The state Government of Karnataka has approved a proposal by the Uranium Corporation of India (UCIL) to set up a uranium mining and processing unit at Yadgir district in Karnataka.
The unit will be established with an investment of Rs5.5bn ($122m).
According to initial estimates, the firm is planning to extract 500t of iron ore a day and recover 1kg/t of uranium, reports Business Standard.
Mines and Geology director HR Srinivasa said UCIL should complete the environment impact assessment report and seek approval from the Ministry of Environment and Forests, before commencing work to mine.
The firm has also found rich deposits of uranium in Dharwad and Belgaum districts of Karnataka, India.