The Hindu Business Line : `East can attract $125 b investment in minerals'

Mr Buddhadeb Bhattacharjee (second from left), West Bengal Chief Minister, flanked by Mr Sunil Kant Munjal (left), President, CII, Mr Rajat Gupta, Principal, McKinsey and Co, and Mr B. Muthuraman, Chairman, CII (ER), at a meet in Kolkata on Tuesday. — Parth Sanyal

Kolkata , April 26

A report on the country's potential in the minerals and metals sector, jointly prepared by the Confederation of Indian Industry and Mckinsey & Company has highlighted that this sector alone in the eastern region has the potential to attract investments worth $ 75-125 billion over the next 10-12 years, provided concerted efforts are made by the State Governments in association with industry players.

The report was released here on Tuesday at an international conclave on minerals and metals manufacturing by the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee.

The conclave was arranged by the CII, coinciding with its annual regional meeting. Experts from 24 countries, along with major domestic players in the mineral and metal industry, attended the conclave.

Mr Rajat Gupta, partner, McKinsey & Co, said India enjoys a strong position in the mineral map of the world and should learn from other countries to harness its natural wealth for higher economic performance and employment generation.

Mr Gupta said current market and economic forces made this an opportune time for the sector to step up its efforts, which has the potential to generate employment for 7,00,000 people by 2015.

Domestic demand is likely to witness a significant growth in current economic trends, making the country one of the five largest global markets for several metals and minerals. This apart, the Chinese economy's growth has accelerated global demand for basic materials. India, being a low-cost producer, could position itself to play a significant role in servicing global demand, he said.

The report has recommended that the States in the eastern region, which control 75 per cent the country's mineral deposits, collaborate to benefit from each other's structural advantages. It is desirable to form an eastern State minerals council, comprising the four eastern States, to resolve inter-State issues faced by the industry and explore joint initiatives.

The council should meet every two months to examine the possibility of joint funding of infrastructure as well as joint development of mining areas. It should also jointly allocate downstream investments among member States so that the industry does not face artificial restrictions on locating its plans.

While endorsing the recommendation of forming a council, the Chief Minister asked the CII to take initiatives to convince mineral-bearing States in the eastern region to form such a council. The Union Government should encourage only exports of value-added items but not raw materials.

Mr Bhattacharjee said the Governments in the eastern region are each controlled by a different party. Therefore, he said, "We must rise above petty politics. Economic development should get priority in the national interest." He said the Left Front Government in the State wanted to stop illegal coal mining, which causes law and order problems for the administration in the coal bearing areas of the State. He urged the Centre to take appropriate measures to take over small and scattered small coal mines to curb illegal mining.

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