Mining in Karnataka is, no doubt, an extremely profitable business. The enormous wealth it has created for a few individuals and the effect of this wealth on Karnataka politics is making headlines. It has raised questions whether the state is giving away mining rights at throwaway prices and whether, as a result of this largesse, the state exchequer is losing huge revenues.
These issues are receiving additional attention in the backdrop of a new draft National Mineral Policy (N.M.P.) based on the report of a High-powered Committee headed by Dr. Anwarul Hoda. As geologists who have worked in government and private sectors for over 35 years each, we strongly feel that the following issues must be considered.
1.The draft N.M.P. should be circulated among all the concerned state & central organizations calling for their views compulsorily on every point/ paragraph within a stipulated time - say 90 days. Also wide publicity is to be given through the media calling for comments/suggestions on this draft NMP. within 90 days from all the stakeholders. All such correspondence should be put on website for the information of all the concerned & for the purpose of transparency.
2. Environmental damage and economic benefits are two opposite aspects of mining and they should be carefully balanced. Sustainability must also be considered.
3. The leasing process should be streamlined to minimize delays.
4. All the information related to mine leasing should be on a website so that anybody can apply for the mining rights of any area online, get a lease & carry on the mining activity in a transparent way. This will eliminate corruption at the very beginning and opportunity for anyone to indulge in illegal activities. Stringent punishment clauses should be incorporated for both the illegal mining party and those who abet such acts.
5. Only low grade ores should be allowed to be exported. High grade ores should be earmarked for domestic consumption and only finished products should be permitted to be exported. The price of the ore is a small fraction of the price of the finished goods (and the price of other precious metals present in the ore) and so by exporting raw ore, we lose enormous amounts of revenue. .
6. Right now, the administration in the departments of mines and geology is in the hands of IAS officers who have very little knowledge of the subject. This should be stopped immediately and the administration should be entrusted to capable technical personnel. This will improve the morale of the departments and reduce corruption greatly.
7. Mineral administration is a full-time job involving deep technical knowledge as well as huge financial transactions. It should not be clubbed with ground water exploration as it is being done now. Ground water is also a subject which needs full time involvement because of its importance for drinking, irrigation and industry. If these two departments are combined, neither will get the attention it deserves.