Illegal Mining
Illegal Mining is one of the most rampant problems plaguing India, causing an gargantuan loss to the government. Illegal Mining in India is widespread in the states of Goa and Karnataka, approximately costing the government a loss of Rs 36,000 crore. The loss it causes to the government, and the damage it causes to environment, makes it a issue that requires immediate redressal
There is enormous and large scale multi-state illegal mining of iron ore and manganese ore running into thousands of crores every year, having several pernicious evil effects on the national economy, good governance, public functionaries, bureaucracy, public order, law and order. It has encouraged huge corruption at all different levels in public life, mafia in society and money power. It is not only national loot, but also has deleterious effects on the national economy and society. This has to be stopped immediately and effectively.
The main cause & incentive for this illegal mining of iron ore and manganese ore is the huge profit in the export market (mainly China). There’s been a substantial increase in demand from China, accounting for 86 % of iron ore exported from India. A tonne of iron ore, which fetches $136 there, is bought for less than a dollar from the government. Other lucrative minerals include manganese, bauxite and cadmium. Recently, news regarding the illegal auction of coal blocks and the illegal mining of leased mines have been doing the rounds.
The guidelines under the Central and the state enactments, call for a sketch of the mining area when a mining lease is applied for. But it has been observed that the actual mining areas are not related to the sketch that is provided with the appliation, and also the there are no officials crosschecking them. The mining area is actually much bigger than the area as provided in the sketch. According to the mining rules, a maximum mining depth of six meters is allowed to prevent environmental damage, but miners flout this rule to over-extract minerals.
There is a huge difference bet in the market price of the ore and the royalty specified by the government as well as faulty measurement mechanisms of amount of ore extracted. It was found that 35 lakh (3.5 Million) tonnes of ore were illegally exported without paying a rupee of royalty to the exchequer, resulting in a loss of about Rs 16085 crores.With ore prices of USD 100-120 per ton, 3.5 Million tonnes adds up to about 350-4000 Million USD.
There exists a complicity between the politicians and local officials. A fixed bribe is paid for each illegally mined truck leaving a mine. Once the mineral is out of the mining area, its export is extremely easy because ports are only concerned with payment of duty, not the mineral’s source. Illegal mining of minor minerals, for which permission is given by state governments, is higher than it is for the major minerals. It has also claimed lives of people who tried to expose the nexus between the ruling class and the mafia.
There are also other adverse environmental effects of mining. For example, certain species of animals, like the sloth bear, that in the Bellary region have disappeared. Medicinal plants from the area do not grow anymore. The entire system of rain has changed in the district of Bellary. It is reported that the entire area surrounding the mining area is denuded of greenery and has no agricultural activity.
The first and immediate step recommended is total ban on exports of iron ore and manganese ore. This can be reviewed, relaxed and liberalized, once effective enforcement agency is in place to see that no illegal mining of these items takes place and also after reasonable estimate of reserves available and the demand of industries in this country for production of steel and steel products.
The government should disallow mining without environment clearance in any mining sites smaller than five hectares. The royalties to the government should be linked to the market price of minerals.
References
http://www.sacw.net/article2624.html
http://en.wikipedia.org/wiki/Mining_scam_in_India
There is enormous and large scale multi-state illegal mining of iron ore and manganese ore running into thousands of crores every year, having several pernicious evil effects on the national economy, good governance, public functionaries, bureaucracy, public order, law and order. It has encouraged huge corruption at all different levels in public life, mafia in society and money power. It is not only national loot, but also has deleterious effects on the national economy and society. This has to be stopped immediately and effectively.
The main cause & incentive for this illegal mining of iron ore and manganese ore is the huge profit in the export market (mainly China). There’s been a substantial increase in demand from China, accounting for 86 % of iron ore exported from India. A tonne of iron ore, which fetches $136 there, is bought for less than a dollar from the government. Other lucrative minerals include manganese, bauxite and cadmium. Recently, news regarding the illegal auction of coal blocks and the illegal mining of leased mines have been doing the rounds.
The guidelines under the Central and the state enactments, call for a sketch of the mining area when a mining lease is applied for. But it has been observed that the actual mining areas are not related to the sketch that is provided with the appliation, and also the there are no officials crosschecking them. The mining area is actually much bigger than the area as provided in the sketch. According to the mining rules, a maximum mining depth of six meters is allowed to prevent environmental damage, but miners flout this rule to over-extract minerals.
There is a huge difference bet in the market price of the ore and the royalty specified by the government as well as faulty measurement mechanisms of amount of ore extracted. It was found that 35 lakh (3.5 Million) tonnes of ore were illegally exported without paying a rupee of royalty to the exchequer, resulting in a loss of about Rs 16085 crores.With ore prices of USD 100-120 per ton, 3.5 Million tonnes adds up to about 350-4000 Million USD.
There exists a complicity between the politicians and local officials. A fixed bribe is paid for each illegally mined truck leaving a mine. Once the mineral is out of the mining area, its export is extremely easy because ports are only concerned with payment of duty, not the mineral’s source. Illegal mining of minor minerals, for which permission is given by state governments, is higher than it is for the major minerals. It has also claimed lives of people who tried to expose the nexus between the ruling class and the mafia.
There are also other adverse environmental effects of mining. For example, certain species of animals, like the sloth bear, that in the Bellary region have disappeared. Medicinal plants from the area do not grow anymore. The entire system of rain has changed in the district of Bellary. It is reported that the entire area surrounding the mining area is denuded of greenery and has no agricultural activity.
The first and immediate step recommended is total ban on exports of iron ore and manganese ore. This can be reviewed, relaxed and liberalized, once effective enforcement agency is in place to see that no illegal mining of these items takes place and also after reasonable estimate of reserves available and the demand of industries in this country for production of steel and steel products.
The government should disallow mining without environment clearance in any mining sites smaller than five hectares. The royalties to the government should be linked to the market price of minerals.
References
http://www.sacw.net/article2624.html
http://en.wikipedia.org/wiki/Mining_scam_in_India
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