Sunday, October 7, 2012

Sale of land owned by govt.

India has a long history of mining dating as far back as 6000 years or so.  But the impetus to mineral development in the country gained momentum only after Independence in 1947, particularly after the launching of the Second Five Year Plan in 1956, which aimed at an ambitious programme of rapid industrial development. The Industrial Policy Resolution of 1956 assigned major role for the public sector. As a result, development of mineral resources was primarily vested with the public sector.  At present the mining industry in India  is one of the major economic activities which contribute considerably to the economy of India. The contribution of mining industry GDP varies between 2.2% and 2.5%. But going by the GDP of the total industrial sector, the mining sector contributes around 10% to 11% production. India's metal and mining industry was estimated to be $106.4bn in 2010. Indian mining industry provides job opportunities to around 7 million persons. India's minerals range from both metallic and non-metallic types. The former comprises ferrous and non-ferrous minerals, while the latter constitutes mineral fuels, precious stones, among others. The country produces and works with roughly 100 minerals, which are an important source for earning foreign exchange as well as satisfying domestic needs. India also exports iron ore, titanium, manganese, bauxite, granite, etc. However, 80 percent of mining in India is in coal and the balance 20% is in various metals and other raw materials such as gold, copper, iron, lead, bauxite, zinc, and uranium. India is the largest producer of sheet mica, the third largest producer of iron ore and the fifth largest producer of bauxite in the world. Limestone, magnesite, dolomite, barites, gypsum, apatite and phosphorite, steatite and fluorite account for 90 % of non-metallic minerals. However India is not endowed with all the requisite mineral resources.  In addition, several minor minerals such granite, building stones, ordinary clay and sand, gravels, boulders, shingle, lime shell, kankar, brick-earth, road metal, ret-mitti, marbles and some non precious stones, etc. are excavated in huge quantities, often causing damage to  environment  and livelihood of the people.

Before the launching of the new economic policy in 1991, the production of  major minerals such lignite, petroleum and natural gas, copper, lead-zinc ores, gold, silver, diamond, tungsten concentrates, pyrites, rock phosphate, etc was contributed from the mines owned by the public sector. The mining sector was thrown open to the private sector with the launching of the new economic policy in 1991.Moreover, the mining sector was opened to the private sector and, in1993, it was opened to foreign direct investment (FDI). After the opening of the mining sector to the private sector and FDI, mining in India is infamous illegal mining with political patronage and connivance of corrupt officials. Illegal mining has led to colossal damage to the ecology, environment, agriculture, ground water, natural streams, ponds, rivers, biodiversity, etc.
Recently, the mining industry has been hit by several high profile mining scandals such as the coalgate scam, Bellary iron ore mining scam, Goa iron ore mining scandal, Madurai granite quarrying scam and a host of other scams and scandals leading to looting of hundreds of thousands of crores of rupees by industrialists, politicians and bureaucrats, besides huge loss to the exchequer. When the country requires more than the known deposits of iron ore for domestic purpose, export of large quantities of iron ore to China has been going on for many years, much of that illegally, from Goa and Bellary. In Bellary, in Karnataka, large scale illegal mining and export to China has been going on for quite some time with political patronage and official connivance. A report published by the Lok Ayukta uncovered major violations and large scale corruption in mining in Bellary, including in the allowed geography, encroachment of forest land, massive underpayment of state mining royalties relative to the market price of iron ore and systematic starvation of government mining entities. According to reports more than 5 lakh truck load of iron ore has been transported illegally amounting to thousands of crores of rupees with the active collusion of officials and politicians in permitting illegal mining. The same is the situation in other parts of the country. Therefore, both the central governments should have woken up much earlier and taken steps to stop this pernicious practice of illegal and unscientific mining so as to save the country from environmental and ecological disaster, besides preventing the looting of public money by unscrupulous elements with the support of the corrupt politicians and bureaucrats.

The Shah Commission report on illegal mining scam in Goa is an eye opener. The Commission has reported that a mafia-like nexus among politicians, bureaucrats and the mining lobby was responsible for the scam.  According to the estimate the Commission, the Goa mining scam   involve looting of a whooping sum of Rs. 35,000 crore through illegal mining with political patronage and connivance of corrupt officials. More than the loss of Rs. 35,000 crore, the colossal damage has been caused to the ecology, environment, agriculture, ground water, natural streams, ponds, rivers, biodiversity, etc. The entire area has been rendered environmentally unsustainable and unusable for cultivation. It is reported that sometimes the actual mining areas are not related to the sketch given with the applications without officials crosschecking them. Further mining applicants used to falsely claim a prohibited forest area as a revenue area. Finally, the actual area of the mine used to be is much bigger than the claimed area. The Indian Bureau of Mines rules which control the type of mining, allow a maximum mining depth six meters to prevent environmental degradation. But miners have flouted this rule to over-extract iron-ore. For example, if they are allowed to take 100 metric tons, mines used to take 1,000 metric tonnes. According to Jitendra Deshprabhu, a Congress leader in Goa, mining companies operating in Goa for decades have been exporting ore which also had gold component and that the yellow metal was one of the reason why China was hungry for ore from the state.  He states: “It is very pertinent that the Government of India will have to evaluate mineral in dumps not only to ascertain content but also gold, platinum and other important metals in this material. Goa's ore has traces of gold and platinum." It is incomprehensible to note that for more than a decade there has been unrestricted, unchecked and unregulated export of iron ore to China, which made the exporters rich and richer and the politicians and bureaucrats wealthier and wealthier through large scale corruption. It is painful to note from the Commission’s report that the Ministers of Mines as well as the Chief Ministers were well aware about non-compliance of conditions and other illegalities/irregularities. In a way, total damage has been caused to environmental sustainability and ecosystem due to indiscriminate mining in Goa. Despite widespread reports and public outcry, the central government did not take any concerted action to stop illegal mining in Goa and looting of thousands of crores o rupees by industrialists, politicians and bureaucrats.  Therefore, the Supreme Court of India has done great service to the nation by stopping illegal and unscientific mining in Goa.
Dr.C.Murukadas, The Times of India, Oct.7, 2012

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