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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