Govt rejects demand to ban export of iron ore.

NEW DELHI: The Centre on Thursday turned down the demand of Opposition parties to ban export of iron ore and instead asked states to take stringent steps to prevent illegal mining.

Terming illegal mining a problem of governance, minister for mines B K Handique said in Rajya Sabha, "Merely because state governments are not able to prevent and stop illegal mining, we should not ban export of iron ore." The minister also rejected CPM's demand for nationalisation of mines to check illegal mining, citing "practical difficulties".

The demand for ban on export of iron ore is testimony to the growing concern over the dimension illegal mining has acquired, endowing mining barons with enough resources and, increasingly, political clout to influence decision-making in states like Karnataka, Jharkhand and Andhra Pradesh. The political power of Bellary brothers in Karnataka and the alleged loot in Jharkhand has seen the issue bursting into national discourse, especially because of the concern that the pillage of mineral wealth has contributed to the alienation of tribals, turning them into cannon fodder for Maoists.

The ministser acknowledged that the problem of illegal mining had taken onalarming proportions, but insisted that it was a "problem of governance".

"Rather than banning export of iron ore, we need to see there is no illegal production of iron ore," the minister said, adding that the need of the hour was to tighten the regulatory system.

Handique expressed hope that the Mines and Minerals Development and Regulation Act, 2010, will tackle the problem of illegal mining and ensure holistic approach in grant of mineral licences.

Participating in the debate, Leader of Opposition Arun Jaitley said illegal mining was done by those who had legitimate permission for lawful mining and asked the Centre to decide on banning export of the mineral.

His forceful plea intrigued many because of the influence the Bellary brothers wield in his own party. The brothers own iron mines on Karnataka-AP border and fattened on China's hunger for iron ore and have since diversified into politics to emerge as an alternative power centre in Karnataka BJP. The BJP leader suggested that mines should be allotted on priority to actual users and not to mere traders. "It is necessary to link the allotment of mines and minerals to the manufacturers or those who add value to it rather than mere traders," he said.

Last week, Congress president Sonia Gandhi, while addressing party MPs, had described illegal mining as a serious menace with "profound poltiical, social and economic implications".

CPM and trade unions of all stripes have also demanded ban on export of minerals.

On demands from members of CPM, BJD and BJP in RS to increase royalty on minerals, the minister said the rate of royalty was revised every three years and promised to have a re-look at the matter.

Source : timesofindia.indiatimes.com