Saturday, September 11, 2010

Jairam Ramesh rejecting the Vedanta mining project owing to environmental violations by Vedanta and tribal rights protection is a bold move. All of us should hope this momentous decision by the minister will set a bench mark before clearance is given for such projects in the future.

In India what happens in the name of mining natural resources is unabashed looting of the nation’s wealth by politicians and industrial houses. A weak and corrupt regulatory environment aides these coterie in carrying out the nefarious activities of illegal mining, exports, tax evasion,environmetal damage etc.

The environment ministry has long been a rubber stamp headed by pliable ministers who had no interest in using their power to push the country towards sustainable development. It is a welcome relief to see Jairam take over a powerful corporation and its state backers on the principal of environment protection and tribal rights. It is a victory for the Dongriya Kondhs for they waged a war against the mining project for the past 4 years. (There are many horror stories on how the Orissa police harassed the tribal’s to push them out of their lands)

Take the case of Obulapuram mines in the Karnataka, AP region where huge irregularities in mining operations were noted by the Supreme Court nominated CEC. The Karnataka government had no guts to take on the Reddy brothers and hence under pressure took the easy route of banning iron ore exports from the state ports, I am sure the Reddy brothers are exporting the ore from AP and other nearby ports.

The exploration rights for the Bayyaram mines have been cancelled by the Union mining ministry owing to allegations of due process not being followed in allocation of the license (YSRs son-in-law managed to get the rights).

Overall the mining industry in the country is in a sort of a Wild West situation with little or control being exerted by the state in monitoring the industries activities (obviously both are in collusion).

This is one industry I would prefer the state to take full control and probably nationalize. Case in point the Supreme Court ruled that the government has the last word on pricing and utilization of national assets the same yard stick should be applied in the case of the mining industry. Mines are natural resources and national assets; the Government has the responsibility of formulating a policy that addresses all the aspects related to environment and ecological damage, people displacement, sustainability and rehabilitation.

1 comment:

  1. I agree. In fact, for all natural resources, strong controls are needed around discovery and distribution. This is inclusive of land usage and ownership, in general. I feel the ownership of land should be with Government at all times whether it is put to commercial or private use. This should help in controlling real estate prices and should also help in infrastructure planning & development. As always, implementing such control/concept would be a challenge.

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