The Chief Ministers of Orissa, Chhattisgarh, Madhya Pradesh and a Cabinet Minister of Jharkhand on Saturday morning met at Orissa Bhawan in New Delhi to discuss about the possible repercussion of the National Mineral Policy.They signed a joint memorandum on mineral issues and submitted it to the Prime Minister. The five mineral-based States demanded that a task force consisting of officials of Union Government and the State Governments be immediately constituted in order to go into the matters concerning the mineral owning States before any amendment to the MMDR Act and the relevant Rules is introduced in the Parliament.In the memorandum, they alleged that the National Mineral Policy (NMP), 2008, which was tabled a few days back in the Rajya Sabha has not considered many of the viewpoints of the mineral rich States, who have earlier submitted three joint memoranda in December 2006, August 2007 and December 2007.
The States reiterated their demand for value addition within the State to attract investments which will lead to employment and revenue generation as against standalone mining stated in the NMP, 2008.The States opposed the concept of seamless transition from reconnaissance to prospecting to mining lease for bulk minerals since it would deny the States the opportunity to promote mineral-based industry within their States.
The States felt that the over emphasis on attracting FDI in mining in the NMP, 2008 will result in a situation where a few multinational mining companies will acquire control over the vast mineral resources of the country that are essentially required for the domestic manufacturing industry.
The States reiterated that the royalty on various minerals should be ad valorem and the export duty on minerals should be passed on entirely to the respective State. Orissa has already lost hundreds of crores of revenue due to the delay in revision of royalty on minerals by the Central Government.
The States also urged the Centre to continue reservation for the State mining PSUs as recommended by the Hoda Committee. Phasing out export of minerals and allowing captive mining for industries located within the mineral based States are the other key demands made through the Joint Memorandum. "Minerals are finite resources, they should not be exported just for earning foreign exchange," they said. Later, Chief Minister Patnaik attended a meeting of NDA Chief Ministers called by LK Advani where he also raised the mineral issue.
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