Agencies
New Delhi, Mar 29:
Chief Ministers of five mineral-rich states - Madhya Pradesh, Rajasthan, Orissa, Chattisgarh and Jharkhand - today said the new mineral policy favoured multinationals, and sought the intervention of Prime Minister Manmohan Singh to safeguard the interests of their states.
"The states' right to select the best applicant (for mining rights) should not be compromised in the name of seamless transition or security of tenure, and should not be usurped by the central government under any pretext," the CMs said in a memorandum to Singh demanding that a task force be constituted to look into issues raised by them before the Minerals and Metals Development and Regulation Act (MMDR) was amended.
Jharkhand is the only UPA-ruled state while the other four are ruled by BJP and its allies.
"If the policy is accepted as it is, it may result in a situation where a few MNC mining companies will acquire control over vast mineral resources," the memorandum said.
The memorandum pointed out that state-run mining PSUs have been given a raw deal in the policy as it suggests reserving ore bodies to state Agencies
only in areas where private players have not applied for any exploration. "On the other hand, public sector firms could have been utilised for procuring best technology available in the world. In any case, reservation for state mining PSUs should be continued," they pointed out.
The CMs also said the mineral policy deprived states the rights of granting mineral concessions to potential investors, which could have generated employment and contained regional imbalances. "Instead, more emphasis has been given on FDI and export of minerals," the memorandum said.
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