SteelMin against states alone deciding mining leases

Steel minister Virbhadra Singh has written to his mines ministry counterpart,B K Handique,asking him to retain the procedure of seeking Centre’s prior approval for allocation of mining leases of “strategic minerals” — such as iron ore,chrome ore and manganese ore — to ensure their utilisation is “in the larger public interest.”

Arguing that his ministry was squarely responsible for growth and development of the “user industry”,the steel minister has gone on to suggest it would be better if his ministry was “involved in the process of granting concessions for strategic minerals”.

Pointing out that iron ore was the lifeline of the steel industry,Singh surprisingly suggested: “If (the) mines ministry is finding it difficult to regulate and manage the process of granting of prior approval of mineral concessions for major minerals,(the) steel ministry will be willing to accept taking over this function of grant of prior approval for mineral concessions for iron ore,chrome ore and manganese ore,if the procedure of prior approval is continued.”

Singh also wrote that by doing away with the procedure of prior approval “the Central government may be charged with abdicating its constitutional responsibilities,besides disturbing the sensitive and delicate balance of Centre-state relationship in regulation of mineral resources”. The minister opposed the clause of premature termination of mining leases for major minerals by state,saying here too the provision of seeking the Centre’s prior approval be ensured.

In his letter,Singh wrote that mineral resources are national assets and their allocation and utilisation be done treating the country as a “single economic space”. The minister also said there have been instances “of state governments being swayed by local parochial interests while allocating mineral concessions overlooking national interests.”

Draft MMDR Act sparks off turf war

• Currently,the mines ministry’s prior approval is required before states can hand out mining leases

• In the Draft MMDR Act,mines ministry seeks to allow states to independently decide lease allocation

• Steel minister writes to mines minister to retain procedure of seeking Centre’s approval for allocation of mining leases of “strategic minerals”

• Says there have been instances of states being swayed by local interests while allocating mineral concessions

• Also suggests it would be better if his ministry was “involved in the process of granting concessions for strategic minerals”