GOVERNMENT: MINING POLICY
Extracting India! Not for sale
Mining sector reform on the anvil!
Remember your class 7th Geography text books & all that effort to learn by rote about Zinc, Copper & Bauxite deposits in various parts of the country. As kids, we often complained & questioned the practicality of learning the boring details about those metals. Little did we realise then, that it is the abundance of these metals which make a country of teeming poverty, look rich (India produces 89 minerals, of which, 4 are fuel minerals, 11 metallic, 52 non-mettalic & 22 minor minerals).
To help India realise its full mineral exploitation potential, Union Government's Group of Ministers has prepared a Draft National Mineral Policy 2007, which is to be placed before Union Cabinet & later in Parliament. The policy envisages "attractive domestic & foreign direct investments to the tune of Rs.1,000 billion in the mineral sector & generating direct & indirect employment for about 500,000 skilled & unskilled labour force by 2011." If approved, it would allow 100% FDI in mining of all minerals, barring Coal, Lignite & atomic minerals. Furthermore, state-run agencies will be treated at par with private entities for the purpose of award of concessions. There will be no mandatory joint venture with local or state-owned companies for mining. The Secretary General of Federation of Indian Mineral Industries, R. K. Sharma, told B&E, "On the whole, it is a good step forward, but the auction of mineral deposists & provision of captive mines needs to be opposed." He further added, "Tatas are sitting over 3,000 million tonnes of iron ore deposists & produces only about 5 million tonnes of steel; while SAIL, which has control over 5,000 million tonnes of iron ore, produces over 13.33 million tonnes of steel."
Development needs to be promoted, but selling the assets of the nation at run-away price would be abominable & a breach of people's trust in the state.
India's resources in million tonnes
Minerals Resources Coal (including Lignite) 247,847
Iron ore 25,000
Bauxite 1,400
Manganese ore 160
Chromite 57
B&E edit bureau: Rajeev Kumar Singh
9.8.2007



