Addressing their concerns about the contents of the National Mineral Policy (NMP), Prime Minister Manmohan Singh has directed home minister Shivraj Patil to convene a meeting of chief ministers of mineral rich states and consider their views before finalising recommendations. Patil is heading the group of ministers on NMP 2007.
?In the wake of four chief ministers raising their apprehension on the proposed contents of the NMP and asking the Prime Minister to convene a meeting before finalising a recommendation, Singh has asked Patil to convene a meeting of the concerned chief ministers,? an official source told FE.
Chief ministers of the four states?Chattisgarh, Orissa, Jharkhand and Rajasthan?had jointly sent a letter to Singh, claiming that the proposed NMP would severely hurt these states? effort to lure investment.
The group of ministers on NMP had recommended that captive iron ore blocks could also be given to companies not investing in mineral rich states. Chief ministers feel this recommendation will jeopardise investments in these states as companies would prefer investing in other states that are not mineral rich but comparatively more developed otherwise. They argue that even the Anwarul Hoda committee has recommended allocating iron-ore blocks only to those who invest in mineral rich states. Chief ministers feel that if their views are not incorporated, their efforts to eliminate poverty would go in vain.
States fear that the Centre will take away some of the powers of states in granting mineral leases. States feel this will be unfair as minerals belongs to them.
However, the steel ministry is opposed to the Hoda committee?s particular recommendation, as if adopted, it will hurt Rashtriya Ispat Nigam Ltd (RINL), Ispat and Essar. These companies are located in Andhra Pradesh, Maharastra and Gujarat, states that do not have iron-ore reserves. If Hoda committee?s recommendation is accepted, these companies will not get captive iron-ore blocks.