Ranchi, May 26: The cabinet today finally approved mining lease to the Jadugora-based Uranium Corporation of India Limited (UCIL).

With this, the controversy over the alleged step-motherly treatment being meted out to the country?s premier agency involved in developing nuclear power has come to an end.

UCIL had been running from pillar to post since 1982 to secure mining lease for uranium. But neither the erstwhile Bihar government nor the Jharkhand regime approved the project, arguing that it could prove to be hazardous for common people living in Jadugora. Sources said repeated interventions by the Centre too proved futile.

A few weeks ago, the Arjun Munda government decided to thoroughly examine proposal again. Today the cabinet decided to allow UCIL to carry out mining operations over 118.32 acres of land in Jadugora.

To facilitate smooth allotment of land to new industries, the cabinet has also agreed to set up a land development bank with an initial investment of Rs 30 crore. The officials have been directed to prepare a detailed blueprint, so that additional funds could be provided accordingly.

The industry department?s budgetary size under the plan head too has been raised from Rs 90 crore to Rs 133 crore during the current fiscal. Special emphasis has been given to sericulture. The chief minister has directed the industry department to evolve a new policy on sericulture.

While approving Rs 141.35 crore to the urban development department under the plan head for the current fiscal, the cabinet decided to build 6,500 houses under the Valmiki Ambedkar Awas Yojana.

Since land acquisition has become a difficult task in the urban areas, multi-storied apartments will be built under this scheme. A sum of Rs 26 crore will be spent on this head.

The cabinet has also decided to spend Rs 29 crore on improving drinking water supply to urban areas, Rs 18 crore has been granted for urban roads, Rs 10 crore has been earmarked for improving the drainage system and Rs 17.8 crore will be spent on development of slums.

That apart, another Rs 350 crore will be spent on improving the drainage and sewerage system in Ranchi. Though a budgetary provision of only Rs 4 crore has been made under this head, the balance amounts will be managed through loans.