The Hindu Business Line : ‘Make local value addition the aim of mineral policy’

Snapshot
Opposing FDI in iron ore mining, the States also asked the Centre to give priority to PSUs over multinational firms in mining the ore for ensuring availability of the precious resource within these States.

Our Bureau

New Delhi, Dec. 19 The Chief Ministers of the five mineral rich states have urged the Prime Minister, Dr Manmohan Singh, to make the local value addition of the minerals the main objective of the National Mineral Policy (NMP).

They also said, the States should be adequately compensated for use of the minerals through an automatic ad-valorem based royalty structure and should not be left to the discretion of the Union Government. Moreover, the export levy should be entirely passed on to the States.

“We also demanded that at least 5 per cent of the annual profit from mining should be set apart for socio-economic development of the tribal population in the scheduled areas. Modalities should also be evolved for the participation by the displaced persons in the equity of the mining company limited to the value of land compensation,” the Chief Minister of Chhattisgarh, Mr Raman Singh, said after meeting the Prime Minister.

The memorandum also opposed the proposal to grant large area prospecting licences (LAPL), saying it made no economic sense and could lead to more complications.

Opposing FDI in iron ore mining, the States also asked the Centre to give priority to PSUs over multinational firms in mining the ore for ensuring availability of the precious resource within these States.

“We have also requested the Prime Minister to accord priority to State-run mining giants like National Mineral Development Corporation (NMDC) in mining ore from the mineral rich States as they are capable of doing so. Contrary to popular perception, mining is not a capital intensive industry and these PSUs have the expertise in mining ore,” Mr Singh said.

The chief ministers also demanded a Task Force consisting of both state and central representatives to look into the amendments to the draft National Mineral Policy, 2007.

On the other hand, an official from the Government of Orissa said that they demanded iron ore exports be phased out gradually and the export duty levied on these minerals be fully passed on to the resource bearing States.

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