Minesweeper

In the surprisingly high growth numbers for Indias economy released recently,the excellent performance of the mining sector,historically subject to underinvestment and low efficiency,stood out. But Indias massive,unexploited natural resources have become,over the past year,an unprecedented political hot potato. This has had two symptoms. The first is that a discourse,mistaken and malicious,took hold among sections of people who refer to themselves as civil society: that plans for coordinated state action against Naxalites were because of,and timed according to the demands of,commercial interests interested in the natural resources lying below Naxal-hit territory. The second is that,in several states,the control of mineral wealth has begun to seriously disrupt state politics,and distort the conversation about policy. Witness Karnataka,where governance was paralysed for weeks thanks to the open rebellion against the chief minister by the Reddy brothers,who control mining in Bellary district and have used the fortunes that that has gained them to become powers in the state BJP. The Reddy brothers also figure in neighbouring Andhra Pradesh,where Chandrababu Naidu has attempted to form a coalition against their interests,which he identifies with that of the state Congress,so long under the sway of Y.S.R. Reddy. The Central government has just suspended the clearances of six Reddy mines in AP. And then theres Madhu Koda and the missing 4000 crore rupees .

The problem? Mining is one of the most unreformed sectors in our economy,and also one of the most opaque. Illegal mining,the expansion of claims beyond what is legally yours,might be endemic or it might not. The lack of transparency not only allows,possibly,the amassing of vast fortunes at the exchequers expense such as Koda is accused of building up but it also permits the conception and transmission of a hundred conspiracy theories,a thousand whispered allegations,each of which adds to the disruption of state politics,and to shrill civil society denunciations of action against Naxalites.

We cant rely on governments in states with already contentious mining industries to develop a political response to the growing concern about illegalities in mining. The impetus must come from the Centre; the constitution grants it regulatory authority in the sector if it sees a need in the national interest. An overhaul of the antiquated legislation that governs the sector is planned. That must not be delayed. But most importantly,the Centre must be visibly willing to push states,and to set up independent investigation and oversight. Mining will grow. Our political response must grow along with it.