Mineral rich states to lobby for export curbs

The chief ministers of the mineral-rich states - Jharkhand, Orissa, Chattisgarh, Rajasthan and Karnataka - are likely to meet the Prime Minister Manmohan Singh today with their demand for giving the state governments a better say in the proposed national mining policy.

The chief ministers, who have come to attend the meeting of the National developmental Council, would present a joint memorandum to the Prime Minister Manmohan Singh at his residence in the evening.

The memorandum, which sources said, was finalised here this morning, wants the proposed national policy to give a say to the states in clearing the mining projects and also a complete ban on the exports of the iron ore.

According to sources the memorandum seeks "value addition of iron ore within their respective boundaries and ban on its exports."

Union Home minister Shivraj Patil, who also is the chairman of the Group of Ministers on mines and the union Mines Minster Sis Ram Ola and his deputy T Subbarami Reddy are also likely to be present in the chief ministers' meeting with the PM.

These states have been complaining that the proposed policy snatches away the right of the state government in alloting mines on lease to the companies.

The new policy suggests setting up committees to expedite the process of clearing mining leases in case the proposals are stuck for want of approval from the state governments.

The five mineral rich states, however, want special provisions for public sector companies and seek to retain rights to give the mining leases to the companies that will do the value-addition or set up industries in that state itself.

As the government expects investments to the tune of Rs 1,00,000 cr to flow in into the mining in next ten years, the proposed National mining policy seeks to remove the bottlenecks towards this.

The policy, however, is yet to the cleared by the cabinet.