Mining firms rush to State

The illegal mining scam has not deterred mining companies from making a beeline for Karnataka. Over 19,000 applications seeking permission to excavate ore in the State are pending with the government.

Data compiled by the Union Ministry of Mines shows that of the 42,535 pending applications seeking permission for mining in various mineral-rich states in the country, (as on April 19), more than 45 per cent (19,351) of them are pending in Karnataka alone — the highest in the country.

Karnataka is followed by Madhya Pradesh (4,587), Gujarat (4,924) and Jharkhand (4,309). A significant number of applications is also pending in Chhattisgarh, Goa and
Orissa.

Ever since the Supreme Court banned mining in Bellary, Chitradurga and Tumkur, the State government has been going slow on clearing mining applications. “The number of pending applications indicates mining firms still consider Karnataka the best bet for investment,” said an official of the ministry.

Even the Ministry of Mines is treading cautiously on granting mineral concessions, following the apex court warning that the current first-come-first-served system for granting leases may be misused “by unscrupulous people.”

The Mines Ministry, where some 120 mining applications are pending, has sought the Law Ministry’s opinion on how to treat the applications — whether to process them on the first-come-first-served basis, or introduce a different system.

The apex court, in its judgment on February 2, had observed that a duly publicised auction conducted fairly and impartially is perhaps the best method for granting mineral concessions. “...Methods like the first-come-first-served, when used for alienation of natural resources, are likely to be misused by unscrupulous people who are only interested in garnering maximum financial benefit and have no respect for Constitutional ethos and values”, the Supreme Court said.

Though there is no provision for granting mining leases through auctioning in the existing law, in thedraft Mines and Mineral (Development and Regulation) Bill, 2011, which is under the consideration of the Parliamentary Standing Committee on steel and mines, specific provisions have been inserted for introducing the auctioning mechanism.