States oppose mining blueprint

Chhattisgarh, Orissa and Karnataka, three states with major mineral deposits, today opposed the recommendations of the Hooda Committee that favour iron ore exports and empowering the Centre to deal with mining applications in case of delay by states.

At the 28th meeting of the Mineral Advisory Council held in New Delhi under the chairmanship of Minister of Mines Sis Ram Ola, Chhattisgarh Chief Minister Raman Singh demanded ad-valorem royalty at 20 per cent of the sale price of minerals, and backed up this demand with a warning that finalisation of the new National Mineral Policy and effecting changes in laws governing the mines and minerals sector would be useless without a consensus between the Centre and the mineral-producing states.

Singh criticised the recommendations of the Hoda Committee constituted by the Planning Commission, saying issues like handling of delays in disposal of mineral concession applications had not been settled.

The chief minister of Orissa, Naveen Patnaik, too opposed the committee's recommendations, saying its suggestions on grant of reconnaissance permit, prospecting licence, and mining lease would help big mining companies and hamper the establishment of value-addition industries in mineral-rich states like Orissa.

Singh said continuance of reservation provisions in the law for state PSUs was necessary for augmentation of mineral revenues going to states and to ensure supply of raw materials to the mineral-based local SME sector, a view echoed by Patnaik.

Patnaik said export of iron ore having over 60 per cent Fe content should be restricted, and gradually, export of the ore banned.

Singh and Patnaik said the policy and laws should ensure SMEs were not denied mineral concessions for captive use or prevented from taking up mining.

They demanded that a joint working committee comprising members from the mineral-producing states, ministries of steel and mines, Geological Survey of India, and Indian Bureau of Mines should be constituted to study the recommendations of the Hoda Committee before bringing in amendments to MM (D&R) Act 1957, and MC Rules 1960.

Singh alleged the committee had failed to analyse the impact of a mineral policy on the living conditions and income of inhabitants of mineral-bearing scheduled areas.

He pointed out that the Supreme Court, in its Samatha judgement, had directed that up to 20 per cent of the net profit from mining should be set apart for the development of the scheduled area.

Karnataka Chief Minister HD Kumaraswamy also opposed the proposed policy, saying, "The government of India has claimed that we have reserves sufficient to last a century and therefore no restrictions need to be placed on export of these resources. Clearly this is not an argument that can be advanced to maintain the status quo regarding the mining policy."