The Orissa government which faces the allegation of large-scale irregularities in mining operations, has sparked off yet another controversy by bringing out an “ambiguous” resolution to regulate the sector.
The resolution is viewed by mining experts as a “hurried” move to give an impression to the visiting Shah Commission that it is serious to check illegal mining.
The experts also apprehend that the new rule would stunt the state’s economic growth to a great extent for its “discriminatory” character.
The resolution gives the state-owned Orissa Mining Corporation (OMC) first right over areas containing major minerals such as iron ore, bauxite and chromite. No mining leases would be renewed except for captive use.
“Captive mining and the principle of equitable distribution, among others, shall be considered as guiding factors for such renewal, except in case of the lease held by a company or corporation owned or controlled by the union or state government,” the resolution says.
The state government has executed more than 50 memoranda of understanding (MoUs) for establishment of steel plants and alumina refineries.
Though most of these projects have commenced productions, they face serious shortage of raw material.
All Orissa Steel Federation (AOSF) president P.L. Kandoi described the resolution as the “death knell” for steel and iron industry.
“There is no availability of raw-material for the steel units and all units are starving without the raw materials like Iron Ore. Whatever little quantity is offered by the mine owners is so costly that it is just impossible to buy and run the units,” Mr Kandoi told this newspaper.
The resolution discriminates between MoU and non-MoU units. MoU units mean such units who had entered in to a MoU with the state government while the non-MoU units have production capacity of less than 0.25 million tonnes per annum.
“Why should non-MoU units suffer when they have also undergone the entire process of all sanctions and approvals,” Mr Kandoi quipped.