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LATEST NEWS UPDATES | Growth in pits, PM targets mining in opposition-ruled states -Rajeev Deshpande

Growth in pits, PM targets mining in opposition-ruled states -Rajeev Deshpande

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published Published on Mar 3, 2013   modified Modified on Mar 3, 2013
-The Times of India

Under pressure to energize the economy ahead of the 2014 election, the Manmohan Singh government is reaching across political divides to rescue mining projects in opposition-ruled states of Goa, Odisha and Karnataka.

With third quarter growth sinking to 4.5% and the economic survey pointing to a mining and quarrying slowdown as a reason for poor industrial growth, the Centre has decided to ask the Supreme Court to relax its order banning all mining in Goa.

The bid to restart "legitimate mining" seeks to partially undo the SC order — issued after the Shah commission reported widespread illegal mining — is intended to reverse a worrying 10% decline in mining output in 2012-13 and boost waning investor confidence.

The Shah commission is also currently examining reports of illegal mining in Odisha and a panicky Naveen Patnaik government's decision to impose stiff penalties running into thousands of crore to preempt a critical report has also prompted a Central intervention.

Interestingly, Congress has attacked opposition governments over illegal mining. Statistics and programme implementation minister Srikant Jena alleged a massive scam in Odisha. In Goa beneficiaries were seen to be Congress leaders, but BJP has borne the brunt of the ban after coming to power last year.

The Odisha disputes have led mining firms, including some big names in the sector, to approach the Union mines ministry's quasi-judicial mechanism for relief. PMO is urging penalties be settled under provisions of the Mines and Minerals (Development and Regulation) Act so that mining production is not hit.

In the Goa case, the Centre will argue that it holds no brief for illegal mining but relief be granted to legitimate mining leases. Goa chief minister Manohar Parrikar has pointed to a human tragedy unfolding in the state with thousands of low wage earners losing their jobs.

The Shah commission had said illegal mining led to a loss of Rs 35,000 crore. The Centre is not disputing illegalities but wants a review of legitimate leases while promising safeguards to monitor mining.

The Centre has also taken steps to bring mining in Karnataka back on track as it works with the state government in monitoring lease areas and ensuring rehabilitation or compensatory targets are honoured.

The Times of India, 3 March, 2013, http://timesofindia.indiatimes.com/india/Growth-in-pits-PM-targets-mining-in-opposition-ruled-states/articleshow/18771100.cms


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