One of the many factors that determine the economic growth of a nation is its mineral policy. Mining is considered one activity that if carried out in an organised and systematic manner can bring economic prosperity to a nation. In India too about a total of 7,54,851 hectares of land is on lease for mining as per the ‘CSE sixth state of India Environment Report´, that throws some light on environmental aspects of mining in the states.
The minerals can possibly make a nation rich, if they are mined profitably. However, the scenario is pretty much grave if we study the top 50 mining districts of India. About 70% of these fall in the category of the most backward districts of the nation. Jharkhand and Chhattisgarh, for example, are one of the richest states in terms of mineral resource, but unfortunately both of them are facing problems related to poverty and backwardness.
Chandra Bhushan, associate director at the Centre for Science and Environment (CSE) clearly disagrees with this claim that the leasing of land for mining activites promote development in the region. For example in Karnataka while the value of minerals produced increased over the last three years, the revenues generated from mining remained a dismal 0.7-0.8% of the state’s total revenue. Bellary, which produces 20% of the iron ore of the country worth Rs 10,000 crore, pays just Rs100 crore as royalty.
In fact the report states that for every 1% that mining contributes to India’s GDP, it displaces three to four times more people than all the developmental projects put together. This figure itself puts to task the belief that mining is a positive contributing factor to the growth of the country.
Well there are many factors that contribute to this poverty stricken state of the people rather that the activity itself being a contributary factor. Improper implementations of the mining laws and subesquent lack of checks. Over exploitation of the labours, privatisation in many mining sectors and frequent flauntering of mining laws by them, as also a lack of well thought out plan of action to start mining projects are some of the factors that have lead to backwardness in the top mining districts.
A lot remains to be paid attention to, before leasing out any further land to any private players for the activity pertaining to maining. Also a strict check needs to be ensured to bring about upliftment of the region and also to ensure no illegal mining activites are taking place.Unless these conditions are fulfilled, the positive contribution of mining in the growth of the country would remain an illusion.