December 03, 2008

Mineral rich states unhappy with New Mining Policy

Mr Naveen Patnaik chief minister of Orissa said that "Unless, a copy of the amendment bill to the MMRD Act 1957 is circulated to mineral bearing states, no meaningful discussion can take place."

Mr Patnaik in yet another letter to Prime minister Dr Manmohan Singh said that "The ongoing initiative of the ministry of mines to hold talks with officers of mineral based states on the proposed amendment is mere formality as details of the amendments are not available with the states."

Mr Patnaik requested the Prime Minister to issue necessary directions to the ministry of mines to send a copy of the proposed amendment bill to state governments so that they can be deliberated upon at the highest level within the states first. He said since the mineral issues have a large impact on development of the concerned states, it is only appropriate that state governments are fully apprised of the proposed changes before they are introduced in parliament.

He recalled that on December 19th 2007 chief ministers of Chhattisgarh, Jharkhand, MP, Rajasthan and Orissa had met the Prime Minister and discussed the draft mineral policy. Subsequently the chief ministers had submitted a joint memorandum in March 2008 after the National Mineral Policy was tabled in the Rajya Sabha.

It may be noted that the mineral rich states have jointly opposed the proposed national mineral policy and the amendments to the act. They have taken the stand that the amendment will result in monopoly of big mining companies, dilution of the value addition within the state principle and minimization of state role as far as grant of mining lease etc is concerned.