OTN: A report on the Mining sector of Odisha
* Note: A detailed report on a conference deliberations on the Mining Policy.*
Odisha’s political parties ask Naveen Govt not to give mining lease to private firms
By Our Correspondent Bhubaneswar, July 31, 2011
The political parties and educated class of Odisha asked the BJD state government not to give mining lease to any individual or private company. They also decided to draft an alternative policy on the Mining Act.
Giving details on the deliberations of a seminar organised by Orissa Jana Samilani, a people’s forum, on the Mining Sector, president of the organization Rabi Das said that the convention had passed a resolution that no mining lease should be given to any individual or private company.
He said,“the convention has also decided to draft an alternative policy to the Mining Act. The committee will organise four meetings at four different places in the state. Later, the proposal would be sent both to the state government and the Centre for consideration.”
The participants in the convention demanded for a market-linked pricing of minerals is gaining grounds in Orissa with leaders cutting across political parties against mining leases for any private individual.
The speakers called for the withdrawal of captive mines system for private companies and provide minerals to value added manufacturing units only on some concession rates.
Taking the lead, union minister of state for statistics, programme implementation (Independent Charge), fertilizer and chemicals, Srikant Jena sought State control of mineral resources and formation of separate corporations to deal with chromite, iron and bauxite.
Jena said, “I am totally opposed to granting captive mines. Instead, let the industry be supplied ore through a separate linkage policy. Captive mining and mining lease given to individuals or mining first had inherent limitations and illegal mining is the offshoot of such short-sighted policy. Ore linkage rather than captive mining should be the paradigm for ensuring raw material security. This policy should also facilitate hedging in order to bring stability to ore prices”
The Congress leader regretted that only five per cent of the annual mineral wealth was coming to Odisha in the form of royalty while the rest 95% were enjoyed by the lessee — be a trader, an industrialist or a company, he said. “The annual royalty receipts in Orissa are meager as compared to the enormous mining industry in the state. The trend needs to be reversed,” he said.
Jena further argued that in a free market economy when we say that there is no scope for free lunch, why should can the corporate houses be subsidized with captive mines. “Minerals should be given to the industrial houses on market-linked prices, may be at a cutting down the cost by 10% or 15% than market price”. State control of mining resources would not only rectify above anomaly, but also prevent and protect environment by way of proper mining and planned industrialisation, he said adding that Jena said the mining scam has only opened the Pandora box in both Karnataka and Odisha.
He said,“There may be some theft of ore but that is negligible. What is alarming most is the facts that the legal mine owners are indulging in illegal extraction of minerals beyond the permissible limit of the leased areas. The Judiciary also has taken note of this. It is time that all issues be discussed threadbare and formulate pro-people mining policy.”
On land acquisition for Posco, the union minister made it clear that the state should wait for the forthcoming Land Acquisition Act that seeks to put in place a legal framework to not only protect the interests of owners and prospective buyers, but also those whose livelihoods depend on the acquired physical asset. Posco has been facing protests, some even turning violent, for the past six years over acquisition of farmland for its 12-million ton steel project. Jena underscored the need for a transparent set of rules that balances the need for industrialisation with the issue of livelihood.
Participating in the debate, former minister and senior Biju Janata Dal leader Damodar Rout warned that if there was no equilibrium in the development of agriculture and industry sectors, an awkward social situation was likely to develop, which was not good for the society in general. Rout said while he was not opposed to industrialisation, but at the same time we got to preserve the state’s natural resources and elephant corridors.
Former union minister Braja Kishore Tripathy said a transparent mining policy should be adopted and emphasis given on value addition of minerals. “The National Mineral Development Corporation’s earlier proposal to invest as well as the Orissa Mining Corporation being given the sole responsibility to raise minerals should be revived,” he said. Congress senior leader Narasingha Mishra said the state Congress had already passed a resolution that mining lease should be not given to any private individual or public-private company. “No private company should be given the captive mines. They should be given the mines only on some concession rates,” he said.
CPI(M) leader Janardan Pati and CPI leader Ramakrushna Panda advoated for the state’s control over minerals.
*Source: www.bizodisha.com*