a brief background of the Sector/Sub-Sector/Project,
the priorities of the District and the Project-Area, the Implementation Strategy,
and Policy/ Institutional Framework, in addition to a brief description of the
existing situation for all these aspects.
The problems to be addressed through the project at the local /regional level, as
the case may be, should be elaborated here. Evidence regarding the nature and
magnitude of the problems should be presented, supported by baseline
data/surveys/reports/pictures. Clear evidence should be available regarding the
nature and magnitude of the problems to be addressed.
The Implementation Strategy should cover aspects of prioritization of locations,
involvement of Community Organizations like Cooperative Societies, SHGs etc.,
in addition to aspects of convergence with other schemes/funds or adoption of
mechanisms such as public-private partnership wherever relevant.

66
[Link] Objectives
This section should indicate the Project-Objectives proposed to be achieved,
ranked in order of importance- the higher-level objectives should be mentioned
first followed by lower-level objectives. The deliverables/ outputs for each
Project -Objective should be summarized point-wise here. This section should
also provide an overall description of how the proposed project shall ensure
achievement of the Project-objectives.

5. Broad Categories of Interventions/ Components proposed

This section should mention the broad categories or major work components
proposed under the project with reference to the current condition and the
envisaged project-objectives.

While preparing the DPR, various alternatives may also be explored before
finalizing the interventions to achieve the project objectives.

This section should elaborate on how duplication will be avoided, and synergy
will be created through the proposed project interventions . Any
innovative/cost effective/ Green technology proposed to be adopted/ used in the
project should be highlighted here.

Lastly, the basis for prioritization of project locations for these interventions
should be indicated where relevant.

6. Project Outputs (Activities & Quantities)

This section should provide a brief of the intended Outputs of the project and,
detail out all the activities along with their respective quantities and locations in
the project area for each of the Project-Outputs. The Unit/ Average Costs should
be mentioned here for each output (as applicable) as per actuals.

The corresponding locations/ maps / designs (if / where applicable) can also be
provided for reference (either in this section or in Annexures to the DPR) for each
of the proposed activities / outputs.

7. General Abstract of Cost

This section should contain an overall summary of all costs proposed to be
incurred for the project under separate headers (but not limited to) listed below

67
as applicable. This section should clearly portray how each cost has been arrived
at/ calculated.
a. Work Expenditure (Activity-wise)
This sub-section should give a summary break-up of all activity-wise costs /
expenditures proposed to be incurred for the project. The cost-items under this
header may be grouped into costs related to Creation of New Assets,
Renovation / Strengthening / Upgradation, Beneficiary related Costs, etc.

b. Equipment & Machinery (if applicable)

This sub-section should give a summary break-up of all Equipment &
Machinery (if applicable) proposed to be procured for the project.

c. Other Expenditure (if applicable)

This sub-section should give a summary break-up of all recurring costs /
expenditures proposed to be incurred for the project. The cost-items under this
header may be sub-categorized into costs related to Training / Capacity
Building, HR/Staffing Costs, Maintenance Costs, etc.

8. Envisaged Outcomes / Benefits

This section should elaborate on all the potential/ foreseeable benefits
(outcomes) of implementing the proposed project to the mining-affected people/
area, with special focus on the benefits to primary beneficiaries. Around 3
outcomes could be arrived and provided.
The outcomes, which are measurable through certain parameters and have some
Base-line data/ other pre-implementation data available from primary and
secondary sources, may be chosen. Post-implementation/ future projections (for
1, 3, 5 or up to 10 years after project-implementation, depending on the project
duration) for each outcome may also be given.
The corresponding assumptions made / inherent risks in choosing the said
parameters could also be mentioned for each of the envisaged project-outcomes.
The success of the project will be assessed at the end of the project (Impact
Assessment) based on these data parameters before and after implementation of
the project.

9. Monitoring & Evaluation Framework

This section should elaborate on the proposed framework for concurrent
monitoring of the project. This should include activity/output-wise details on who

68
will be responsible for its measurement, counter-checking, quality-checking and
approval respectively. The parameters to be measured and the frequency/
periodicity of their measurement should also be mentioned for each
activity/output.

Evaluation framework should elaborate on the mechanism (the “who”, “what”,

“how” & “when”) of the Impact Assessment/ Project Evaluation to be undertaken
at the end of Project-implementation period. The criteria for objectively assessing
the success of the project with respect to the baseline/ pre-implementation data
for each Output and Outcome(individual/collective) should also be specified
here.

In this regard, either each project can have a Monitoring and Evaluation (M&E)
agency, or all projects from a Department can have one agency for M&E for
concurrently monitoring and also for end of the project evaluation. Alternatively,
the Department can utilize its internal concurrent monitoring system and engage
an agency only for project-end evaluation.

10. Stakeholders’ Consultation and their Inputs

While preparing DPRs, relevant inputs and feedback should be obtained from
both Primary and Secondary Stakeholders to ensure that only those assets which
are required and can be utilized and maintained, are created under the project.

In this regard, it is suggested that the Primary Stakeholders like Students/ Parents
(in case of Education sector projects), Patients (in case of Health sector projects),
Farmers (in case of Agriculture & allied sector projects), Villagers (in case of
Rural Development projects), etc., and Secondary Stakeholders including the
Elected Representatives, Local Bodies, allied Departments, and the District
Administration, may also be consulted.

The details of such consultations with dates and no. of interactions/ meetings/
surveys etc. should be provided in this section or annexures.

Further, the Stakeholder Analysis of the proposed project could be worked out
in the format provided in Annexure 5. (The template for this format can also be
accessed under “Documents” section -> “Guidelines & Formats for Preparation
of DPR“, on the home page of KMERC website at:

69
[Link]
Preparation+of+DPR/en%20).

11. Project Implementation Calendar

This section should depict a monthly/ quarterly and annually, or milestone-wise
work-plan in the form of a Gantt Chart for all the proposed project activities.
For projects with duration upto 1 year, monthly implementation calendar needs
to be provided; for project-durations more than one year, quarterly
implementation calendar has to be given for upto 2 years duration, and beyond
that, for each major output/activity annual implementation calendar has to be
given.

12. Expenditure Schedule (vis-a vis the Implementation Calendar)

This section should provide a table depicting how much amount is proposed to
be spent for each period (month/ quarter / year) for all the project outputs/
activities mentioned in the Implementation calendar.

The expenditure schedule should correspond to the quantity of work planned to

be executed for each activity vis-a vis the implementation calendar.

13. Risk Management Strategy for Project Implementation

Each project involves various types of stakeholders (local/ administrative/
technical/ financial, etc.) and is impacted by the capacity created or otherwise, for
its implementation and monitoring. Further, there could be issues related to land
acquisition or site-procurement or other challenges. There are also climate-related
or anthropogenic factors which may affect the project-implementation.

Based on the severity of the risk – whether low, medium or high- suitable
mitigation measures need to be thought of to mitigate the risk and included in this
section of DPR.

14. Institutional Mechanism for Project Governance and Management

Details on the works-approval process and related administrative hierarchy
specific to the project, such as which Office of the Department (District Officer/
State HQ/ Any other level) will call for Tender, issue Work Orders, supervise
implementation, incur expenditure, submit physical & financial progress etc.,
should be provided in this section.

70
The Officers responsible for monitoring at Divisional level and HQ level, and the
capacity available/ created for CEPMIZ project implementation should be
mentioned in this section.

15. Post - Implementation Maintenance and Sustainability Mechanism

This section should provide details on how the assets created under the project
shall be maintained and sustained after the project-implementation. The means of
addressing the post-implementation funding and human resources requirements
need to be elaborated, in addition to providing a satisfactory project-governance
mechanism for operations and maintenance of the project-assets post
implementation.

For example., the assets created under Education Sector could be maintained by
the SDMCs with the school-fee or Departmental Grants or both. The asset created
under Watershed Projects are to be maintained by Gram-Panchayats through
Watershed Committees specifically constituted for project-implementation with
the resources generated in WDF out of contributions from individual assets
created.

16. Annexures
a. Maps / Sketches, showing location of works
i. Taluka/ Village Map
ii. Google Map: (Mandatory - *.KML/ *.KMZ/ *.SHP files only)
iii. Topo Map/ Any Other Map/ Sketch

b. List of Beneficiaries / Villages / Habitations (As Applicable)

Whether these are directly or indirectly affected by mining should be
indicated.

c. Other details / supporting documents, references as required

The project DPRs will be appraised based on:

1. The quantity and kind of works/outputs/activities involved, their unit costs,

and on what basis those unit costs are arrived and whether it is reasonable.

2. How the project execution will be carried out.

71
 For this purpose, there has to be a dedicated capacity under each Implementing
District/ State Officer for performing various tasks related to project
implementation, supervision/ monitoring, quality checking, documentation
and for regular reporting of physical and financial progress to the Department
and KMERC.

For above purpose, a CEPMIZ Project Implementation & Monitoring Cell at

the District Officer’s level needs to be created, which could be headed by a
senior technical / administrative officer and involving a suitable resource and
support staff. Similarly, at the State HQ of the Department, a CEPMIZ Project
Monitoring Cell needs to be created, headed by a senior technical /
administrative officer of the Department and involving a suitable resource and
support staff.

For creation of the aforesaid Cells at the District and State HQ levels,
provisions need to be made in the DPR within 1% of the Project Cost.

3. At the KMERC level, the project appraisal would focus on the benefit likely
to accrue from the project. This means the outcomes need to be clearly
ascertained while preparing the DPR with present levels and what changes are
expected in those outcomes after 1, 3, 5 or up to 10 years of the project-
implementation, depending on the project-duration.
The outcomes/benefits could be few but must be measurable. The kinds of
outcomes likely from various projects could be referred from the Format-2 of
the projects for which funding has been approved and uploaded in the
KMERC website.

4. Regarding post-project sustainability mechanism, while preparing the DPR,

how the asset created from the project funding would be utilized and
maintained after the project period, and from where the resources would come,
need to be clearly mentioned.
This means the institution responsible for such maintenance and source of
funding – whether user fee or Departmental Budget – need to be mentioned.
Wherever additional financial implications are involved on the State Budget,
in such cases, before starting the project implementation, Government
approval needs to be obtained for such liabilities.

72
 Notes on Technical DPRs
 A particular project may involve multiple works and as many detailed
estimates, which are to be independently executed. In such cases, after as
many Technical DPRs/ detailed estimates are prepared and submitted for
scrutiny of the competent Technical Authority, such details may be
mentioned in the project DPR submitted for appraisal. This would save
time.
However, the final approval of the project and its implementation can
start only after the technical scrutiny of the Technical DPR/ detailed
estimates by the competent authority.

 A project may involve multiple works at multiple locations, which could

be divided into suitable packages for ease of implementation and
monitoring.

 The Project Information Boards (PIB) need to be provided for each project
giving details as in the format provided in Annexure 7. The PIBs need to
be legibly displayed at prominent location(s) in a suitable form which
should last for at least 10 years, and should include all the information as
required in the format provided in Annexure 7, in addition to any other
Project Specific Information that the concerned Department may like to
display for the project. (The template for this format can also be accessed
under “Documents” section -> “Guidelines & Formats for Preparation of
DPR“, on the home page of KMERC website at:
[Link]
s+for+Preparation+of+DPR/en%20 )

Notes on Cost towards DPR preparation, Project Monitoring &

Evaluation, Administrative Cost and total Project Cost:

 The DPRs – Technical and Project DPRs – are to be prepared after

perambulation of the site by the Officers of the concerned Department
proposing the project, and the Technical Officer/ Consultant/ Agency
entrusted with DPR preparation, and after taking actual measurements of
the quantity of the work involved at each site.

73
 For various works, there could be Model Cost-estimates/Data-sheet/
Template available within the Department for the year, which could be
utilized for preparation of technical DPRs.

 The cost estimation for each work has to be arrived based on the sanctioned
schedule of rates of the concerned Sector/ Department, for works for which
no model cost-estimates/ Data-sheet are available.

 Where detailed engineering designs and drawings are not involved, it is

suggested to prepare the Technical DPR by the Department itself, or by
engaging suitable resources. For projects whose DPRs can be prepared
within Rs. 5 Lakh, it can be directly entrusted to any consultant or agency
after obtaining suitable quotations.

 For projects whose DPRs preparation require more than Rs. 5 Lakh, and if
already empanelled agencies are available or agencies with 4(g)-
Exemption are available, in such cases their services can be directly
utilized, provided they have the capacity and relevant experience.

 Wherever tenders need to be called, in case of various kinds of urgency,

short term tender could be called for preparation of DPR after taking
approval from the competent authority.

74
12.4 Annexure 4 - Project at a Glance

Sector Sub- Standalone project or

Sector in convergence
Project type :
Project name New/Upgradation/Strengthening/
Rejuvenation
Proposal submitted by Implementing
Agency
Project Location/ Total Project Cost Project
Coverage (INR Cr.) Duration (yrs)
Project 1. 3.
Objectives/Benefits 2. 4.
Project Outputs/Activities Project Outcomes/Benefits
S Major Project Unit Qty. Unit Total Sl. Major Envisaged Outcomes Parameter for Assumptions/
l. Outputs/Activities (Ha/ / Cost Cost N (Measurable Benefits) measuring the Risks in choice
n Km/ Nos (in (Lakh o Benefit of parameter
o any . Rs.) Rs.) 1
other) 2
1 3
2 4
3 5
4 6
5 7
Total Project Cost (Lakh Rs.)
Project Implementation & Expenditure schedule (Year - Wise Scheduling)
75
 Sl. Major Project Component <Yr 1 <Yr 2 <Yr 3 <Yr 4 <Yr 5 …………. …<Yr Total
N exp. exp. In exp. exp. In exp. ‘N’ exp. Amount
o In Lakh Lakh In Lakh Lakh In Lakh In Lakh (Lakh Rs.)
Rs.> Rs.> Rs.> Rs.> Rs.> Rs.>
1 <Component 1>
2 <Component 2>
3 <Component 3>
4 <Component 4>
5 <Component 5>
Post-project implementation Sustainability / Operations and Maintenance

76
12.5 Annexure 5 - Project stakeholder assessment

Stakeholder Type
(Individual/ Stakeholder role
Stakeholder’s Project’s
Group/ (Implementation Agency/
Influence on the Impact on the Stakeholder
Sl. Stakeholder Institution/ Convergence Partner/
Project Stakeholder Engagement
no Name Agency/ funding Agency/
Community Group/ (High/ Medium / (High/ Medium Approach/ Plan
Other-Please Low) / Low)
Specify) Other – Please Specify)

77
12.6 Annexure 6 - Risk management strategy

Sl Risk Category Risk Risk Risk Residual

No (Legal / Description Rating Mitigation Risk Rating
Revenue/ (High/ Plan (High/
Project Medium/ Medium/Low)
Management/ Low)
Social/
Environmental/
Regulatory,
etc.)
1

2.

3.

78
12.7 Annexure 7 – Project Information Board (PIB)

CEPMIZ Project funded by KMERC

Name of the Project: __________________________________________

Project Code: ________________________________________________
Major Activity:________________________________________________
Village: ______________ Gram Panchayat: _________________________
Taluka: ______________ District: _________________________________
Sanctioned Amount: ____________________________________________
Date of commencement: ________________________________________
<Name of the Department>, Govt. of Karnataka

79
12.8 Annexure 8 – Conditions for Administrative Approval

1. The approved works shall be taken up as per the Karnataka Transparency in

Public procurement (KTPP)Act, 1999 and relevant clauses of the Karnataka
Government (Transaction of Business) Rules, 1977.

2. The same work(s), either in whole or in part(s), shall not be taken up under
DMF or any other Central/ State Scheme(s) on the same site/location, unless
specifically approved by KMERC as “Convergence” work - in which case
the financing pattern of the works and the amount sanctioned by KMERC
needs to be mentioned in the Sanction Order.

3. Before release of funds, the concerned Administrative Department/

Implementing Government Agency shall submit an undertaking that no such
fund has been received from any other source for the same purpose when the
proposed project is entirely funded under CEPMIZ by KMERC.

4. The funds earmarked and approved for the proposed

category/categories/location(s) of works, must be utilized exclusively for the
respective category/categories/location(s) of works only, and cannot be
diverted for other categories/location(s) of works.

5. The concerned Administrative Department/ Implementing Government

Agency shall provide the quarter-wise implementation calendar and
expenditure schedule for release of funds.

6. The concerned Administrative Department/ Implementing Government

Agency may not entrust the implementation of the approved work(s) to
another Administrative Department/ Implementing Government Agency
without express permission of KMERC.

7. The concerned Administrative Department/ Implementing Government

Agency must verify Project Proposals, related scheme guidelines, and
sanction Action-Plans before releasing any money to the concerned Project
Implementing Officers.

8. The concerned Administrative Department/ Implementing Government

Agency shall be solely responsible for resolving all financial liabilities and
land-related disputes or any other disputes related to the approved project-
works.

9. The expenditure of the project should not be more than the sanctioned
amount. It may please be ensured that the expenditure be managed within
the available and approved funds only.

80
10. Any fund left un-utilized including accumulated interest-amount, post
project-implementation or in the given/ target timelines, shall be necessarily
surrendered back to KMERC along with the corresponding Utilization
Certificate (UC) by the concerned Administrative Department/ Government
Agency.

11. Human resources that may be engaged for implementation of approved

work(s) are not to be treated as employees of KMERC, and the deployment
of such human resources post the completion or termination of the approved
works(s) will not be the concern/ responsibility of KMERC.

12. The Utilization Certificate (UC) shall be furnished by the concerned

Administrative Department/ Implementing Government Agency as per the
format given in Annexure-I. Before recording the certificate, the certifying
Officer shall take all necessary steps to satisfy himself that the conditions on
which the funds were sanctioned have been fulfilled. The submission of UC
shall be accompanied by a Statement of Expenditure in Annexure-II.

13. Before entrustment of execution of the approved work(s), the related

measurable outcome(s) should be communicated to the Project Executing
Agency, against which the said work(s) shall be evaluated.

14. The works shall be carried out as per the standard specification of items in
the sanctioned estimate. Mandatory quality check(s) shall be conducted by
designated qualified staff at different levels, as per the approved norms of
the concerned Administrative Department/ Implementing Government
Agency. Inspection & Quality control register shall invariably be maintained
for each of the project and the quantity of works shall also be duly checked
and verified.

15. Display board must necessarily be put up on the project-site, giving brief
details of project, cost and its duration.

16. Consideration of any deviation in the approved works shall be at the

discretion of the concerned Administrative Department/ Implementing
Government Agency, provided, all such deviations are within the project
cost and the corresponding works are carried out at the originally approved
location. However, prior approval from KMERC shall necessarily be taken
for any change in the cost, scope, or location.

17. The concerned Administrative Department/ Implementing Government

Agency shall ensure the post-project sustainability in terms of the Operations
and Maintenance (O&M) aspects of the project works.

81
18. Administrative costs including amount required for pre-project activities,
Supervision, Monitoring, Evaluation, and other contingencies shall be
limited to 1% of the project cost.

19. The concerned Administrative Department/ Implementing Government

Agency shall be solely responsible for ensuring compliance to all related
obligations/legal requirements including but not limited to
Environmental/Forest Clearances, queries under RTI, Social Audits or any
stakeholder consultations, as may be required for implementation of works
approved by KMERC.

20. The activities to be taken up within the forest areas shall necessarily conform
to the Approved Working Plans of the Karnataka Forest Department.

21. The progress report of the project shall be periodically (monthly/

quarterly/annually/project-end) uploaded on the KMERC portal & submitted
to KMERC, along with photos with geo-coordinates and small-sized videos
at every stage of project-implementation. On completion of the approved
project, a consolidated report of the work done, and assets created (if any)
shall be submitted to KMERC.

22. The concerned Administrative Department/ Implementing Government

Agency is also required to furnish to KMERC, a Utilization Certificate (UC)
as in Annexure-I along with a Statement of Expenditure as in Annexure-II,
both duly signed/counter-signed by the Head of the Department / Secretary
of the Administrative Department (as the case may be) at the end of each
financial year, as well as a consolidated statement of expenditure at the end
of completion of the project.

23. KMERC will have the right to call for any document(s)/ information with
respect to the work(s) approved under CEPMIZ from the concerned
Administrative Department/ Implementing Government Agency for the
purpose of monitoring/evaluation/record-keeping, and the latter shall duly
supply the required document(s)/ information.

24. All the public assets created under CEPMIZ will be the property of the State
Government of Karnataka. Such assets shall not be disposed-off,
encumbered or utilized for purposes other than as approved under CEPMIZ
by KMERC.

25. KMERC reserves the right to terminate any approved project work at any
stage and also to recover the amounts already paid, if it is convinced that the
fund under CEPMIZ is not being optimally utilized or satisfactory progress
is not being made in the project implementation.

82
26. The books of Accounts of the Implementing Government Agency shall be
scrutinized periodically by the Internal Auditor of KMERC, as well as
annually by External Third-Party Auditor (CA Audit).

27. Accounts of the concerned Department / Government Agency shall be

audited by the Office of the Comptroller and Auditor General of India (CAG)
at its discretion, and CAG will have the right to demand the production of
book of accounts, vouchers, and other documents in this regard.

28. In addition to the above conditions, any other condition(s) may be added by
the concerned Department / Government Agency as required.

83
12.9 Annexure 9 – Constitution of Project Appraisal Committee at KMERC

84
85
86
12.10 Annexure 10 – CEPMIZ DPR Preparation Guidelines issued by the
Forest Department

87
88
89
12.11 Annexure 11 - Order regarding Delegation of Administrative Approval

90
91
92
93
94
95
96
97