Seeks reservation of resources for PSUs and SMEs in mining lease areas
The Orissa government has demanded the introduction of a system of competitive bidding in notified mineral bearing areas of the country for allocation of bulk minerals like iron ore, chrome ore and bauxite.
The state government has called for the inclusion of this competitive bidding system in the new Mines and Minerals (Development and Regulation) Bill, 2010 which is being finalized by the Empowered Group of Ministers (EGoM) and is likely to be tabled in the winter session of the Parliament.
This demand was made by the state Chief Minister Naveen Patnaik during his interaction with Union finance minister Pranab Mukherjee who is heading the EGoM.
"We have demanded that bulk mineral resources like iron ore, bauxite and chrome ore need to be leased out on the basis of a competitive bidding system which is in conformity with international practices. In the petroleum sector, allocation is done through competitive global bidding and the Government of India is thinking of allocating coal blocks on the basis of competitive bidding. The same practice must be extended to precious mineral ores like iron ore, bauxite and chrome ore”, a highly placed official source told Business Standard.
This apart, the state government has suggested that the Royalty Commission should be empowered to fix royalty rates for different minerals instead of making mere recommendations to the Government of India.
While welcoming the proposal in the MMDR Bill-2010 which would make it mandatory for the miners to share 26 per cent of their profits with the local affected people, the state government has suggested that a Local Community Development Fund can be constituted for this purpose.
In addition to this, the Orissa government has sought reservation of resources for public sector undertakings and SMEs (Small and Medium Enterprises) in the mining lease areas. The state government also pleaded for inclusion of the value addition clause in the MMDR Bill so that mineral bearing areas are benefited to the optimal extent through value addition of minerals within their respective states.
On the setting up of the National Mineral Regulatory Authority, the source said, “We are open to establishment of a regulatory body, but we have requested the EGOM that the role of the regulator should be spelt out clearly. While the regulator can adjudicate cases pertaining to mineral concessions and recommendations of prospecting license, it should not be allowed to override on the powers of the state governments.”
It has been decided to set up an independent regulator called National Mining Regulatory Authority (NMRA) through an ordinance under the existing MMDR Act.
This ordinance is likely to be issued by the end of this month.
The independent regulator will have the powers to investigate and prosecute miners involved in illegal mining.
The regulator is being set up in the wake of alleged increase in illegal mining activities in different states including Orissa.
Earlier, the state government urged the Government of India to put in place a monitoring mechanism to ensure the effective implementation of the changes proposed in the MMDR Act, 1957.
The state had argued that the monitoring mechanism would ensure that the measures are implemented effectively and the benefits of mining activities percolate to the affected people.
