Document View - States oppose New Mineral Policy (Business Line)

NEWS: States oppose new mineral policy, seek joint task force

Anonymous. Businessline. Chennai: Mar 30, 2008.

Abstract (Summary)

Briefing reporters after a meeting, Mr [Naveen Patnaik] said, "We have been demanding that exports should be phased out and the States should receive the royalty on an ad-valorem basis." "Now we get around Rs 18-20 per tonne of iron ore, which is sold in the market for around Rs 5,000 a tonne," he said

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from BUSINESS LINE, March 30, 2008 New Delhi, March 29 - Five mineral-producing States have told the Centre that the National Mineral Policy 2008 intrudes into their rights over the minerals produced in their respective States and have demanded the setting up of a joint task force with representatives from the States and Centre to look into the issue

The policy was tabled in the Rajya Sabha last week

In a joint memorandum submitted to the Prime Minister, Dr Manmohan Singh, the Chief Ministers of Chhattisgarh, Madhya Pradesh, Orissa, Rajasthan and Jharkhand have said: "We strongly suggest that a task force consisting of officials of Union and State Governments be immediately constituted in order to go into these matters thoroughly before any amendment to the Mines and Minerals (Development and Regulation) Act and the relevant rules are introduced in the Parliament." The new policy, according to the States, is tilted in favour of multinational companies and focuses more on foreign direct investment rather than protecting national interest

The States are also opposed to the seamless transition from reconnaissance to prospecting to mining lease for bulk minerals as proposed in the policy

"The State's right to select the best applicants should not be compromised in the name of seamless transition or security of tenure and should not be usurped by the Central Government under any pretext," the memorandum said

Panel The Chief Ministers of Orissa - Mr Naveen Patnaik, Madhya Pradesh - Mr Shivraj Singh Chouhan, Chhattisgarh - Dr Raman Singh and the Minister of Water Resources of Jharkhand - Mr Kamlesh Kumar Singh (representing Chief Minister, Mr Madhu Khoda) met here on Saturday to discuss the issue

The Rajasthan Chief Minister, Ms Vasundhara Raje, though not present in the meeting, is also a signatory to the memorandum

Briefing reporters after a meeting, Mr Patnaik said, "We have been demanding that exports should be phased out and the States should receive the royalty on an ad-valorem basis." "Now we get around Rs 18-20 per tonne of iron ore, which is sold in the market for around Rs 5,000 a tonne," he said

Dr Singh said, "for bulk minerals there is no need for FDI and it should be saved for the future benefits of the States and the country as a whole." Mr Chouhan said the multinational companies are targeting the country's mineral resources for trading

"We are opposed to trading and value addition must be done in the States," he said

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