Babulal Marandi, ex CM, Jharkhand, has written to Pralhad Joshi, Minister of Mines, complaining about the state government’s decision to reserve seven nos. of Iron Ore mines in favour of Jharkhand State Mineral Department (JSMDC) as being against public interest and National Mineral Policy 2019. He presented the following reasons to prove his point.
Firstly, he mentioned about the lack of fair distribution of natural resources, which clearly was against the National Mineral Policy 2019.
As per the data, SAIL and Tata Steel constituted about 70% area of total 115 sq. km of Iron ore mining lease in Jharkhand, with other private players having less than 30% of the lease area, out of which the state government again plans to reserve 11.78 sq. km area for JSMDC. All of this would eventually lead to only 15% of area left for the private players, clearly flouting the norms.
Secondly, there would be a considerable loss of revenue for the state after the reservation of mines in favour of JSMDC, as JSMDC would not be paying any premium for mining iron ore. Due to this, it is estimated that the revenue loss in the form of premium by the state government would be more than Rs. 40,000 crores over a period of 50 years, which is significantly a huge financial loss by any margin.
Thirdly, the minister said that this decision of reservation has given a wrong message among the investors, and termed this attitude of state government as not investor friendly, and against the National Mineral Policy 2019 as mandated by the central government.
Fourthly, the minister raised issues about the doubtful track records of JSMDC and its capabilities. He highlighted the past records of JSMDC, its setbacks, specially its inability to develop any block of coal and iron except Sikni Coal Mines, clearly stating as it being incapable of producing any desired outcome.
The ex CM stressed about the present government trying to arm twist central Ministry without bothering about the revenue generation of the state, which is against public interest. He requested immediate attention into the matter in perspective of law, policy as well of revenue generation in public interest, so that the state government doesn’t have to bear losses of revenue amounting to Rs. 40,000 crores, which could otherwise be used for state’s development.
