CURRENT NEWS

September 2010

'Fabricated' mining EIAs slammed at meet

Panaji, September 29, 2010: The environment impact assessment (EIA) reports submitted by mining companies to the ministry of environment and forests (MoEF) came under scrutiny of mining-affected persons and others at a meeting with a Western Ghats' ecology experts panel at Dona Paula recently. EIAs are used by the companies to seek environmental clearances to work their mining leases. They are placed during public hearings conducted by the collector through the Goa state pollution control board (GSPCB) to hear views of stakeholders before commencement of mining activity. Various speakers at the meeting in Dona Paula alleged that EIAs are often fabricated and misrepresent facts about the location of mining areas near sanctuaries, water bodies and archaeological sites. Hartman D'Souza, a participant, said the mining industry needs to be honest. "EIAs are cut-and-paste jobs executed by a Hyderabad-based laboratory and the MoEF should look at its mandate and consider EIAs seriously," said D'Souza. A mining consultant countered saying NGOs should also be transparent as they often do not visit the sites before commenting. Gaurav Shirodkar, a young participant at the interactive meeting, said all false EIAs should be reassessed and till this exercise is carried out, the mining activity being done should be halted. "If not for the false information, the mining activity may probably not have even started," argued Shirodkar. The fresh exercise should not be entrusted to some impartial agency, he added. Participant Zarina D'Cunha claimed EIAs are not presented at gram sabhas, while consumer activist Roland Martins called for a monitoring mechanism at the taluka level as agencies such as the Indian bureau of mines are most times conspicuously absent during EIA hearings. The monitoring mechanism could comprise affected villages, Martins suggested. Reboni Saha of the Goa Bachao Abhiyan said NGOs were interested in helping the mining sector in rehabilitation and greening of mining areas. Rama Velip, a resident of Colomba affected by mining, said that during the monsoon flooding carries silt to paddy fields, coconut groves and near human habitations. D V Pichamuthu, director, federation of Indian Mineral Industries said the contours of the western ghats were not demarcated. He agreed that miners cannot excavate and just walk away and rehabilitation will have to be carried out. The industry is thinking of ropeways in hilly regions for ore transportation and mining operations without blasting at the site.

(Source:http://timesofindia.indiatimes.com/city/goa/Fabricated-mining-EIAs-slammed-at-meet/articleshow/6648047.cms#ixzz10vrRse2v)

Another jolt for Vedanta: HC orders closure of TN plant

Chennai, September 29, 2010: The Madras High Court on Tuesday ordered the immediate closure of a copper smelting plant belonging to Sterlite Industries — a Vedanta group company in Tamil Nadu’s Thoothukudi district for damaging the environment. The ruling has come as a huge blow to the parent company already in the crosshairs for its mining plans in Orissa’s Niyamgiri hills. Disposing of a batch of petitions, a division bench comprising Justices Elipe Dharma Rao and N Paul Vasantha Kumar ordered that the unit be shut down immediately. The court criticised the Union Environment Ministry for clearing the plant. A Sterlite spokesperson said: “The company is awaiting full text of the order so as to decide on necessary recourse measures.”

(Source:http://www.indianexpress.com/news/Another-jolt-for-Vedanta--HC-orders-closure-of-TN-plant/689764)

GDP also Green Domestic Product

Bangalore, September 29, 2010: We must accept the reality that there is a trade-off between growth and environment. Hard choices need to be made about large projects that are considered central to economic growth, but are detrimental to the environment, said Jairam Ramesh, Union minister of state with independent charge for environment and forests. Ramesh was delivering the 11th ISRO-JNCASR Satish Dhawan memorial lecture in Bangalore on Tuesday to a packed hall of scientists and intellectuals on “The Two Cultures Revisited: Some Reflections on the Environment-Development Debate in India”. He said that to arrive at decisions to untangle the trade-off, three options present themselves — “yes”, “yes, but” and “no”. The real problem is that the growth constituency is used to “yes” and can live with “yes, but”. It cries foul with “no”. The environment constituency exults with “no”, grudgingly accepts the “yes but” but cries foul with a “yes”. One clear lesson from this is to maximise the “yes, but” where this is possible. “Yes, but” cases aside, there will most certainly be instances, few and far between in the overall scheme of things, when a firm “no” will be required. “In such cases that have complex scientific, ecological and social dimensions, my approach has been to make decisions in the most consultative and transparent manner possible,” Ramesh said. This is what his department did in the Bt brinjal case and in the case of the Vedanta mining project in Orissa, he added. “I am convinced that the time has come to make trade-offs explicit and make the correct choice, however unpalatable they might be to some,” he said. India not having a system of green accounting is a problem, he said. “Ideally, if we can report both Gross Domestic Product and Green Domestic Product, we will get a better picture of the trade-offs involved in the process of economic growth,” he said, adding that he has set the ball rolling in the last few months so that by 2015 at least India can have a system of green national accounting.

(Source: http://www.dnaindia.com/bangalore/report_gdp-also-green-domestic-product_1444975)

Illegal coal mining revenue going to Naxals

New Delhi, September 29, 2010: Money from illegal coal mining in tribal areas is helping fuel the violent insurgency of India’s Maoist rebels, commonly knows as Naxals, according to an official in India’s coal ministry. “There has been growing evidence that revenue from illegal mining is going towards Naxal activities,” Union coal secretary C. Balakrishnan said. “It is a difficult problem. Efforts are being made to curtail it at every level.” Mint couldn’t independently confirm the assertion. Many of India’s coal mines are located in remote forests populated by tribals. Poverty, illiteracy and exploitation of labour are rife in these areas, which form the pocketboroughs of Naxals. Criminal gangs active in these parts extract coal illegally and also steal the mined fuel from government depots. To prevent illegal mining, the government has taken steps such as filling up holes with stones and debris, digging trenches to isolate illegal mining sites and sealing off access to abandoned mines. Still, coal continues to be illegally mined even as the country’s vital source of energy is unable to feed growing domestic demand. India has a known gross resource base of 264,000 million tonnes (mt), the fourth largest in the world, of which proven reserves are around 101,000 mt. Naxals have choked the movement of coal from the mines of state-owned Coal India Ltd, the country’s largest producer of the fuel, Mint reported on 2 December. “The Naxal movement has affected coal production of Central Coalfields Ltd in the state of Jharkhand mainly due to frequent bandhs (strikes) called by Naxal organizations and also due to stoppage of work because of threats meted out to the workforce engaged in coal production and transportation,” Sriprakash Jaiswal, minister of state (independent charge) for coal, told the Lok Sabha on 4 August. The Naxal insurgency is particularly strong in Jharkhand, Chhattisgarh, Andhra Pradesh, Madhya Pradesh, Bihar, Orissa, West Bengal and Maharashtra. Prime Minister Manmohan Singh has decribed it as the country’s gravest internal threat. With Maoist violence escalating and scores of security personnel and civilians being killed this year, the Union government recently urged the governments of Chhattisgarh, Jharkhand, Orissa and West Bengal to run a joint operation against Maoist insurgents, and promised financial and logistical support to boost their security infrastructure. Besides fighting the Naxals, the government has prepared a special infrastructure development plan for districts where the problem is most acute. It also wants coal mining companies to share a part of their revenue with local residents who are displaced by mining—a move that it thinks will wean tribals away from Naxalism.

(Source:http://www.livemint.com/2010/09/29004233/Illegal-coal-mining-revenue-go.html?h=B)

RPower looks to generate 25,000 MW by 2015

Mumbai, September 28, 2010 Reliance Power intends to grow its capacities 25 times from 600 MW to nearly 25,000 MW by 2015, Mr Anil Ambani, Chairman, said at the annual general meeting here on Tuesday. He told shareholders that it took NTPC, a Maharatna, 30 years to commission 25,000 MW while RPower was hopeful of doing the same in five years.

Six pillars

“Our vision to become the country's largest power company rests on six pillars — land, feedstock, water, environmental clearance, technology and equipment, and capital,” he said. The company has secured the first four for nearly all of its 29,000 MW thermal portfolio,” he said. The financial closure for 10,000 MW, which includes Sasan and Krishnapatnam on a project-specific basis, has been done. At over Rs 50,000 crore, the fund-raising programme was the largest in India's history.

Power sources

RPower would also invest Rs 30,000 crore in Arunachal Pradesh in hydroelectric projects. The company hopes to bring on stream 3,000 MW by 2016. With Shanghai Electric Co as a strategic partner, the company is confident of bringing in supercritical and ultra supercritical technologies. Mr Ambani said RPower would become the largest private mining company in the country producing 100 million tonnes of coal annually. The company has domestic coal reserves of over two billion tonnes in Madhya Pradesh and Jharkhand, which could potentially support generation of 20,000 MW every year for 25 years. In addition, the company has access to another two billion tonnes of coal resources in Indonesia, which too could help generate 10,000 MW a year, also for 25 years. In addition, there is capacity to generate another 2,000 MW from the coal-bed methane blocks acquired from RNRL in Andhra Pradesh, Madhya Pradesh and Rajasthan, he said.

Gas-based plants

Subsequent to the Supreme Court ruling on the gas issue, the company has embarked on a plan to set up gas-based generation of up to 10,000 MW. RPower has begun construction of the 2,400 MW gas-based power project at Samalkot, Andhra Pradesh, at an outlay of over Rs 10,000 crore and is hopeful of accelerating its commissioning.

Apprehensions

However, some shareholders like Mr Sharadkumar Shah, an electrical engineer, said they were not too enthused by the projections and extrapolations made. “We are just producing 600 MW,” he said, adding that merger, de-mergers and floating of special purpose vehicles should come only after profits, more so when profits accrue due to investments made with IPO money. Another shareholder said he could only cite the example of an energy company, which is part of a major steel group, and the progress it has made.

(Source:http://www.thehindubusinessline.com/2010/09/29/stories/2010092952920200.htm)

Govt's latest mine profit sharing plan faces heat

Kolkata, September 28, 2010: Firms say revenue sharing with locals is noble but not practical

The provision in the new mining Bill approved by a group of ministers last week for 26 per cent profit sharing by mining companies with affected residents of the area they operate in hasn’t been welcomed by many in the sector. The new Bill, in general, seeks to expedite the grant of mining rights in a transparent manner, aiming to attract more investments in the sector from industries such as steel. India’s top three mining companies Coal India, NMDC and Sesa Goa will add Rs 3,600 crore to the District Development Fund if the 26 per cent profit sharing proposal with local residents goes through. That’s almost half the disinvestment proceeds from the REC, NHPC and OIL India follow-on offers in 2009-10. The proposal has already sparked stiff opposition. It’s not often that a public sector company speaks out against a government proposal, but Steel Authority of India Ltd chairman, C S Verma, was the first to voice scepticism on the profit sharing proposal. Since then, many others have. The proposal has caused a flutter in the metals and mining circuit. The industry’s take is simple: It’s noble, but impractical. “The proposal is aimed at mitigating problems with land acquisition. But why should a land loser in the mineral-rich area get so much more than agricultural land losers? Mineral-rich areas have scanty population, so a lot of wealth will be distributed among a few. It will completely distort factor pricing,” said a public sector mining executive. The average population in mineral-rich Jharkhand is 20-25 people for about 600 hectares. “It will just breed inequity in the system,” he added. Moreover, some of the best mines in the country such as Bailadila are under the forest department. NMDC’s Bailadila deposits, with one of the highest iron content, produce about 22 million tonnes. “Does it mean we should stop the corporate social responsibility work that we normally do in the Bastar region?” asked an NMDC official. Coal India Chairman Partha S Bhattacharyya, however, expressed support for the proposal. “It is an effort to promote distributive justice. In principle, we fully agree with the empowerment of people affected by mining projects,” he said. Officials, on condition of anonymity, said implementation of this plan would put pressure on Coal India, which sells the fuel at government-regulated prices, lower than the market norm. “If the proposal is implemented, we may have to increase the price of coal, which will have an impact on the cost of electricity and other user industries. The government should keep this in mind,” the officials said. "It is important to recognise that coal mining is closely associated with the energy security of this country.”

Money handling

The deployment mechanics is also under suspicion. "We spend around Rs 100 crore on an annual basis on corporate social responsibility. How will the funds be used? The BEE in South Africa (Black Economic Empowerment programme, on which this plan is supposed to be based) hasn’t worked. Few people have got value out of it," says Tata Steel’s group chief financial officer, Koushik Chatterjee. Bhattacharyya says corporate social responsibility, which is undertaken by mining companies, can’t always be monetised. “Skill development for making people employable is also a cost. By that logic, maybe some companies already spend a considerable amount towards the local population,” he said. The royalty paid by the companies, which is meant to be used for development of the region, goes to the Consolidated Fund of India. The obvious question is, if the scheme has failed to iron out development-related problems, why should the outcome of the District Development Fund be any different? The amount that companies would have to shell out is staggering, but that is just one of the many problems. For metal companies, the accounting is likely to be complicated. “How will it be done? What will be the transfer pricing?" asked Sterlite’s finance director, Tarun Jain.

(Source:http://www.business-standard.com/india/news/govt%5Cs-latest-mine-profit-sharing-plan-faces-heat/409395/)

MinesMin to MoEF: Introduce clear provisions for 'Go', 'No Go' areas

New Delhi, September 27, 2010: After the Coal Ministry, now the Mines Ministry is upset with the Union Ministry of Environment and Forests (MoEF). Hitting out at the MoEF for sitting on the renewal applications for 280 mines in the country, it has also demanded inclusion of firm provisions in the Forest Conservation Act to enable statutory declaration of ‘Go’ and ‘No Go’ areas to help inflow of fresh investments in the mining sector. In a note prepared for the Cabinet Secretariat on the environment and forest clearances for infrastructure projects, the mines ministry pointed out that several mining leases granted prior to the introduction of the Forest (Conservation) Act, 1980, were due for renewals and expressly require Forest Clearances (FC). Interestingly the Mineral Concession Rules 1960 allow such mines to function on deemed extension if the concerned state government failed to convey its decision on the renewal to the applicant before expiry of the lease. “A combined operation of the two laws has led to a situation where several mining leases have expired, and due to pendency of FC, are operating on deemed extension on the non-forest portion of the lease area. These mines are prone to nebulous regulation by the states, creating a condition most conducive for illegal mining,” the ministry argued in the note. Reminding the MoEF that while it has developed FC monitoring software at the central level, it has no mechanism for monitoring delays at the state government level. “The uncertainties in the system are leading to huge systemic inefficiencies,” it argued. The mines ministry cited that there have been instances where two adjoining leases of the same lessee are not being amalgamated because one was subjected to FC Act and the other was not. “Instead of mere policy guidelines on Go and No Go areas, which will be indicative, and subject to actual application of provisions of FCA, the need of the hour was to introduce clear provisions in Forest legislations for various specific purposes. Clarity on this aspect is crucial to enabling fresh investments to flow in for high-tech reconnaissance and prospecting,” the ministry contended. In view of the Supreme Court Central Empowered Committee's observations that out of the 596 mines in Orissa, 215 were functioning on deemed extension basis, the ministry has directed the Orissa government to dispose pending renewal applications by holding special camps in the mining districts involving all concerned departments. Of the 280 mines where renewals were pending, Orissa has the highest number of 231 cases, followed by Karnataka (41), Maharashtra (8) and Sikkim (1).

(Source:http://www.indianexpress.com/news/minesmin-to-moef-introduce-clear-provisions-for-go-no-go-areas/688516/0)

SAIL, Tata Steel find common ground, oppose giving 26% profits to displaced

New Delhi, September 25, 2010: India’s biggest steel companies state-owned SAIL and private sector giant Tata Steel have found common ground in opposing the Group of Minister's decision requiring miners to share 26 per cent of their net profits with locals displaced from their mining areas. Both SAIL and Tata Steel have captive mines that feed their steel producing units. A GoM chaired by Finance Minister Pranab Mukherjee had recently reached a consensus on the draft Mines and Minerals (Development and Regulation) bill, 2010 which among other things mandates mining companies to fork out 26 per cent of their net profits to displaced locals. Leading industry chambers including the CII and Ficci had earlier opposed the move and made presentations before the GoM chair claiming this provision would increase the costs of companies and render them unviable. They said that worldover one-time compensation to the displaced peoples was the norm. Both SAIL and Tata have expressed resentment stating that the iron ore generated from their mines was entirely for captive use and had no commercial value. They said such companies should be treated differently from stand-alone miners. The opposition from steel producers gathers steam with the GoM slated to wind up its discussions before the Commonwealth Games. “We need a consensus on the modalities of the payment. We need to know whether this will form a part of the expenditure or the royalty. We fully share the concerns of the government, but more clarity is needed on ensuring that the provisions are practical and implementable,” CS Verma, chairman, SAIL, told The Indian Express. He pointed out that there were problems with the proposal as captive mines were not accounted separately in a company’s books, and hence the calculation of their profits was a difficult exercise as it depended on so many factors. Tata Steel too sought clarity on the proposal. According to the private sector major such social costs must be part of the operational costs and not derived as a share of the profit. “Profit can be impacted by several factors. Whereas when it is treated as a part of the operating cost, it will be consistent, transparent and sustainable through the life of the mine. It is suggested that the quantum can be decided on similar lines of the royalty,” Partha Sengupta, Vice-President, Raw Materials, Tata Steel said. According to Tata Steel, it was imperative that funds be utilised in consultation with the community through a special development vehicle such as a trust or Local Area Development fund administered jointly by the community, government and the corporates operating in the area. Jindal Steel and Power MD Naveen Jindal is also learnt to have described the proposal as discriminatory. Steel Minister Virbhadra Singh, who is himself a part of the GoM, has sought a “special consideration” for PSUs like SAIL and NMDC on the profit-sharing proposal. The Mines Ministry has, however, maintained that the provision will stay despite Singh endorsing the demands of PSUs.

(Source:http://www.indianexpress.com/news/sail-tata-steel-find-common-ground-oppose-giving-26-profits-to-displaced/686838/0)

Power Ministry moves to save projects in ‘no-go' mining zones

Mulls boundary adjustments, sites in ‘go' areas.

New Delhi, September 25, 2010: Amid plans to ring-fence nearly half the country's coal-bearing areas as no-mining zones, the Power Ministry is considering the option of accommodating affected blocks through boundary adjustment where permissible or moving proposed sites to the ‘go' zones. The Ministry of Environment and Forests had earlier classified certain coal blocks as ‘no-go' zones — areas with dense forest cover where mining will not be allowed. Existing blocks, where “substantive work” has been done by the developer on the ground, however, will not be affected by the new ‘no-go' classification, Power Ministry officials said. “The problem is mostly with the coal-fired power projects that have been lined up for the Twelfth Plan. We are working on the blocks that are slated to be affected under the new classification. Some blocks could be accommodated through boundary adjustment while others could be shifted from ‘no-go' to ‘go' zones,” a senior Power Ministry official said.

Submission of bids

As a result of the new environmental classification, the Power Ministry had further extended the date of submission of initials bids for a proposed Ultra Mega Power Project (UMPP) in Chhattisgarh, as the coal mines initially earmarked for the project fell under the “no-go” zones. Coal block allocated for another UMPP planned in Orissa is also awaiting environment clearance. The Prime Minister's Office has for the past two months been mediating to find a solution on the issue of classification of coal mining belts into ‘go' and ‘no-go' areas, which saw the Ministries of Coal and Environment locking horns. The Coal, Power and the Steel Ministries had separately petitioned the PMO for breaking the logjam, citing delays in projects under the new mining proposal. A PMO-appointed panel looking at the issue, headed by Planning Commission Member, Mr B.K. Chaturvedi, is said to have suggested that the Cabinet Committee on Economic Affairs (CCEA) is the right forum to decide on the row among the Ministries over classification of coal-bearing areas and providing for alternative coal blocks to those affected by this new ‘no-go' zones policy, officials said. Deliberations on the issue were held by the PMO during the last two months and it was felt that in some areas companies have already made investments, especially those awarded the UMPP, and remedial measures needed to be taken in specific cases. For a company to get an alternative mining location, the panel had recommended that blocks falling in a ‘no-go' zone should have been awarded before end of June 2010. The nine coalfields that were analysed included North Karanpura and West Bokaro (Jharkhand), IB Valley (Orissa and Chhattisgarh) Singrauli (Madhya Pradesh and Uttar Pradesh), Talcher (Orissa), Wardha (Maharashtra), Mandirgarh and Hasdeo (Chhattisgarh) and Shoagpur (Madhya Pradesh).

(Source:http://www.thehindubusinessline.com/2010/09/25/stories/2010092553810100.htm)

Coal mining will be increased to meet demand: Jaiswal

New Delhi, September 25, 2010: In a bid to increase coal production, the government will soon allow up to 20 boreholes in a square km area for coal exploration from one borehole in 1.5 square km permitted now, Coal Minister Sriprakash Jaiswal said Friday. 'Currently we produce around 530 million tones coal and import 67 million tones. To meet the existing shortfall there is urgent need to increase the production by bringing more coal bearing area under mining,' Jaiswal said at the 3rd Coal Summit. He said coal ministry was in consultation with forest and environment ministry to allow more boreholes for coal exploration. Jaiswal expressed hope that forest ministry would give its green signal to the proposal soon that would allow 15-20 boreholes in per square km area without any forestry clearance. He said major constraints in augmenting coal production were related to land acquisition, forestry and environmental clearances, inadequate evacuation infrastructure in major coalfields and law and order problems, particularly in some states. 'To deal with the adverse law and order situation around some of the coal projects, the coal ministry has taken up the matter with the ministry of home affairs for augmentation of the present strength of CISF personnel in the coal companies,' said Jaiswal. On the government's efforts to increase coal production, Jaiswal said the production capacities of public sector companies have been increased through new projects. The government has allocated 208 coal blocks, out of which 26 have commenced the production. The contribution from these blocks is expected around 104 million tones in next five years, coal minister said.

(Source:http://sify.com/finance/coal-mining-will-be-increased-to-meet-demand-jaiswal-news-default-kjyracdafaf.html)

HC bans sand mining across Maharashtra

Mumbai, September 25, 2010: A year after it banned sand mining in CRZ areas, the Bombay high court on Friday extended the ban on sand extraction across the state. "The extraction of sand all over Maharashtra has become a serious issue posing an environmental challenge... damage to river beds thereby resulting in serious threat of flood or diversion of water flow," said a division bench of Justice B H Marlapalle and Justice Amjad Sayed. The court directed the state additional chief secretary (revenue) to forthwith communicate the HC decision to all the district collectors across Maharashtra by fax or e-mail. The court was hearing a petition filed by Sagar Shramik Hatpati Walu Utpadak Sahakari Sanstha Maryadit which alleged that sand mining was wrecking havoc on the environment. The state's lawyer sought time to file an affidavit saying that the government was still working on its sand mining policy. The court pointed to a report of a former additional chief secretary who had stated that auctions for sand extraction licences had resulted in heavy losses to the state treasury. In its interim order banning sand mining, the court made it clear that the ban will also apply to persons who currently hold license to extract sand. The court has scheduled further hearing in the case after four weeks and has asked the government to file its affidavit in response to the petition. A year ago, following a PIL filed by city-based Awaaz Foundation, the high court had banned sand mining in all CRZ areas. Sumaira Abdulali of Awaaz told TOI that despite the ban, illegal sand mining was being carried out in the sea away from coastal areas. "Friday's ban will help stop mining of sand across the state," said Abdulali.

(Source:http://timesofindia.indiatimes.com/city/mumbai/HC-bans-sand-mining-across-Maharashtra/articleshow/6623432.cms)

Coastline set for digital mapping

Mumbai, September 24, 2010: With the Centre issuing the revised draft Coastal Regulation Zone (CRZ) notification last week, the state environment department has decided to roll off the process of digitising maps detailing Maharashtra’s 720-km coastline. The digitised maps will serve as a reference point and will be compared to live satellite images to deal with complaints pertaining to encroachments, destruction of mangroves, extensive sand mining and violations of coastal norms. “We were waiting for the draft notification before carrying out the digitisation to be clear about the Centre’s definition of CRZ. Now that the notification maintains that CRZ will continue to be the coastal stretches within 500 metre of high tide line on the landward side, we will immediately start off the four to five month process,” said State Environment Secretary Valsa Nair-Singh. Maps detailing the coastal stretches of the state, also known as the Coastal Zone Management Plan (CZMP), were finalised and approved by the Ministry of Environment and Forest in 1996. The CZMP for urban areas, on the scale of 1:4000 (1 cm on map for every 40 m on ground), was prepared by the Thiruvananthapuram-based Centre for Earth Science Studies. For rural areas, the work was done by Ahmedabad-based Space Applications Centre (SAC) on a scale of 1:25,000. Both these agencies are among the six accredited by the Central ministry, the other four being the National Institute of Oceanography, Institute for Ocean Management (Anna University, Chennai), Institute of Wetland Managemen t and Ecological Design (Kolkata) and Survey of India (Dehradun).

(Source:http://www.indianexpress.com/news/coastline-set-for-digital-mapping/686944/)

India's ONGC rules out counter-bid for Cairn India

Mumbai, September 24, 2010: India's state-run Oil and Natural Gas Corp ruled out making a bid for the local arm of Britain's Cairn Energy on Thursday to counter a rival offer by mining group Vedanta. "The counter offer date is gone. We made a conscious decision not to make a counter bid. We have done a very thorough evaluation," said ONGC chairman R.S. Sharma. "We have done whatever should have been done to protect ONGC's interests," he added, after reports that the planned bid could have overstretched the public sector company's balance sheet. The move paves the way for Edinburgh-based Cairn Energy to sell its controlling stake in its local unit Cairn India Ltd to the London-listed resources giant Vedanta, analysts said. Last month, Vedanta announced an offer worth up to 9.6 billion dollars for a majority stake in Cairn India, whose most important asset is the oil-rich Mangala field in the western state of Rajasthan. Reports suggested that Vedanta could buy up to 60 percent of Cairn India. Vedanta has run into controversy over a mining project in the eastern state of Orissa, which was fiercely opposed by local tribal villagers, a swathe of environmental and human rights campaigners plus the Indian government. Cairn India holds stakes in 10 oil and gas blocks in the country and has tie-ups with ONGC, which is energy-hungry India's largest oil producer by output.

(Source:http://www.google.com/hostednews/afp/article/ALeqM5g_cowiK17Aw9bt114n-zlV-l3xQA)

Fresh names for forest watchdog

- New government gets cracking on pending proposals that will benefit industry

Ranchi, September 23, 2010: The state government is going to propose names of members who will make up the State Environment Impact Assessment Authority and State Expert Appraisal Committee afresh as the nine names sent earlier have been rejected by the Union ministry of environment and forest. The authority and the committee will be entrusted with the task of screening forest diversion proposals of different upcoming mining and industrial projects in the state. Among the nine names sent by the state forest department to the Centre were those of environmentalist Hem Shrivastava, Dhirendra Nath Sadhu, K.N. Sharma, Neeraj Kumar Singh, former member-secretary of JSPCB R.K. Sinha and Mecon. The ministry reportedly said the individuals did not fulfill the required qualification for the post of committee members. The move to send the names again was initiated a day after chief minister Arjun Munda cleared the trust vote hurdle with ease, on September 15. In order to put in place an authority/committee, the state administration during President’s rule had sent a forest diversion proposal to the Union ministry regarding iron-ore mining by Jindal Steel & Power Limited (JSPL). The proposal was, however, sent without any specific recommendations. Similar forest diversion proposals of ArcelorMittal, JSW Steels Jharkhand Limited and Horizon Ispat, among others, are lying with the state environment and forest department. “We will first wait for a response from the Union ministry regarding JSPL. The department has also readvertised the plan to constitute the authority/committee as the Centre has rejected the earlier sent names,” M.K. Verma, deputy secretary in the state forest and environment department, told The Telegraph. The advertisement suggests constitution of an authority and committee for a period of three years. While the authority will comprise three members (including chairman), the number of committee members cannot exceed 15. No member can be a serving government officer or an industry representative or representative of any environmental activist group. A majority of the iron-ore mining areas in West Singhbhum earmarked for steel sector are in reserved forests where non-forestry activities are prohibited. In these circumstances, the role of a relevant authority and committee is important as they would act as agencies to suggest ways to minimise the effect of industry/mining on the environment. A final call will be taken by the corresponding committees at the central level.

(Source:http://www.telegraphindia.com/1100923/jsp/frontpage/story_12968775.jsp)

SAIL mining lease renewal

Ranchi, September 23, 2010: The state mines department has finally decided to renew three iron ore mining leases of Steel Authority of India Limited (SAIL) in West Singhbhum district, a proposal which is pending since the time of unified Bihar. The move will boost the public sector undertaking’s expansion drive. SAIL is planning to increase steel production across its units in Jharkhand besides going for tie-ups with Posco and Kobe. However, the decision has to be cleared by the state cabinet. “This will be renewal-cum-amalgamation. Lease I, II and III of Kiriburu-Meghataburu will be merged together as the mining areas continue in a stretch,” state mines director B.B. Singh told The Telegraph. He added that the proposal, originally moved by the office of West Singhbhum district mining officer, had been sent to the cabinet co-ordination department for approval of the council of ministers. State mines secretary N.N. Sinha confirmed the development, adding that renewal of these leases had been pending since early 90s. SAIL and its merged subsidiary IISCO (Burnpur) together hold 11 iron ore mining leases in Jharkhand. Out of these, two mines in Chiria (Ajitaburu and Sukrilatur) and one in Gua (Jhilingburu-I) are locked in litigation. The other leases, which are under deemed extension and are awaiting renewal, are leases I, II and III of Kiriburu-Meghataburu, Budaburu and Dhobil of Chiria and Jhilingburu and Topailor of Gua. SAIL is already working to enhance its steel production in Jharkhand from 5.2 million tonne per annum (MTPA) to 29 MTPA. It has started increase the capacity of the Bokaro steel plant to 7.5 MTPA. Besides, the PSU is also in final stages of negotiations with Korea-based steel giant Posco and Japan’s Kobe for joint ventures, which will ensure quality steel production by using low-grade iron ores. According to reports, Posco will be allotted space in Bokaro Steel while Kobe will use SAIL’s facilities in Durgapur, Bengal. On September 15, the new managing director of Bokaro Steel Limited, Shashi Shekhar Mohanty, met chief minister Arjun Munda. Sources said Mohanty appraised Munda about SAIL’s future plan in Jharkhand, including expansion of Bokaro Steel and other units. Sources at West Singhbhum district mining office in Chaibasa said SAIL was undertaking mining activities in Durgaiburu and lease III of Kiriburu-Meghataburu area while the rest of the mines are lying abandoned. This apart, several other mines, which were earlier held by IISCO, are locked in litigation in the Supreme Court. The bone of contention is the Jharkhand government wants to allot a part (to be precise depending on the exact requirement) of the mining area to SAIL and the remaining portion to prospective mega-sector private investors, who have lined up to start mining and steel production in the state.

(Source:http://www.telegraphindia.com/1100923/jsp/frontpage/story_12971587.jsp)

Compensating the displaced Define landowner's stake correctly, don't mess with profits

New Delhi, September 23, 2010: The government appears to be moving towards finalising legislation to ensure that those displaced by mining projects get 26 per cent of the profit accruing from them. This is in response to the growing realisation, after the rise of militancy in central India, that those dispossessed by such projects, mainly forest-dwelling tribals and cultivators, need to be made a part of the development process as winners, not losers. The intention is sound but the device chosen is not. Government cannot pre-empt revenues like this and hurt mining interests. There are other ways in which government can raise revenues rather than eat into profits, and that too in perpetuity. After all, there is also the issue of inter-generational equity involved here. Industry associations have opposed the idea on the ground that this may make such projects unviable. While that was seen as largely the stance of the private sector, the opposition to the idea has now been strengthened by public sector giant Steel Authority of India Limited (SAIL) joining the naysayers. The SAIL chief’s contention is that currently mines are owned by the company which handles the entire steel-making process; creating a separate entity for mining will be problematic. It is also worth noting that a share of the profits may not be good for the displaced in the long run as there can be periods of losses (mineral prices can crash during a serious economic slowdown) and imaginative accounting can turn black into shades of red even in good times. The best way to proceed in this matter is not to lose sight of the fundamentals. If tribals and cultivators, deprived of their traditional means of livelihood by development, should benefit and not suffer from it, then how best to go about the task? Paying the entire compensation as a lump sum is not a good idea. Those not used to seeing big money can blow it up, aided and abetted by sharks. The cardinal aim must be for the displaced to acquire new skills and new means of livelihood with the help of the capital available as compensation. Hence, the Haryana model of splitting up the compensation into a lump sum component and an annuity that runs for 30 years is gaining acceptance. But the question of training and help to start new ventures remains, as also the need to recreate displaced communities and preserve at least some parts of their tradition. Tata Steel, the other integrated steel maker which says it has always shared its prosperity with neighbouring communities, has made some suggestions. Make the social cost of resettlement a part of operational costs, not profits, during the life of the mine. It can be levied in the manner of mining royalty. It also focuses on the utilisation of the levy. This should be done in consultation with the community, possibly through a trust or local development body in which the community, government and the corporate house in question participate. In reality, money is only a part of what it needs to help people learn new means of livelihood and sustain and rejuvenate their communities after the disorientation of shifting. Knowledgeable public-spirited individuals have to help, hence the notion of a trust.

(Source:http://www.business-standard.com/india/news/compensatingdisplaced/408723/)

Root recall

New Delhi, September 22, 2010: “Bhoomi The Earth Festival” was conceived by Navdanya long before Environment Minister Jairam Ramesh refused stage II forest clearance to Vedanta's bauxite mining in Niyamgiri Hills in Orissa. The development has indeed added to the happiness and fervour of Navdanya's first ever “Bhoomi – The Earth Festival”, a day-long event on October 2 at India International Centre. After all, the organisation committed to the issues of bio-diversity, conservation and organic farming was part of the process that finally led to this momentous decision by the government. Mobilising public opinion, getting Dongria Kondh tribals of Niyamgiri Hills to express their views openly, holding conferences, filing PILs on land issues, the outfit played its part. This national awakening, slowly becoming visible on the horizon of the nation is what the festival seeks to celebrate. For quite sometime, the organisation put together a festival that focused on organic farming but actively fighting illegal mining in the Lanjhigarh area, it realised the need to shift the focus to earth. The Universal Declaration of the Rights of Mother Earth in the UN was another valid reason to have a festival revolving around the earth. “There is a gradual reawakening to the mother earth as a living system and now we want a national awakening. We plan to do this festival for next ten years and on a bigger scale,” says Vandana Shiva, noted environmentalist behind Navdanya. The Bolivian government had initiated a process to introduce in the U.N. the Universal Declaration of the Rights of Mother Earth and it even established a Ministry for the Rights of Mother Earth. The plenary session on the ‘Rights of the Earth' will have Shiva along with the other environmentalists and country ambassadors of the Bolivian Alliance speak on the subject.

Sacred earth

“Atharva Veda, the indigenous tribal culture and poetry…there is no dearth of reminders that earth is sacred. Sri Aurobindo wrote about it, so did Rabindranath Tagore, Sarojini Naidu and Mahatma Gandhi in their poems,” tells Shiva. A book comprising poems that have earth at its core will be released during the festival. It will also have poems from the regions of Manipur and Punjab “to show that their reference point of mother earth is not pre-historic. It's live and contemporary,” she adds. The festival will showcase three films — Jhing Chik Jhing, a recently made fiction film in Marathi about a boy who grows up amidst farmers' suicide and debt in Vidarbha by Nitin Nandan, the classic Do Bigha Zamin and Niyamgiri: The Forest Speaks by Surya Dash. However, the day-long programme will kick off with an invocation to Mother Earth by rock group Ibadat. Be it the thumris of Vidya Rao, the folk music of a three-member team from Bihar or the paintings by Shakti Maira, everything, Vandana Shiva tells us, will be centred around the earth. An interesting part of the festival is the exhibition and interaction with the seed keepers. Struggling against the crisis of agricultural biodiversity, Navdanya began saving seeds and established 54 seed banks in 16 states across the country. The visitors will get to see more than 1000 varieties of rice, pulses, millet, bajra, wheat to name a few. “There will be lot of forgotten food on display like ragi, jhangora, buckwheat, jowar, bajra and many of these ingredients will be used in the organic dinner that day,” informs Shiva. Culling various known and unknown ingredients from the diverse Indian food basket, the organic dinner “Roots and Shoots” will have recipes like brahmi flavoured buttermilk, mixed tandoori platter of roots, and tubers, Nandigram “aloo” chaat, mili juli saag (cooked in clay handi), navrangi daal, mixed herbs parantha, raw papaya salad flavoured with aami adrak (a mango flavoured garlic).

(Source:http://www.thehindu.com/life-and-style/metroplus/article777183.ece)

India ready to sell Pressurised Heavy Water Reactors

Chennai, September 22, 2010: The Nuclear Power Corporation of India Limited is ready to sell Pressurised Heavy Water Reactors of 220 MWe or 540 MWe capacity to other countries, according to Atomic Energy Commission (AEC) Chairman Srikumar Banerjee. These reactors, which use natural uranium as fuel and heavy water as both moderator and coolant, offered a basket of options for countries looking for cost-competitive and proven technologies in the small- and medium-sized reactors, he said at the 54th general conference of the International Atomic Energy Agency in Vienna on Wednesday. The Indian industry, he said, was on the way to becoming a competitive supplier in the global market in special steels, large-sized forgings, control instruments, software and other nuclear components and services. India was setting up a global centre for nuclear energy partnership in Haryana's Bahadurgarh district for joint work with its partners in areas of topical interest. Dr. Banerjee, who gave an overview of the country's atomic energy programme, said work had started on four indigenous Pressurised Heavy Water Reactors of 700 MWe capacity each (two at Kakrapar in Gujarat and two at Rawatbhatta in Gujarat), and the first pour of concrete was planned for later this year. The total installed nuclear capacity now stood at 4,560 MWe from 19 operating reactors, including three that had registered an uninterrupted run of over 400 days. The construction of the fourth one (220 MWe) at Kaiga in Karnataka was over and it was ready for fuel-loading. Construction of two 1,000 MWe reactors at Koodankulam in Tamil Nadu, in cooperation with the Russian Federation, was nearing completion. The 500-MWe Prototype Fast Breeder Reactor at Kalpakkam was in an advanced stage of construction. “India,” Dr. Banerjee said, “is expanding its uranium enrichment capacity, which will meet part of the requirements of light water reactors.” This expansion was based on the already established indigenous technology. “Setting up an adequate reprocessing capability has been an important element of our closed fuel cycle-based programme.” India recently began engineering activities for setting up an integrated nuclear recycle plant, with facilities for reprocessing the spent fuel and waste management, he pointed out. The natural uranium deposits at Tummallapalle in Kadapa district of Andhra Pradesh, where a new mine was recently opened, promised to yield three times the original estimate. “India is also interested in joining hands with international partners in developing uranium mining opportunities abroad,” Mr. Banerjee said. The country was self-sufficient in production of heavy water, zirconium alloy components and other materials for the Pressurised Heavy Water Reactors. A new zirconium complex was commissioned at Pazhayakaayal near Tuticorin for producing reactor-grade zirconium sponge.

(Source:http://www.thehindu.com/news/national/article777084.ece)

Split books for steel, mines: govt

New Delhi, September 22, 2010: With the debate over sharing of 26 per cent profit from mining with people displaced by mining projects still raging, the government on Tuesday said integrated steelmakers would be asked to demarcate their mining and steel operations and keep separate accounts so that the standalone profit from mining could be ascertained. Integrated steelmakers led by state-run Steel Authority of India Ltd have opposed the profit sharing clause in the new mining bill citing impracticality. SAIL and Tata Steel, the country’s two largest steelmakers, have full captive mining operations in iron ore. The companies, however, do not maintain separate financial accounts. “They (integrated steelmakers) will have to set up separate entities for mining and steelmaking,” said PK Misra, secretary, Ministry of Steel. “People who are settled there (mining areas) will become more positive towards mining if they have a stake in the process...If there is any impact on profitability, it will only be in the short term.” Standalone mining operations are much more profitable in the country than steelmaking even as mining remains one of the more heavily taxed industries. SAIL and Tata Steel, for example, had an operating margin of only 28.74 per cent and 39.19 per cent in 2009-10. For non-captive steel companies like JSW Steel, the figure drops to 26.24 per cent. Mining companies like National Mineral Development Corporation and Sesa Goa, on the other hand, enjoyed operating margins of 84.7 per cent and 59.7 per cent respectively. While SAIL refused to comment, Tata Steel has already said it is willing to share revenue but not as a percentage of profit but as a part of overall operational costs. “Profit can be impacted by several factors. Whereas when it is treated as a part of the operating cots, it will be consistent, transparent and sustainable through the life of the mine,” said Partha Sengupta, vice-president, raw materials, Tata Steel. With the industry still largely opposed to profit sharing, the enactment of the bill itself could see some delay. “The bill still has to go through a lot of process and there are several issues that need to be thrashed out,” Misra said while addressing a seminar at industry chamber FICCI.

(Source:http://www.hindustantimes.com/Split-books-for-steel-mines-govt/Article1-603104.aspx)

New mining policy would curtail illegal mining: Steel Secy

New Delhi, September 21, 2010: The newly proposed mining policy would help curtail illegal mining and empower people settled in and around mining areas, Steel Secretary P.K. Misra said here Tuesday. 'The new mining policy, after it is enacted into law by parliament, will empower the local people and help people settled around mining areas to develop a more positive attitude towards mining,' said Misra, addressing steel producers and consumers at an interactive session on the Indian steel industry organized by FICCI. A group of ministers (GoM) headed by Finance Minister Pranab Mukherjee last week approved the draft mining bill. The mines ministry plans to introduce the bill in the winter session of Parliament to replace the Mines and Mineral Development and Regulation Act, 1957. As per the draft bill, an independent regulator, called National Mining Regulatory Authority (NMRA), will have the powers to investigate and prosecute miners involved in illegal mining. The bill also proposes to make it mandatory for miners to share 26 percent of the profits with the locals. 'The increasing awareness of tribal rights cannot be wished away. It is irreversible. The local people have to be taken into confidence in the process of land acquisition,' said Misra. Responding to the industry's concerns over environmental clearances, he said his ministry has been trying to impress upon the ministry of environment and forests to allow coal mining in 'no go' zones where substantial investments have already been made. 'We are also trying to push the state forest departments to speed up vetting of mining proposals with greater transparency so as to accord clearances within the stipulated 150 days.' A joint study by the environment and coal ministries has found that as much as 35 percent of coal mining areas across the country are located in 'no go' zones. A 'no go' zone is a densely forested area where mining cannot be allowed. Misra also urged the steel industry to address issues concerning energy and industrial water conservation, saying 'these issues have environmental ramifications and addressing them would lead to better margins for the industry.' He emphasized the need for higher value addition, accent on acquiring high technology and higher spending of research for competitive steel production.

(Source:http://sify.com/finance/new-mining-policy-would-curtail-illegal-mining-steel-secy-news-default-kjvt4caadji.html)

Orissa pushes for effective implementation of new MMDR Act

September 21, 2010: State to apprise Centre on measures to curb illegal mining. Orissa government has urged Government of India to put in place a monitoring mechanism to ensure the effective implementation of the changes proposed in the Mines and Minerals (Development and Regulation)-MMDR Act, 1957. "While we are open to all changes that are made in the MMDR Act to curb illegal mining and to make sure that the benefits of mining activities percolate to the affected people, we have sought a monitoring mechanism for the effective implementation of the new measures," a top official of the state steel and mines department told Business Standard. A Group of Ministers (GoM) headed by the Union finance minister Pranab Mukherjee has arrived at a consensus on the new MMDR Bill. It has been decided to set up an independent regulator called National Mining Regulatory Authority (NMRA) through an ordinance under the existing MMDR Act. This ordinance is likely to be issued within a month. The independent regulator will have the powers to investigate and prosecute miners involved in illegal mining. The regulator is being set up in the wake of alleged increase in illegal mining activities in different states including Orissa. The GOM had also agreed on a proposal which would make its mandatory for the miners to share 26 per cent of the profits with the locals. Orissa has hailed the move to set up an independent regulator as well the sharing of profits with the locals. Meanwhile, the Orissa government would apprise the Government of India on the measures taken by the state to rein in illegal mining activities in the aftermath of the multi million crore mining scam during a meeting of 10 states on illegal mining in New Delhi scheduled for Tuesday. The state steel and mines department has already kicked off the process to prepare maps of all the mining areas on the lines of revenue maps. The maps so prepared would be scanned and thereafter digitized to enable the state steel and mines department to have records of the operations of all the miners in the state. Global Positioning System (GPS) would be used for mapping of the different mining areas in the state. The survey of the mining areas will be taken up by the concerned officials of the department of steel and mines as well as geology. Besides, it has been decided to draw the boundaries of all the mining lease areas to ensure that a lessee cannot encroach upon the lease areas of other player. The mining maps and the digital records of the mining areas will also enable the state steel and mines department to know if a miner is illegally carrying out mining operations on forest land without the clearance of the Union ministry of environment and forests. To check the transport of illegally mined ore, it has been decided to issue transit passes to the truckers. The transit pass will have all the information on the source of ore, the name of the miner and the destination to which the ore is carried.

(Source:http://sify.com/finance/orissa-pushes-for-effective-implementation-of-new-mmdr-act-news-news-kjvc49fbdjb.html)

26% from mining firm, Re1 per day for affected tribal

New Delhi, September 21, 2010: Rahul Gandhi may be their ‘soldier in Delhi’ and the UPA government may be patting itself on the back for asking mining companies to pay 26% of their net profit to the tribal population. But the figure is deceptive, as far as tribal welfare is concerned. A deeper look into the figure and an estimate of the tribal population shows that each tribal person will get no more than Rs400 a year, or roughly Re1 a day. Not that all tribal members will be eligible for the compensation, which means the amount could be more than Rs400 for those who are eligible, but in all likelihood, the sum will be in a similar region. Sources in the government told DNA that 1,161 mining companies operate in 10 major mineral-producing states. These companies paid Rs2,191 crore as royalty in 2008-09 to the states. But though some companies and individuals in the mining business have become strong in recent years (such as the Reddys of Karnataka), the royalty rose merely by about Rs100 crore in three years. The figure in 2006-07 was Rs2,089, and in 2007-08 Rs2,102 crore. According to the registrar-general of India, the tribal population as per the 2001 census in the 10 states was 5.89 crore. Today, this number must be above 6 crore. If the companies pay an amount similar to the royalty to the tribal people, each tribal person will get Rs400 a year. The group of ministers (GoM) which cleared the proposed law last Friday envisaged that mining companies will either pay 26% of their net profit or an amount equivalent to the royalty paid to the states, whichever is higher. The number of mining companies operating in the country is 1,531 (69 are in the government sector). The majority, 1,161, operate in just 10 states. The companies are crying foul and stoutly opposing the proposed amendment to the Mining and Minerals (Development and Regulation) Act, 1957. Insiders say profit is being made either by the state-owned companies or the big private ones, and the majority of the companies are in losses.

(Source:http://www.dnaindia.com/india/report_26pct-from-mining-firm-re1-per-day-for-affected-tribal_1440855)

Tatas for mining profit share as part of costs

Kolkata, September 21, 2010: Tata Steel has suggested that the social cost envisaged in the draft mining Bill, which asks miners to share 26 per cent of profits with local people affected by their projects, be made part of operations cost, instead of profits. “Tata Steel has always believed in sharing its prosperity with the people in its neighbouring communities for the last 100 years. The proposal to include them in the earnings of the corporate entities operating mines is laudable but the company also believes that this social cost must be a part of the cost of operations and not derived as a share of profit. Profit can be impacted by several factors. Whereas when it is treated as part of the operating costs, it will be consistent, transparent and sustainable through the life of the mine,” Tata Steel raw materials vice-president Partha Sengupta said in statement. The company feels that the quantum should be decided along similar lines of royalty. “It is imperative that the utilisation of the funds be done in consultation with the community. The implementation should be done through a special development vehicle such as a Trust/Local Area Development fund administered by a local governance body consisting of the community, the government and the corporate operating in the area,” said Sengupta. Tata Steel’s views come in the wake of the ongoing discussions on the draft proposals of the MMDR Act vis-à-vis the inclusion of the development of local communities through the allotment of 26 per cent of the profit after tax on account of the annual compensation to the affected people. On Saturday, Steel Authority of India Ltd (SAIL) had raised doubts about the implementation of the proposal. “We cannot be okay with this proposal. There are practical issues that need to be resolved,” SAIL Chairman C S Verma had said.

(Source:http://www.business-standard.com/india/news/tatas-for-mining-profit-share-as-partcosts/408694/)

Keep mining PSUs out of 26% profit sharing plan, says minister

New Delhi, September 20, 2010: The steel ministry has mooted keeping state-owned mining firms out of the proposal for companies to share 26 per cent profits with those displaced by mining operations. Steel minister Vir Bhadra Singh batted for mining PSUs after a ministerial group headed by finance minister Pranab Mukherjee gave a go-ahead for Minerals and Mining Development Regulation bill. The bill that would be sent to union cabinet shortly for clearance makes it compulsory for mining companies to share 26 per cent net profits with local communities impacted by their operations. "Some special consideration has to be given to PSUs for their historical role in undertaking social obligations," Singh said on the sidelines of a seminar held by International Federation of Consulting Engineers (IFCE) in the capital. SAIL chairman CS Verma has already asked for exemption of captive mines from proposal for mandatory 26 per cent profit sharing with the displaced communities. On Monday, Verma reiterated his demand, "Captive mines should be kept out of the purview of the new legislation. We cannot sell what we mine. It is for our captive use." “With this act, there is very little chance of any investment coming in. Of course, compensation has to be paid to people whose lands are required for mining. But, is this the way to go about it,’’ countered RK Sharma, secretary general of Federation of Indian Mineral Industries (FIMI). He told Financial Chronicle that South African and Namibian models have inspired this proposal. And, both countries are now confronted with flight of capital. In addition, Sharma said the move will lead to increased illegal mining “as 26 per cent profits is too high for any one company to pay. This will also lead to other discrepancies such as fudging accounts to show cooked figures.’’ NC Mathur, a director at JSL and co-chairman of Ficci steel committee, told Financial Chronicle that the proposals would be difficult to monitor. "To impose a blanket levy of 26 per cent does not make sense. The rate for mining iron ore is not the same as bauxite. We had proposed the imposition of a local area development cess that could then be put back into development programmes as compensation.,’’ "Profit can be impacted by several factors. When social costs are treated as part of operating costs, it will be consistent, transparent and sustainable through life of the mine. It is suggested that the quantum can be decided on similar lines as royalty. It is imperative that funds utilisation be done in consultation with the community. Implementation should be done through a special development vehicle such as a trust / local area development fund administered by a local governance body consisting of the community, government and the corporates operating in the area,” Partha Sengupta, a vice–president with Tata Steel said.

(Source:http://www.mydigitalfc.com/news/keep-mining-psus-out-26-profit-sharing-plan-says-minister-540)

India’s new mining bill shocks companies

New Delhi, September 20, 2010: India’s draft mining bill which is cleared by the group of ministers last week has created a flutter among mining companies. The bill has proposed that the miners should share 26 per cent of profits with locals. Experts said the proposed clause — sharing profits with local people — should be first defined properly with advance consultation with corporate houses and industry representatives. The word ‘local’ should be defined properly, that is, whether it means only the displaced people or the populace of adjoining area or the state’s entire population. Efforts should be made to first revamp the laggard government machinery so that people can reap the benefits of compensation if they part with their land for mining or industrial projects. Theoretically, things sound good, but they turn murkier on ground. Hindalco owns a majority — over a dozen — of bauxite mines in Lohardaga, Gumla and Latehar districts of the state. The company is in expansion mode and has proposed to come up with a smelter plant in Sonahatu area of Ranchi district. Notably, a majority of private players have been allotted/earmarked mines for captive purposes, which means they are expected to use the mining products for consumption locally in respective industrial projects as promised in MoUs. There are a few players like Roongtas who sell iron ores in the market without any local value-addition. Activists fighting for the displaced have been pressing for profit-sharing in mining/industry projects for a long time. The draft mining bill, initially approved by the GoM, will need a second nod from the same body before it is sent to the Union cabinet. Thereafter, it will be placed in Parliament, probably during the winter session. The draft bill will amend the existing Mines and Mineral Development and Regulation Act, 1957 and seeks to improve the conditions of tribals, who are affected the most by mining projects.

(Source:http://www.commodityonline.com/news/India%E2%80%99s-new-mining-bill-shocks-companies-31886-3-1.html)

Govt. plans independent regulator to check illegal mining

New Delhi, September 19, 2010: In a bid to intensify its drive against illegal mining, the government plans to set up an independent sectoral regulator, possibly through an ordinance under the existing mines Act. Besides, the government is set to make the registration of miners and traders mandatory under the Mineral Conservation Development Rules (MCDR). “A ministerial panel constituted to examine the new mining legislation is of the view that we must have an independent regulatory Authority to check illegal mining,” a senior government official told PTI. Government is examining how to put a National Mining Regulatory Authority in place and this could be through an ordinance in the existing Mines and Mineral Development and Regulation Act (MMDR Act), 1957. The official said the new mining legislation which the government is working on will take time for enactment. “We are trying that this Authority is set up in advance of the proposed new MMDR Act, which may be time consuming as the Group of Ministers (GoM) constituted will meet again to give a final nod to it,” the official said, adding that the Bill will then be referred to the Cabinet. The Authority will be vested with powers to investigate and prosecute those involved in illegal mining. In another important move, the Mines Ministry is set to amend MCDR to make the registration of miners and traders mandatory to check illegal mining, the official added. He said the Ministry has asked state governments to follow Goa and Orissa patterns to compare the total production of iron ore with export figures and initiate action against the guilty if the exports exceed production. The Centre has asked all state governments to constitute high-level committees to crack down on illegal mining and intensify the drive against the menace. The issues will be discussed with the state governments in a meeting here on September 21. The GoM, headed by Finance Minister Pranab Mukherjee, has reached a consensus to give a go ahead to the draft mining bill, which seeks that miners share 26 per cent of profits with local people who get affected by their projects. The new Bill seeks to expedite the grant of mineral concessions in a transparent manner and attracting big investments in the sector, besides checking illegal mining. At present, there are not enough legal provisions for Central intervention in illegal mining in states. The magnitude of the problem is so great that as many as 42,000 cases of violation were detected in 11-mineral bearing states last year. The country produced 226 million tonnes of iron ore in the last fiscal, half of which was exported.

(Source:http://www.thehindu.com/news/national/article698745.ece)

CIL proposal for mine buy

Calcutta, September 18, 2010: Coal India has proposed a public-private partnership (PPP) model for the acquisition and development of coal mines abroad. Partha S. Bhattacharyya, chairman of CIL, said Indian companies should try to buy overseas mines on a “war footing”. “There should be PPP with people such as the Tatas or the Jindals,” he said at the MGMI seminar in Calcutta today. Bhattacharyya said some private companies had approached CIL to participate in their overseas projects. “They want us to buy some equity,” he said. The CIL chairman said many of the projects were big in size and there was scope for co-operation. “There could be more than one player if the target is $3-4 billion,” he said. CIL is part of International Coal Ventures, a special purpose vehicle constituted by five public sector companies, to acquire coal mines abroad. However, the chairman suggested that a joint venture with private companies could be done outside the purview of ICVL. Bhattacharyya said ICVL had lost out in a bid recently for $40 million. “But some more due diligence is going on,” he said. SAIL chairman C.S. Verma said there are four proposals on the table right now for ICVL. “We have made two non-binding bids. A team is being sent to evaluate one of the proposals. In another case, we are examining data,” Verma said. Out of the four, one is an operational mine while the rest are mining leases. ICVL is mainly looking at coking coal mines as steel companies such as SAIL, RINL and NMDC are part of it. CIL is also looking at thermal coal assets. “The coal industry is unable to keep pace with demand as the power sector enters an era of rapid growth,” Bhattacharyya said. Coal import is set to reach 80 million tonnes this year compared with 49 million tonnes in 2007-08. Going by this rate, India’s import could inch up to 200 million tonnes by 2015-16. That will constitute around 25 per cent of the global sea borne trade of coal and also impact prices.

(Source:http://www.telegraphindia.com/1100919/jsp/business/story_12954780.jsp)

Miners should pay cess or levy for project affected people

Kolkata, September 18, 2010: Steel Minister Virbhadra Singh today said that some sort of cess or levy should be given by miners for local people affected by projects. His comments came a day after a ministerial panel, headed by Finance Minister Pranab Mukherjee, reached a consensus to give the go-ahead to the draft mining bill, which seeks that miners share 26 per cent of profits with local people affected by projects. Asked whether he agreed with the recommendation of the ministerial panel, Singh said, "it may be 26 per cent or 20 per cent. But some sort of levy should be given (by the miners)." Singh said it was only a proposal now. It would go to the Group of Ministers again and then Union cabinet for approval. Subsequently, it would be placed in Parliament. He was talking to reporters on the sidelines of a seminar on raw materials security for the steel industry. Meanwhile, SAIL Chairman C S Verma said, "captive mines should be kept out of its purview. We cannot sell what we mine. It is for our captive use." Singh, however said, "my thinking is in line with that of the government." Expressing reservations about iron ore export, the Steel Minister said that to discourage it, duty should be charged at the rate of 20 per cent on both iron ore fines and lumps. The government has increased export duty on iron ore lumps to 15 per cent and charged 5 per cent duty on fines to improve domestic availability. On the commerce ministry supporting iron ore exports, Singh said every ministry should have a national objective. As for steel production, Singh said that the target of producing 120 million tonne steel in the country by 2012 was not unachievable. Earlier, speaking at the seminar, he said that although India produced over 220 million tonne of iron ore annually, more than half of it was exported. "This supports the growing steel production in China at the cost of stagnation in our own country." he said.

(Source:http://www.business-standard.com/india/news/miners-should-pay-cess-or-levy-for-project-affected-people/109087/on)

Tata Steel supports profit sharing vision in new mining bill

Kolkata, September 18, 2010: Tata Steel today supported sharing profits of mining with people affected by projects. "It is a move in the right direction if implemented in the right way," Tata Steel Vice-Chairman B Muthuraman said while speaking at a seminar. Muthuraman said "activities" carried out by a company around a mine should also be considered as a cost before calculating profit. A Group of Ministers, headed by Finance Minister Pranab Mukherjee, yesterday reached a consensus to give a go- ahead to the draft mining bill, which seeks that miners share 26 per cent of profits with local people who get affected by their projects. He said mineral policies should be formulated for long term such as 40-50 years. He was also in favour of large scale mining for long- term economic and environmental viability. "Companies should join for joint large-scale mining. Majority of international mining is large-scale and it needs government intervention to do this," he said.

(Source:http://www.business-standard.com/india/news/tata-steel-supports-profit-sharing-vision-in-new-mining-bill/109095/on)

Vedanta not to pull out of Orissa project

Bhubaneswar, September 17, 2010: Even as Congress leader Rahul Gandhi on Thursday termed Vedanta’s bauxite mining project in Niyamgiri as “illegal”, the Anil Agarwal-controlled company has ruled out the possibility of pulling out the Rs 4,500-crore alumina refinery project. In a 160-page reply to the show-cause notice served by the Ministry of Environment and Forests (MOEF), Vedanta denied violating any laws in connection with the refinery project and the proposed mining at Niyamgiri near Lanjigarh in Kalahandi district. Vedanta Aluminum chief operating officer Mukesh Kumar said the denial of permission for mining of bauxite in Niyamgiri hills had “nothing to do with the operation of the refinery and efforts are on to obtains other mines.” “We have already replied to the show-cause notice. The company had submitted documentary proof to answer each question raised by the ministry,” Mr Kumar added. In August, the ministry of environment and forests served the notice on the company on the basis of a report submitted by the NC Saxena panel that accused Vedanta Aluminum of violating laws pertaining to environment. The company was also accused of going ahead with expanding its alumina refinery from 1 million tonne to 6 million tonne and that of the captive power plant from 75 mw to 300 mw, without obtaining prior environmental clearance. Mr Kumar met Orissa chief secretary Bijaya Kumar Patnaik and mines secretary Manoj Ahuja to apprise them of the situation in the wake of the ministry’s denial of stage-II clearances to Niyamgiri mining project. “We would like to reiterate that no violation has been done on any account. Vedanta is a law-abiding company and we have high respect for the law of the land. Vedanta Aluminium has submitted its reply along with supporting documents,” Mr Kumar told ET. The notice also pointed out that the unregulated expansion of the refinery could cause long-term ecological and environmental impact due to emissions. Besides, the ministry observed that 11 out of 14 mines in Jharkhand supplying bauxite to the company were without environmental clearance. Vedanta said under the law, it is not mandatory to take environmental clearance if the processes are not altered. The expansion of the refinery was taken up after writing to the MOEF one and half years back. The company also stated that the Orissa Pollution Control Board has reviewed expansion activities at the project site every three months. Vedanta also denied the MOEF allegation that the former had violated the laws of the land by acquiring 26 acres of forest land. The company said it had taken permission from the MOEF and the state government. “There were no trees in the said forest land and we planted 60,000 trees in the area so far,” Mr Kumar added.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Vedanta-not-to-pull-out-of-Orissa-project/articleshow/6568819.cms)

Niyamgiri was illegal, says Rahul Gandhi

Kolkata, September 17, 2010: All India Congress Committee (AICC) general secretary Rahul Gandhi on Thursday indicated that Vedanta Aluminium’s proposed mining operation in neighboring Orissa was illegal. “Niyamgiri was illegal. The company acquired land illegally; it did not get signatures from the village panchayats before starting operations,” said Gandhi, who incidentally had visited Lanjigarh, a town adjoining the Niyamgiri hill, days after the ministry of environment and forests (MoEF) had shot down Vedanta’s mining proposal on August 24. The MoEF had denied permission to Vedanta for undertaking mining in the area on the basis that the company was in “serious violations” of the Forest Rights Act (FRA), the Environment Protection Act (EPA) and the Forest Conservation Act (FCA). “The issue is not about the fight of tribals with a big corporate, but about respect for law,” the Youth Congress president added. Gandhi, whose support for the tribal population was lauded by his mother and UPA chairperson, Sonia Gandhi, only yesterday, further said: “We can’t allow land transfer without giving dues to the poor.”

(Source:http://www.business-standard.com/india/news/niyamgiri-was-illegal-says-rahul-gandhi/408325/)

''Environment in India not a issue of lifestyle but livelihood''

New Delhi, September 16, 2010: Suggesting that there's no stopping his green crusade, Environment Minister Jairam Ramesh today said unlike in many countries, environment in India is not a lifestyle issue but a source of livelihood for crores of people who are dependent on forests and rivers. "We are not doing any obligation on anyone when we try to save our mountains, forests and rivers. It is the issue of daily livelihood of crores of people who are directly or indirectly associated with the natural resources," he said at a function here to mark the Ozone Day. Ramesh also emphasised the need to protect the country's fragile eco-system which, he said, is not a lifestyle issue but is the base of the society which is culturally and historically associated with it. Ramesh's emphasis on protection of eco-system comes in a bid to justify his actions to hold up various projects over green norms, the recent one being Navi Mumbai airport and Vedanta's mining project for which he has been drawing flak from some of his cabinet colleagues and corporate houses. He said that development and environment conservation were the two faces of the same coin and there is a need to do a balancing act to achieve both.

(Source:http://ibnlive.in.com/generalnewsfeed/news/environment-in-india-not-a-issue-of-lifestyle-but-livelihood/327621.html)

‘Different rules for irrigation, mining’

New Delhi, September 13, 2010: The Indian wildlife will have to bear the brunt of upcoming irrigation projects but not mining ones, Environment and Forests Minister Jairam Ramesh has decided. The ministry has decided to allow irrigation projects even if they lead to submergence of wildlife areas. The same rule will not apply for mining projects in close proximity of national parks and sanctuaries. “Irrigation projects are absolutely essential and cannot be put on par with mining projects,” Ramesh said, in an email response to HT. His reaction came after the Forest Advisory Committee on Friday had some reservations over impact of Brutanga Irrigation Project on Baisipalli Wildlife Sanctuary and Satkosia Tiger Reserve in Nayagarh district of Orissa. Ramesh on August 31 had given in-principle approval to the project almost a decade after it was initiated. The ministry had also stipulated studies on impact on wildlife as one of the conditions in the in-principle approval. “I categorically deny that there is any re-think on approval given to Brutanga project,” Ramesh said. But, local NGOs and wildlifers had protested against the decision saying it would impact movement of elephants across river Brutanga, on which a reservoir will be build submerging 1,500 hectares of land. The project is aimed at providing irrigation in 50,000 hectares of cultivable land in Nayagarh district. Similarly, in Polavaram Dam in Andhra Pradesh, which the minister allowed in July, wildlife in the Papi sanctuary will get submerged affecting elephant and other wildlife population. Ramesh is of the view that irrigation projects are important for nation’s food security while balancing the environmental concerns. That is the probable reason that Ramesh had set aside wildlife concerns for two important irrigation plans approved since July this year. In case of mining plans, especially in coal sector, the ministry has opted for zero tolerance to adverse impact on wildlife. Ramesh had also made it clear that no mining projects will be allowed in ‘no-go’ areas, which constitute 35 per cent of forest areas where coal mining is being done. The ministry is also looking at extending its ‘go’ and ‘no-go’ policy for other mining activities such as ores and bauxite.

(Source: http://www.hindustantimes.com/Different-rules-for-irrigation-mining/Article1-599346.aspx)

Indonesia swaps coal for infrastructure

September 13, 2010: As Asia’s major economies bound forward and their hunger for energy surges over the next decade, Indonesia is strategically positioned to take advantage as the world’s largest exporter of coal. It is also neatly placed geographically, on the doorsteps of China and India. Mr Rudi Vann a leading coal analyst at Wood Mackenzie told Beyondbrics that he expects Indonesian coal production to rise nearly 90% to 480 million tonnes by 2020. By striking deals to sell it in exchange for infrastructure financing, Indonesia is using the resource to fix its own crumbling roads, ports, bridges and its power plants too. As you might expect, the competition to secure Indonesian coal is being led by China and India. Companies from the two countries signed a series of deals in recent months to finance billions of dollars in Indonesian infrastructure projects in exchange for thermal coal. The deals are reminiscent of the controversial minerals-for-infrastructure transactions that China has struck across Africa to secure supplies of that continent’s resources. Indonesia is in desperate need of capital and has set the ambitious target of attracting USD 160 billion in foreign investment over the next few years. The most recent coal deal was in August, when Indian conglomerate Adani said it would spend USD 1.6 billion on a railway line and coal terminal in southern Sumatra. KPMG estimates India’s coal shortfall will reach 189 tonnes a year by 2015. Domestic supplies could soon be limited by tougher environmental regulations planned by Environment Minister Jairam Ramesh, who recently said a third of India’s coal reserves are in areas off limits to mining companies. Chinese companies, already heavily invested in Indonesian coal mines, are looking for more acquisitions, but have also inked deals to build power plants. Vann noted that Indonesia has already exported more coal to China in the first half of this year than all of 2009. The country’s production of thermal coal will likely rise by around seven per cent to 280 million tonnes in 2010, led by purchases from China, India, South Korea, Japan and Taiwan, the Indonesian Coal Mining Association said. On top of flourishing exports, domestic Indonesian demand will also rise around eight per cent a year as it adds 10,000 megawatts of electricity-generation capacity from coal-fired power plants by 2016.

(Source:http://www.steelguru.com/raw_material_news/Indonesia_swaps_coal_for_infrastructure/165040.html)

Miners may’ve to share revenues with displaced

New Delhi, September 13, 2010: The government is likely to make it mandatory for mining companies to hand over a part of their revenues and make annual payments to land losers, bringing compensation rules in this sector in line with a policy followed by the Haryana government which has won the backing of Congress president Sonia Gandhi. But in a sop to companies, which have been unenthusiastic about earlier plans for profit-sharing, the ministry of mines is also actively considering scrapping rules under which state government-owned mining companies are favoured when mines are allocated. The revenue sharing model combined with annual payments is likely to find its way into a proposed legislation setting the rules for investment in minerals, according to a government official involved in the drafting process. The legislation, known as the Mines and Mineral (Development and Regulation) Bill is being written under the supervision of a group of senior ministers. The bill, which has been in the works for a while, has become extremely high-profile in the wake of the government’s decision to deny permission to mine bauxite to Anil Agarwal’s Vedanta in Orissa’s Niyamgiri. While that decision was prompted by the project’s alleged impact on the environment, wider concerns about the impact of mining on local populations have come into the limelight. An earlier version of the bill had suggested that miners should share profits and issue equity to those displaced by mining. But some ministers involved in the drafting process feel that companies may be economical with the truth as far as data on profit are concerned. “Issuing shares and profit sharing are not foolproof and may result in a denial of benefits to project-affected persons. Sharing a certain percentage (that can be finalised later) of sales realisation will prevent misreporting of profit figures,” said a mines ministry official. Under rules that are currently in place, the state government collects royalty, which is a fixed percentage of sales. Both profit and revenue sharing could be on offer with the beneficiaries receiving the higher of the two. “Affected people could get the higher of the 26% profit or the revenue share. The percentage (of revenue share) could be worked out later,” the official said.

Congress backing

The government’s proposal has also received the backing of the Congress party that has thrown its weight behind the drive to maximise benefits for project-affected families, especially in the mineral-rich but backward areas of the country. Many such areas are inhabited by the scheduled tribes (ST), which have the highest percentage of people living below the poverty line. An influential Congress leader said compensation by issuing free shares alone was unrealistic because of the socio-economic profile of tribal communities.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Miners-mayve-to-share-revenues-with-displaced/articleshow/6543203.cms)

Cabinet urged to decide on classification of coal mines

New Delhi, September 13, 2010: The Prime Minister's Office (PMO)-appointed panel is understood to have sought the intervention of the Union Cabinet to take a call on classification of coal bearing areas in the country as no mining zones and providing for alternative coal blocks to those who have been affected by this new “no-go zones” policy. The committee, headed by Planning Commission member (Energy) B.K. Chaturvedi, feels that the Cabinet Committee on Economic Affairs (CCEA) should decide on the row between the Coal and Environment Ministries over classification of nearly half of coal-bearing areas in the country as no-mining zones. It was felt that serious efforts were needed quickly to clear the blocks from the environment angle. The issue of “Go or No Go” policy needs to be settled quickly. The committee comprised senior officials from the Coal, Power, Law and Environment Ministries. Discussions on the issue were held by the PMO during the last two months and it was felt that in some areas companies have already made huge investments, especially those awarded the Ultra Mega Power Projects, and something needs to be done to sort out this mess. In July, a high-level inter-ministerial panel recommended that mining should be allowed in 77 coal blocks that were made a ‘no-go' affair by the Environment Ministry. Now, 126 blocks are labelled as ‘no-go' areas, down from 203 earlier. However, in order for a company to avail itself of an alternate mining location, the panel has stipulated that the block falling in a “no-go” zone should have been awarded prior to June, 2010. For the purpose of fresh allocation, the working group decided to classify the affected firms into two groups. The companies which have made a “substantial investment” in their projects are in category A, while the others are in group B. In case such companies do not win in the bidding process, they will be offered the block, along with the successful bidder, on terms offered by the successful bidder, the panel has stated.

(Source:http://www.thehindu.com/news/national/article627688.ece)

Vedanta suffers another green blow in Orissa

Bhubaneswar, September 10, 2010: Environmental issues have again affected Vedanta Resources, with its power producing arm, Sterlite Energy, forced to temporarily shut its power plant at Jharsuguda in Orissa, following protests by residents who alleged that the unit had caused air pollution. The 600 megawatt power plant, which was formally commissioned by chief minister Naveen Patnaik recently on August 21, developed a technical snag soon after, sending fly ash – a by-product in power generation – into the air and causing problems to people living nearby. When the problem, which started a week ago, persisted, some 300 villagers residing near the plant, protested by blocking the road leading to the plant from Jharsuguda. Jharsuguda district collector SN Mishra immediately intervened by asking plant authorities to shut down the operation of the plant for the time being. “I have asked the plant authorities to shut down the plant, take corrective measures and report within 48 hours,” Mr Mishra told reporters. The plant authorities have been accused of not running the electrostatic precipitators — a device used to remove liquid droplets or solid particles from a gas in which they are suspended, preventing emission of fly ash into the air. Sterlite Energy Jharsuguda chief operating officer Abhijit Padhi admitted that due to a technical snag in the precipitators, the fly ash content went high. “The company is taking proactive steps to control the situation by shutting down the power plant for the time being to correct the technical snag,” he added. The latest development may extend woes for the Anil Agarwal-controlled Vedanta Resources which has been forced to buy bauxite from outside after the central government denied mining permission to Vedanta’s joint venture partner Orissa Mining Corp, following protests from environmentalists. The Jharsuguda unit, is an independent power producer, that generates power for use by the state grid. It is located in the same premises which houses Vedanta Resources 1,215-mw captive power plant that is used to make aluminium. Once the IPP is fully operational, Sterlite Energy Jharsuguda will be the largest single-location power station in the country with a total production capacity of 3,615 mw. The total power produced from the Sterlite Energy’s first unit will be given to Orissa state grid. The tariff is yet to be fixed.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/energy/oil--gas/Vedanta-suffers-another-green-blow-in-Orissa/articleshow/6527398.cms)

Environmental disaster awaits city, Vidarbha

Nagpur, September 10, 2010: An environmental disaster is awaiting Vidarbha due to too many power plants coming up in the region. While the state government always thinks of western Maharashtra, Marathwada or Konkan for projects like car plants, it zeroes in on Vidarbha for power plants. The region has four Mahagencorun power plants having 4,775 MW capacity plus a private sector plant of 275 MW. Work is going on power plants having 10,000 MW capacity. The government has signed MoUs for 49 plants having 35,000 MW capacity. Mahagenco and MSEDCL want to add another 6,000 MW. Of this, a fourth or over 11,000 MW would be in Nagpur district alone. The power plants are already in conflict with forest areas around them. They will make many cities uninhabitable once they start. Chandrapur is only the beginning. Asingle 2,340 MW power plant in its vicinity has made the city the fourth of around 7,000 MW in the district. Vidarbha Environmental Action Group has estimated that if all 49 power plants come up, they would require 1,464 million cubic metre (mm3) water. The storage capacity of major reservoirs of Vidarbha is 4,822 mm3 or just under a third of entire storage. These power plants will also need 80,000 hectares land. The government does not bother about even the drinking water needs of Vidarbhaites. Dolbee Mining and Power Ltd had sought a reservation of 55 mm3 from Kanhan river for its 1,320 MW plant near Saoner. In spite of knowing that Nagpur's requirement of 200 mm3 can not be met without Kanhan, the government has given an in principle approval to it.

(Source:http://timesofindia.indiatimes.com/city/nagpur/Environmental-disaster-awaits-city-Vidarbha/articleshow/6528233.cms)

India is safe, PC tells Naxal-wary investors

Mumbai, September 10, 2010: Home minister P Chidambaram has said he is confident that the government will be able to regain control of vast swathes of areas controlled by Naxalites in the country, in an attempt to assuage investors worried about the threat posed by these groups to internal security. In an unusual meeting with institutional investors—both foreign and local—Mr Chidambaram told them that the country is now better equipped to combat insurgency and terrorism, than it was before the terror attack in Mumbai in 2008. “I am absolutely confident that if we observe patience, and continue to show determination and resoluteness, we will be able to gain in areas that are now dominated by the Naxals, and hopefully they will come to the negotiating table.” It is not often that the home minister chooses to address skittish investors, but with Naxalites gaining dominance in several districts of the country, especially in the eastern belt, investors have voiced their concerns relating to investments made by both foreign and local companies in mineral-rich states. But Mr Chidambaram, who had two stints as finance minister during which he had met several foreign investors both in India and abroad, responded to this by saying there should not be more worries about investing in India than investing in the US. “No one can say that no terrorist attack will ever take place. Yet, I think we are now better prepared, better equipped and have the capacity to forestall most terrorist attacks. Should there be an attack, our capacity to retaliate has grown considerably, the response will be swift and decisive. And wearing another hat, I can say that investing in Indian securities seems a better idea than investing in US securities,” he told the gathering of fund managers at a two-day investor conference hosted by ICICI Securities, the investment banking arm of ICICI Bank. Foreign portfolio investors have invested over $12 billion this year betting on the world’s second fastest-growing economy. India’s economy is projected to grow over 8.5% this fiscal. Investors, both local and foreign, have been worried about the threat posed to internal security by Maoists. Last month, Prime Minister Manmohan Singh had appealed to Naxals to shun violence and to join hands with the government to ensure accelerated social and economic growth. Of the 197 districts affected by Naxal violence, the government is now planning to implement major schemes in 60 of the worst-affected districts. The violence has been predominantly in states such as Chhattisgarh, where Naxals have targeted policemen. Chhattisgarh, Orissa and Jharkhand have attracted investments from large corporates, led by the Tatas, thanks to rich iron ore, bauxite and coal reserves, but their operations have been hit in some of these states due to violence. Mr Chidambaram had recently said the battle against Maoists would be long drawn out, and it would take at least two to three years to show results. “We have to hold our nerves and remain on course,” he had said. Over 10,000 civilians have been killed so far in Naxalite violence during the last five years. “The conflict will be a long-drawn one... patience is the key. Casualties will be suffered, mistakes will be made. But if parliamentary democracy has to be defended, we have to put down the so-called armed liberation struggle,” he said on Thursday. Mr Chidambaram pointed out that fewer security forces were killed in the operations against Naxalites in 2010 so far, compared to the same period last year. He also pointed that there was good economic activity in the states with strong Naxalite presence, but admitted that people in those states were living in fear. The government plans to address this issue by upgrading 400 police stations in these areas at a cost of Rs 2 crore per police station. “Our capacity to deal with terrorism is much better than what it was before 26/11 (referring to the Mumbai blasts). It will be better the next year, and even better the next year.” The home minister mentioned the three ambitious security-related projects that were underway at the moment. The Crime and Criminal Tracking Network System aims to connect every police station in the country, and the NatGrid will network 21 databases in the country. The National Counter Terrorism Centre is right now in the conceptual stage, but Mr Chidambaram assured that work on it will begin soon. “The US took 36 months to put in place an NCTC after the go-ahead was given. We hope to do it in 12 months after the approval is given,” he said. In response to a question on companies setting up operations in mineral-rich but Naxal-infested states, Mr Chidambaram said more than security, the problem is about displacement of the local people, and environmental issues. Last month, the government had rejected London-based metal and mining firm Vedanta’s bid to mine bauxite in the Niyamgiri hxills in Orissa. “Where extraction of minerals will irreversibly destroy the environment, I am afraid, we will have to deny ourselves those minerals. Hopefully, technology will evolve and we can extract the minerals without destroying the environment. The other problem is displacement leading to loss of livelihood. Indian industry is not yet alive to the dimension of this problem. Fifty years ago, you could displace thousands of people and build a Neyveli in Tamil Nadu; 100 years ago, the Tatas could build a Jamshedpur. But today, there is greater consciousness and awareness among people. Industries wishing to extract minerals must show greater sensitivity to the issue of displacement and loss of livelihood.”

(Source:http://economictimes.indiatimes.com/news/politics/nation/India-is-safe-PC-tells-Naxal-wary-investors/articleshow/6527713.cms)

Sonia sets line on industry - Development model with balanced approach

New Delhi, September 9, 2010: Congress president Sonia Gandhi today emphatically asked the government to strike a balance between industrial development and environment protection and suggested a comprehensive rehabilitation scheme for landlosers. Sonia’s assertion is the most categorical yet on the subject and crystallises the stand voiced by Rahul Gandhi during an Orissa rally where he declared himself a “sipahi” of tribal interests. Earlier this week, Prime Minister Manmohan Singh had spoken of a balanced approach and that industry must recognise environment concerns but added that “we cannot solve environmental problems by perpetuating poverty. We need a balance between environmental concerns and poverty eradication”. The Congress president’s clarification comes also at a time various ministries are locked in a stand-off with the environment ministry, headed by Jairam Ramesh, for raising objections to projects such as an airport on the outskirts of Mumbai and industrial ventures elsewhere. Dedicating the NTPC’s National Capital Thermal Power Project, Dadri, Stage-II, to the nation here today, the Congress chief warned policy-makers against laying abnormal stress on industrial growth at the cost of agriculture. Her approach suggests that the Congress wants to amplify its projection of itself as the champion of the deprived and the dispossessed, although the government is keen on a much greater push for industry to reduce the country’s reliance on agriculture which has its own limitations. Many in the Congress viewed Sonia’s speech as a significant departure, much like her emphasis before 2004 on the welfare state, following which Manmohan Singh spoke of economic reforms with a human face. The debate within the Congress on the contours of “Manmohanomics” that acquired a particular dimension in the P.V. Narasimha Rao regime finally gave birth to a nuanced economic philosophy which put a brake on blanket divestment and created space for huge social sector expenditure. Senior Congress leaders feel Sonia’s clarification will inject a sense of purpose in the government which is sitting on the Land Acquisition Amendment Bill for so long. The frequent conflicts of various ministers with Ramesh on development projects and airports should also come to an end after Sonia’s signal. Sonia made it clear that she was not against industry but stressed that all concerns should be accommodated while fine-tuning a development model. On industry, Sonia said: “We definitely need to generate more power from different sources to meet the growing demands from our farmers, our factories and our people. Economic growth is built on greater electricity production and consumption. At the same time, we must protect the environment to ensure sustainable development. In whatever we do, we must not forget that our lush forests and mountains, majestic rivers and all other water sources, and clean air have sustained and nurtured us for millennia. We have a responsibility to preserve them for the coming generations.” Sonia’s signposts, along with the strong endorsement on August 26 by Rahul of the brake on the Vedanta mining project in Orissa, indicate that the government will not clear in a hurry any project that stirs environment concerns. Sonia also touched upon one of the most contentious issues vexing policymakers — land acquisition. “I would also like to say a few words on land acquisition. New industry and new infrastructure cannot be built without acquiring land. This is obvious. But land acquisition must be done in a manner that does not result in the loss of large tracts of fertile and productive agricultural land so indispensable to cultivate foodgrain needed to feed our people. And if farmers are deprived of their land-based livelihood, they must be provided with adequate compensation and alternative occupation. Some states like Haryana have progressive legislation in this regard. Other states would do well to emulate it.” Sonia has not slammed the door shut on land acquisition but, given the reality of lack of non-fertile land in some states, such as in Bengal, she seems to be pinning hope on job-oriented rehabilitation schemes to persuade people to give up land. The government plans to table the land acquisition amendment bill in the next session of Parliament which will coincide with the run-up to elections in Bengal. Some of the earlier provisions in the bill had been opposed by Mamata Banerjee. Sonia used Manmohan’s trophy theme — nuclear energy — to drive home her point. “Our future requirements necessitate that we pay much more attention to clean and renewable sources of energy. Now that Parliament has passed the Civil Nuclear Liability Bill, India is in a position to invest in nuclear power to help meet its growing needs. I understand that NTPC is gearing up to enter the field of nuclear energy. It is also taking steps to expand the utilisation of wind and solar energy on a larger scale. This is a tribute to its culture of innovation and performance.”

(Source:http://www.telegraphindia.com/1100910/jsp/frontpage/story_12919862.jsp)

'Niyamgiri, Cairn unrelated'

New Delhi, September 8, 2010: Congress general secretary Digvijay Singh has said the environment ministry’s decision to disallow Vedanta to mine bauxite in Orissa will have no bearing on the company’s takeover bid for Cairn India, which awaits government approval. There is no question of the party or the government adopting an ‘anti-Vedanta stand’ and the two issues were unrelated, Mr Singh said. “Why would we be vindictive to Vedanta or any other corporate for that matter? Congress is not a vindictive party. Mining in Niyamgiri would have upset sentiments of the locals since the mountains are considered holy. There are no environment and tribal issues related to the Cairn-Vedanta deal,” he said. The environment ministry’s decision last month to prevent Vedanta from mining in Niyamgiri has fuelled speculation that the government may adopt a hard-line position on the London headquartered company’s $9-billion takeover bid of Cairn India. The lukewarm response of the petroleum ministry, which has asked Cairn Energy to seek fresh approvals for the transaction, had strengthened the speculation. Mr Singh said Congress was putting its weight behind a proposal that would empower tribals to seek ownership of minerals in their areas. Mr Singh said the party wants the new mining bill, being drafted by a ministerial group, to insist that tribal communities, who figure disproportionately among the poorest, will have the first right to resources in areas where they reside and also have a say on approvals granted to mining projects. “We are of the opinion that management and control of mineral resources should rest with tribals and extension of panchayats to scheduled areas be made part of the new bill,” Mr Singh said. The draft of Mines and Minerals (Development and Regulation) Bill, or the MMDR Bill, 2010, has proposed that provisions of Fifth or Sixth Schedule of the Constitution will be invoked for grant of mineral concessions. The Fifth and Sixth Schedules stipulate that mining in tribal areas be done only by government companies after approval by tribal panchayats or co-operative societies formed in the districts directly or indirectly affected by the mining projects. “There shouldn’t be a bar on private companies from mining in tribal areas but the measures should ensure greater empowerment of India’s tribal population,” said Mr Singh.

(Source:http://economictimes.indiatimes.com/news/politics/nation/Niyamgiri-Cairn-unrelated/articleshow/6515899.cms)

Korba coal making it to black market?

Korba, September 8, 2010: A vast grey moon-like crater lies where there was once lush green forest. In this corner of north Chhattisgarh's Korba district, seven years ago, a company acquired rights to extract coal as raw material for the expansion of its sponge iron plant. The company emptied out coal from one sq km in Chotia block, but did not expand its plant. So where did the coal go?

As CBI probes allegations that the company, Prakash Industries Ltd, sold in black coal worth hundreds of crores of rupees, TOI has accessed documents that reveal not just a series of violations by the company, but also raise concern over the lack of government scrutiny in the allocation of coal blocks. In fact, what Prakash Industries has done could well be the modus operandi for a number of other such units that have brazenly violated rules and mined coal which could be worth crores of rupees in the market. All attempts to contact the company's corporate office in New Delhi, even emailed queries, did not get a response. What makes Prakash Industries' case significant is that the Chotia block is the only operational mine in Hasdeo Arand, a dense forest recently classified by the ministry of environment and forest as a 'no go' area, putting it out of bounds for mining, triggering an inter-ministerial war in New Delhi. Long before the current clampdown, Prakash Industries was the first company to acquire a mining lease in the forest. In 2003, it was allocated Chotia block to extract coal exclusively for use in its proposed 8 lakh tonne sponge iron plant in the neighbouring district of Janjgir Champa. The company's plant, which then had a capacity of 4 lakh tonnes, was to be doubled by 2004. But, over the next five years, the capacity stayed stagnant. As per the records at the district industry office, the company added 2 lakh tonnes as late as December 2009, still short of the required 8 lakh tonnes. While it failed to expand capacity, the company rapidly accelerated coal extraction. The approved mining plan mandated the company to extract 10 lakh tonnes of coal per annum, starting with 5.5 lakh in the first year, gradually scaling it up, to reach the 10-lakh mark in 20 years. But the company's own despatch statements show it exceeded approved targets, mining nine lakh tonnes in the second year, violating the plan. As the company over-extracted coal and under-produced sponge iron, a lucrative market opened up. On average, 1.2 tonnes of grade D coal is needed to produce one tonne of sponge iron. A four lakh tonne plant is likely to use 4.8 lakh tonnes of coal a year. Minus this from the nine lakh tonnes of coal the company mined every year, and it leaves at least 12-15 lakh tonnes of coal that went unused till 2009. The price of one tonne of coal is Rs 1,500. A back-of-the-envelope calculation shows this unused coal was worth at least Rs 200 crore, a conservative estimate, based on the production figures declared by the company. Where did the unused coal go? It's evident the company sold it in black," said Mohammad Akbar, opposition MLA, who raised the case during the last assembly session, questioning why the state government was supporting the company's bid for more coal blocks. Since last year, the circle of investigations against the company has expanded, drawing in diverse agencies including the CBI, the state excise and even the ministry of steel. But this has not impeded the acquisition of more coal blocks by the company, one in MP, three in Chhattisgarh. Recently, in a letter to Chhattisgarh CM Raman Singh, environment minister Jairam Ramesh called Hasdeo Arand "an unfragmented forest of great biodiversity, one of its only kind left in the country". In May, Union environment ministry marked Hasdeo Arand as a 'no go' area, to protect it from being shaved off for coal mining. This upset not just Chhattisgarh government, but three Union ministries of coal, steel and power sought the PM's intervention to reverse MoEF's embargo. Their argument: companies need urgent access to coal to produce power and steel. While industry's need for coal can't be disputed, the case of Chotia illustrates that giving a company access to mines is no guarantee of production, especially in absence of government scrutiny. This, perhaps, should introduce caution in the rush to allot coal blocks in prime forest areas.

(Source: http://timesofindia.indiatimes.com/india/Korba-coal-making-it-to-black-market/articleshow/6515689.cms)

'Growth can be green'

New Delhi, September 07, 2010: Prime Minister Manmohan Singh will call a meeting of the ministers of environment and forests, coal, mining, roads and other infrastructure ministries to evolve a unified approach towards balancing environmental concerns with requirements for growth. "While we are sensitive to issues relating to environment, we can't return to situation similar to license-permit raj," the PM said during the interaction with editors. Environment clearances have come in way of several projects in power, roads, mining and aviation, leading to complaints to the Prime Minister. In the most recent controversy, the proposal for a new airport in Mumbai is hanging in balance, as environment clearances have not come by. The PM had promised to intervene to resolve the stalemate. "We will have to find environment friendly ways of generating more wealth," the PM said. Singh recalled the collapse of the Wall Street responding to a suggestion for more liberalization. "We have to have our own models of liberalisation. We can't follow the Wall Street model or City of London model blindly," the PM said, defending his government's calibrated approach towards opening up various sectors of the economy.

(Source:http://www.hindustantimes.com/Growth-can-be-green/Article1-596917.aspx)

Mining projects in go areas need green nod

New Delhi, September 07, 2010: The Environment Ministry has said that its clearance will have to be taken for mining projects in certain areas. The ministry has said that the exercise to identify go and no-go areas of the coal-bearing land was only indicative in nature and was not legally enforceable. Replying to Power Ministry's proposal for three coal blocks — Meenakshi, Meenakshi B and Dip Side of Meenakshi, a ministry official said: "In this connection I am further directed to inform that identification of Category A (go) and category B (no-go) areas for coal blocks in the country has only indicative value and has no legal enforcement." The ministry official in a communication to the Power Minister also said the exercise of categorisation Category A and B areas is in no way substitute to the statutory powers conferred to the Forest Advisory Committee (FAC) under the Forest Conservation (FC) Act 1980. For every project in forestland, approval of FAC is mandatory. "The provisions under the Act do not provide freedom to communicate the acceptance of any forest land for use of non-forestry purposes without passing through the statutory process," the official argued. This has put a big question mark on the Environment Ministry's move to demarcate go and no-go areas, which if implemented could imply an outright loss of 600 million tonnes of coal production annually. The Power Ministry had requested the Environment Ministry to consider enlisting the coal earmarked for the Orissa Ultra Mega Power Project in the go area. As per the joint exercise carried out by the Environment and Coal ministries, Meenakshi A was in the go area, Meenakshi B in no -go area while the third one was on the borderline. The view of the ministry has settled the question that the categorisation is just indicative and does not mean automatic clearance for mining projects in go areas. It can result in more trouble for Coal Minister Sriprakash Jaiswal, who has opposed the categorisation.

(Source:http://www.hindustantimes.com/Mining-projects-in-go-areas-need-green-nod/Article1-596920.aspx)

Manmohan looks for a middle path on climate

New Delhi, September 6, 2010: The government's new-found zeal on environment protection -- led by Jairam Ramesh with the backing of Rahul Gandhi -- was sought to be tempered by Prime Minister Manmohan Singh on Monday when he advocated a middle path by saying that while environmental concerns were important and needed to be heeded, that should not lead to "perpetuation of poverty" or a return to the "licence-permit raj". In a sense, this also showed up some differences in the government (despite Singh's strenuous denial of any) on the issue. The PM said that while "environmental concerns have come to stay", it should not be at the cost of growth. This, in the backdrop of some high-profile measures, including the ban on Vedanta's bauxite mines, in the name of environment could indicate that Singh is in favour of a more nuanced approach to the issue. Jairam Ramesh, in a move apparently coordinated by the party leadership, had banned mining by Vedanta to extract bauxite from the Niyamgiri hills in Orissa, ostensibly for being in contravention of the Forest Rights Act that seeks to give forest rights to forest dwellers. Within days Congress general secretary Rahul Gandhi had reached Niyamgiri to claim political ownership over the decision. But, on Monday the PM asserted his contrasting vision stating that "tribal and ecological considerations must be there but that does not mean we should not exploit resources for developing their (tribals') lot." On any other context it would have sounded like a call for balancing the requirements of industrial growth with tribal welfare and not letting ad-hocism take over, but days after Rahul Gandhi claimed to be the voice of tribals as a follow up to Ramesh's hard-selling of UPA's green intentions, the PM's statements sounded like a differing signal. Not just this, the PM announced he would soon call a meeting of the Home, Roadways, Petroleum, Coal and Environment ministers to hammer out the golden middle path. These ministers have often been at loggerheads with Ramesh on what is often called his "environmental evangilism." Singh had earlier stepped in when Ramesh had attempted to restrict coal mining in rich forested areas as well as stop the building of large dams on a tributary of Ganga in Uttarakhand. While his intervention had made Ramesh to step back on the coal blocks issue, support from the party leadership saw him prevail over the power ministry's insistence of continuing work on an ongoing dam.

(Source:http://timesofindia.indiatimes.com/india/Manmohan-looks-for-a-middle-path-on-climate/articleshow/6509454.cms)

Industry must recognise environmental concerns: Manmohan Singh

New Delhi, September 6, 2010: Prime Minister Manmohan Singh today told the Indian industry to recognise that environmental concerns have come to stay although this has to be balanced with developmental needs. A meeting of ministers for environment, coal, petroleum, surface transport and others would be shortly called to discuss issues of environment and development, he told a group of editors. "Environmental concerns have come to stay. Our industry must recognise that. At the same time we cannot solve environmental problems by perpetuating poverty," Singh said. He refused to talk about specific projects like that of Vedanta bauxite mining in Orissa which has been refused permission by the Union environment ministry.

(Source:http://www.dnaindia.com/india/report_industry-must-recognise-environmental-concerns-manmohan-singh_1434199)

Coal blocks in no go mining areas may supply to UMPPs

September 6, 2010: Indian Express reported that the Prime Minister's Office may direct some coal blocks in no go mining regions to supply coal to ultra mega power projects which continue to be delayed. Two of the power ministry’s pet projects worth almost 8,000 MW have been prevented from entering the bidding process as they await promised fuel supply which is now under the Ministry of Environment and Forest’s no go region. The PMO has held meetings with the ministries of power, coal and environment and forests to determine exactly how to resolve MoEF’s intention to block mining companies from digging in areas with dense forestation and wild life. The power ministry indicated that talks have moved along since their last meeting before the PMO and Planning Commission, which may lead to fuel access for their UMPPs. Mr P Umashankar power secretary said that "We are working on them. Some coal blocks could be accommodated through boundary adjustment. Some could go from no go to go areas. We will keep environment concerns in mind and manage both capacity addition and environment for the development of the power sector." A ministry official under a condition of anonymity said that in all, the impact of no go categorization could result in a loss of 162 million tonnes in the next 5 years and could touch 500 to 600 tonnes in the next 10 to 15 years. He added that "Around 53 new power projects with a capacity of around 40,000 to 45,000 MW will be affected with this exercise which will not only derail our capacity addition program, but will also adversely affect the growth momentum of the country." It should be noted that the power ministry has been citing environmental clearance issues for project delays throughout the 11th five year plan. The capacity addition target for the period between 2008 and 2012 was about 78,700 MW before the ministry announced slippages and a drop in their target to about 62,000 MW. Because of project delays, including those off BHEL caused by equipment supply problems and local infrastructure hiccups, experts believe the ministry may end up falling short of its 62,000 MW target by as much as 8,000 MW. The power ministry has further extended the date of submission of initial bids for the Chhattisgarh UMPP, as the coal mines allotted for the project fall under the no go area and await environment clearance. Coal block allocated for a similar project in Orissa is also awaiting environment clearance. Next in line is a UMPP in Tamil Nadu which will use imported coal.

(Source:http://www.steelguru.com/raw_material_news/Coal_blocks_in_no_go_mining_areas_may_supply_to_UMPPs/164060.html)

Coal ministry seeks PMO push for environ nods for mines

New Delhi, September 6, 2010: The coal ministry has requested the Prime Minister’s Office (PMO) to resolve the environment clearance issue for coal mines under public sector Coal India Ltd (CIL) at the earliest. The largest mining company in the world is going for its initial public offer in October 18. The ministry fears that environment clearance hurdles may impact the CIL floatation. “We have to resolve the issue at the earliest as we are heading for road shows where we will inform our investors about the company’s business prospects. If the PMO resolves the environment clearance issue within this month, it will help CIL’s IPO”, said a source in the ministry. From September 6, a group of CIL officials headed by additional secretary of the ministry, Alok Perti,will start the road show in 10 major investor destinations in Europe, US, Australia and Singapore. The CIL issue is slated to be the biggest by any corporate in India that will raise between Rs10,000 crore and Rs12,000 crore. The ministry of environment and forest (MoEF) had classified 44% of the mining area under CIL as a ‘no-go’ area, where no mining activity can be undertaken. After the announcement of the company’s IPO, there have been several meetings between the ministries of environment, coal and PMO. A group of ministers headed by finance minister Pranab Mukherjee is in charge of resolving the issue. At a May 21 meeting, presided over by TKA Nair, principal secretary to the Prime Minister, officials of MoEF were told that due to their classification of the ‘no go’ area, 619 million tonne per annum of coal production capacity (about 412 million tonne per annum from CIL-owned areas and 207 million tonne per annum from captive blocks) was getting affected, which was not acceptable to the PMO. A major part of these no-go areas fall in the Hasdeo Arnad Coalfield. Even after the intervention of the PMO, the MoEF has continued with its tough stance on the issue of no-go areas.

(Source:http://www.dnaindia.com/money/comment_coal-ministry-seeks-pmo-push-for-environ-nods-for-mines_1433955)

Coal ministry ups ante

New Delhi, September 5, 2010: The coal ministry has sought a direction from the cabinet committee on infrastructure for clearance by the environment ministry to all blocks in forest areas meant for power and steel plants irrespective of whether they are in the “go” or “no-go” areas. In a note to the cabinet panel, the ministry says “it is felt that only the cases of pristine forests or wildlife sanctuaries should be considered where coal mining may not be allowed”. The note is likely to intensify the tussle between the coal ministry and the environment ministry, which had classified blocks in forest regions into “go” and “no-go” areas and had withheld permission to those in the “no-go” region. On the basis of the ministry’s latest proposal, only 10 per cent of the forests in the coal-bearing regions are out of bounds. If the coal ministry’s plea — which seems to have the support of its counterparts in power and steel — is accepted, it will almost end the “go” and “no-go” classification, or at least keep past projects out of its purview. Negotiations are now on to bring more areas in the “go” category, but ministries are worried over “go” area projects getting delayed because of roadblocks posed by the environment ministry. The coal ministry, in the note, says, “The major reason for constraint in coal production has been delays in obtaining prospective and mining leases and other approvals from the state governments and on account of delays in securing environmental and forest clearance.” Forest clearances for mines are given in two phases — in-principle and final approvals. It takes about four-and-a-half years to get in-principle approval from the state government, and about 2 years for the Centre’s environment clearance. The final clearance takes longer — 5.4 years from states and 1.6 years from the Centre. According to rules, forest clearance by the Union government should take just 150 days in the case of new projects and 120 days in the case of projects whose mining lease is being renewed. The coal ministry’s fears that the ban on mining in areas marked as “no-go” will slow down development. There are 155 coal blocks in the “no-go” areas meant to feed as many projects, including 10 major power plants. “Debarring 155 coal blocks with a production potential of 660 million tonnes will adversely affect the projections of power generation or economic growth in the country that are being proposed,” officials said. The battle between the environment ministry and the coal ministry is not expected to end soon as both lobbies are believed to be strong. Officials said the government would have to come up with a balancing act that would satisfy both the parties. Some recommend that stringent norms that will be reviewed at phases should be brought in. The mining areas will be split into parcels, each catering to the requirements of 2-3 years. Once a parcel has been mined, the area will be reforested.

(Source:http://www.telegraphindia.com/1100906/jsp/business/story_12901371.jsp)

Meghalaya mulls rehab of little miners

Shillong, September 5, 2010: The Meghalaya government is working on a rehabilitation package to help the children working under hazardous situations in the coal mines of Jaintia Hills, following a direction from the National Human Rights Commission. The state commissioner and secretary of mining and geology, Arindam Som, today said following the commission’s direction on August 13, a high-level meeting will be held next week to be convened by chief secretary W.M.S. Pariat to discuss the modalities to rehabilitate the children who work in the mines. The commission has given three months’ time to the state government to find out ways and means to rehabilitate the children. “We have to co-ordinate with the departments of education, police, social welfare and the district administration to find a viable package for the children,” Som said. According to reports, coal mining in Meghalaya popularly known as “rat hole mining” has changed the ecology and landscape of the hill state, besides affecting the health of the migrant children and their parents working in the mines. Some experts, who studied the coal mining activities in the state, have coined “rat hole mining” as the miners adopt unscientific methods. Since the coal layers or seams are thin ranging from 6 inches to 3 feet, the miners either use hands or traditional tools to extract coal. A minimum of 25metres is dug to extract coal. The labou-rers, including children, have to walk down through wooden steps to remove coal. If the fuel is exhausted in a pit, they look for coal in other areas. Children, mostly from Nepal and Bangladesh, are working in these Jaintia Hills mines with their parents. The Jaintia Hills district administration conducted a survey in 20 villages in July this year and found that there are 222 children working in the coal mines. While 153 were local residents, the remaining were from Assam, Bihar, Nepal and Bangladesh. According to the district administration, the survey was carried out after a Shillong-based NGO had brought out that 70,000 children work in the coal mines. Sources in the district administration said the population of Jaintia Hills is just over 2 lakh and it is impossible for 70,000 children to work in the coal mines. “Our priority will be to rehabilitate these 222 children,” an official with the state social welfare department said. Other than Lad Sutnga, Bapung, Lad Rymbai and Khliehriat areas in Jaintia Hills, rat hole mining is also carried out at Nangalbibra in South Garo Hills and Shallang, Langrin and Borsora in West Khasi Hills. The local indigenous population engages in traditional method of mining according to their land tenure system where the ownership of the mines is with the people and not with the government. Because of this, the Union government named the mines here as local cottage mines or small-scale coal mines, which operate beyond the purview of Coal Mines (Nationalisation) Act. The government has framed a draft mining policy to check the present system of unscientific coal mining. According to the policy, there are a series of measures initiated by the government for scientific mining. The draft mining policy points out that there is an urgent need to see that the environment is protected while initiating various mining activities.

(Source:http://www.telegraphindia.com/1100906/jsp/northeast/story_12899423.jsp)

Rising gold prices trigger mining rush in India

Kolkata, September 5, 2010: As gold prices reach record highs, it is adding new lustre to prospects for gold mining. While moves are afoot to revive state-owned Bharat Gold Mines (BGML), closed since 2001, Deccan Gold Mines, the country’s only listed private gold miner, is also stepping on the gas to start gold production. Also, the Karnataka government-owned Hutti Gold Mines (HGML), the only producer of gold in India, is planning to expand production through joint ventures, according to people familiar with the development. The mines ministry is seeking Cabinet approval to revive BGML as the ministry expects high prices to boost margins. According to sources, the plan is based on making BGML, a subsidiary of state-owned metals major, National Aluminum Company, or Nalco. The ministry’s move follows a Karnataka High Court directive that suggested revival of BGML due to the present gold market scenario. Since BGML was closed down in 2001, when the cost of extracting an ounce of gold became higher than its market price, the precious metal has appreciated nearly five-fold. Prices are now at over `19,000 per 10 gm, compared with `4,800 at the time of BGML’s closure. Deccan Gold Mines managing director Sandeep Lakhwara says it’s a reasonable effort. “High gold prices mean prospects which were marginal earlier, either in terms of grade or quantum of deposits, are beginning to look more economical. Companies too gear up to get the best possible returns in the shortest time. We are fast tracking some plans, which have greater potential and pursuing licensing and regulatory approvals for them. Interestingly, more funds get poured into gold exploration when prices are high, compared to when prices are low,” he added. Deccan Gold is confident on Ganajur in Karnataka where it has initiated third phase resource drilling. Based on the results, it will commission a pre feasibility study to estimate mineral reserves and ascertain its economic viability. State-run Nalco was cautious about a possible foray in precious commodities via joint ventures. “We have prepared a global bid document. However, our draft bid required court approval,” a Nalco official, assigned to look into the modalities of reviving BGML, said. Among the options was roping in a global mining company as joint venture partner, leasing out mines for outsourced mining through profit sharing and sale of property including land. Incidentally, BGML owns about 14,000 acres, which can fetch attractive price, given its proximity to Bangalore, where land prices have soared in recent years, said the official. The mines ministry has sought Cabinet approval for its plans for BGML. The options include sale of shares held by government in Bharat Gold to Nalco and other PSUs like HCL. The other plan is conversion of government loans into equity and continued holding of minority stake by government with either Nalco or other PSUs.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Rising-gold-prices-trigger-mining-rush-in-India/articleshow/6489010.cms)

Cos with captive mines to share profits with affected people

New Delhi, September 3, 2010: The government is determined to implement a policy intended to give those displaced by mining a share in the profits of the miners despite a less than enthusiastic response from industry, the minister for mines said on Thursday. The policy, part of a legislation setting the rules for investment in mining, will also apply to captive mines of companies such as Tata Steel, SAIL and Hindalco. The bill, if approved by Parliament, could make it mandatory for companies to issue equity shares to each member of every family displaced by the project as well as 26% of the profit, according to a draft version of the bill, minister for mines BK Handique said. In what could pose severe logistical challenge for companies as well as the government, Mr Handique suggested that the benefits of the policy should apply not only to new mines but also to existing ones and those whose leases come up for renewal. This could happen if the local administration is able to identify those displaced in the past. Mines generated profits for their owners for decades, and those who had lost their land in the past should also benefit, he said. “The state governments are firmly backing this proposal and I will ensure that it is part of the new mining law,” Mr Handique said in an interview. “This is in line with our focus on sustainable development.” The draft of the Mines and Minerals (Development & Regulation) Bill, 2010, being prepared under the supervision of a group of ministers, has endorsed a proposal stipulating that all resource operations of what it describes as “standalone companies” share 26% of their net profit on an annual basis with the people affected by the project. Lukewarm reception from mining cos They will also have to offer one share to each individual from displaced families. The government's thinking is that if affected persons share profits arising from mining operations, resistance from the local population whose land has to be acquired for industrial projects would dwindle. The proposal has had a lukewarm reception from mining companies. Tata Steel, India's largest private steel company with its own iron ore and coal mines, said locals should be made to benefit through gainful engagement rather than equity stakes and profit-sharing. "The thrust should be on building capacities and not on distributing money, which will defeat the intended objectives. There should be a mechanism for smooth implementation and monitoring where the government and industry take joint responsibility for improving the delivery system so that the benefits reach the targeted people," the Jamshedpur-based steelmaker said in an emailed response. While Hindalco and Jindal Steel could not be reached for their comments, CS Verma, chairman of state-owned SAIL, was cautious in his reaction. "There is no clarity so far on how it will apply to captive mines that are cost centres," he said in a response. If the bill is passed, metal companies could be required to hive off captive mining operations and offer shares in these as well as part of the profit for the lifetime of the mine. Companies will also be free to offer equity and profit in their larger metal operations on a voluntary basis. Standalone mining companies such as NMDC and Sesa Goa will also have to follow the same principle while rewarding project-affected families with a share in profit and equity.

(Source:http://economictimes.indiatimes.com/news/economy/policy/Cos-with-captive-mines-to-share-profits-with-affected-people/articleshow/6483144.cms)

Plan panel to moot new relief

Kolkata, September 03, 2010: The Planning Commission is likely to moot a new formula to compensate land losers in mining projects, whereby the displaced will get an upfront payment from mining companies. The commission would suggest the plan to the mining ministry shortly, and a clear picture was likely to emerge in the next two weeks, Planning Commission Member Arun Maira said on the sidelines of a seminar by the Institute of Company Secretaries of India (ICSI) here today. The Mines and Minerals Development and Regulation (MMDR) Act calls for 26 per cent of profits to be spent on land losers or making them shareholders. But, Maira said an upfront payment, which could be calculated on the same basis as royalty to be paid by the company in lieu of mining to the government , was a better idea. “The companies should set aside an amount, which could be in relation with the royalty they pay, to the displaced people. That could be paid even before the royalty is paid,” said Maira. Plan panel’s suggestion assumes significance in view of the recent row between Vedanta and the environment ministry over mining in Niyamgiri hills of Orissa. The Ministry of Environment and Forests (MoEF) recently rejected the application for grant of Stage-II forest clearance to the Orissa Mining Company (the Vedanta project), citing the company’s non-compliance with a number of laws. The Commission was also of the view that forming local bodies with representatives of the government, the companies concerned and the locals to sort out compensation-related issues could be considered.

(Source:http://www.business-standard.com/india/news/plan-panel-to-moot-new-relief-formula-for-land-losers/406844/)

Vedanta taps Gujarat for bauxite supply to its Orissa refinery

Bhubneswar, September 3, 2010: Anil Agarwal-led Vedanta Resources has begun talks with the Gujarat government to ensure long-term supply of bauxite for its refinery in Orissa's Kalahandi district after its mining project in the Niyamgiri hills was refused permission by the central government on environmental grounds. Mukesh Kumar, chief operating officer of Vedanta Aluminium Ltd, said the company is also prospecting the raw material in other states after the environment ministry rejected its mining plan near the refinery. "We are trying to sign a pact soon with the Gujarat Mineral Development Corporation (GMDC) for supply of around 600,000 to 800,000 tonnes of bauxite every year for our refinery. They have already agreed for 500,000 tonnes," Kumar tp;d IANS in an interview. GMDC is a government of Gujarat undertaking engaged in mining of minerals and developing mineral-based industrial products. "In the recent past we had several rounds of discussions with GMDC officials and the result was encouraging. In the next 15-20 days, we are likely to finalise something with them," he said. Environment and Forests Minister Jairam Ramesh last week rejected the company's bauxite mining project in the Niyamgiri hills in Lanjigarh, saying it will affect the environment and disturb primitive tribes living in the area for ages. The one million-tonne alumina refinery of the company set up in 2008 has been running on bauxite from other mineral-rich states, including Gujarat, Andhra Pradesh, Chhattisgarh and Jharkhand, Kumar said. The approval to mine bauxite in the Niyamgiri hills located closer to the plant could have helped the company cut operating costs. Kumar said he has requested the state government to provide alternative mines in nearby areas. "Since this matter (mining plan at Niyamgiri) is not getting resolved, we told the Orissa government that we cannot wait any more and kindly look for some alternative source of bauxite." "More then 500-600 million tonnes of bauxite deposits are there within 40 km of Lanjigarh. I told them to look into them and select one," he said. The alumina refinery in Lanjigarh began operations about three years ago and availability of raw material has always been a challenge.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Vedanta-taps-Gujarat-for-bauxite-supply-to-its-Orissa-refinery/articleshow/6479586.cms)

Plant trees in mining areas, directs HC

Nagpur, September 2, 2010: Maintaining its stern stand against illegal mining, the Nagpur bench of Bombay High Court has directed the state government to consider putting a condition in the lease, making it mandatory for lease holders to restore the land to its original stage by planting trees to maintain the ecological balance. A division bench comprising justices Sharad Bobde and Mrudula Bhatkar has also asked Nagpur collector to take assistance of CR Babu, director of Centre for Environmental Management of Degraded Ecosystems ( CEMDE India) and former vice-chancellor of Delhi University, to maintain ecological balance in the region since illegal mining had led to vanishing of trees and grassland. The court's orders came while hearing a PIL filed by social worker Umesh Chaube and three others, pointing out that illicit felling of trees was going on in the area earmarked as jhudpi jungle in Mouza Mahurzari, which has led to the approach road getting damaged. Over 22,400 trees had been planted in this area by the social forestry department in 1991-92, but due to illegal mining not a single tree is left now. The petitioner had attached TOI reports with the petition. Anand Parchure and Shrikant Khandalkar were counsels for the petitioners. The judges expressed anguish over the admission by the collector that illegal mining continued despite their best efforts. The court asked the collector to file a detailed affidavit giving names of lease holders, showing lease period and area. The collector was also asked to inform about material being mined from respective areas and if mining is done beyond that, what action is taken lease holders. Earlier, government pleader Nitin Sambre admitted that some lease holders have carried out mining beyond their limit and the collector had imposed fine on them, and also issued notices to the concerned revenue officials for lapses. Sambre also informed that maintenance of tress adjacent to mining areas lies with the concerned gram panchayat, which is already a party in the petition. During the last hearing, the judges had sternly directed the state government to depute an officer of the rank of additional collector to inspect illegal mining at Mahurzari. They also blasted the government on its inept handling of the 'sensitive' issue of illegal mining, which led to cutting of over 22,000 trees in the area. The government was told to verify the factual position over illegal felling of trees from Khasra No 100 and action to be taken against responsible persons. The judges also observed that if the lease holders had illegally chopped trees, they are liable to face the consequences.

(Source:http://timesofindia.indiatimes.com/city/nagpur/Plant-trees-in-mining-areas-directs-HC/articleshow/6478115.cms)

Mine Ministry drafts new policy to demarcate ‘go,’ ‘no go’ areas

New Delhi, September 02, 2010: Seeking to adopt a holistic approach to the issue of mining and avoid a repeat of the Niyamgiri incident, the Mines Ministry will soon draw up a new policy that would clearly earmark regions that would be out of bounds for mining and those areas where projects could be taken up. Official sources said the Ministry has prepared a draft policy and will seek the approval of the Cabinet once it is circulated and comments are received from various stakeholders. The policy will be based more or less on the exercise carried out by the Environment and Forests Ministry for the coal sector. The Mines Ministry plans to divide the country’s mineral rich regions into ‘go’ and ‘no go’ areas. The nub of the exercise is to identify areas of dense forest cover or sensitive areas where mining will not be allowed. The note will be put up for discussion and consideration of the Group of Ministers, headed by Finance Minister Pranab Mukherjee, before it is sent to the Union Cabinet. The GoM includes Environment and Forests Minster Jairam Ramesh, Mines Minister B.K. Handique, and Union Minister of State for Coal Sriprakash Jaiswal. The demarcation between mining and no-mining areas will cover metallic minerals such as iron ore, bauxite and zinc. Such a policy, officials said, will avert delay of projects and their getting stalled on environmental grounds. The Ministry will use data collected by the Indian Bureau of Mines, a body controlled the Ministry, which is involved in the development of mineral resources and protecting the environment in mining areas. The Bureau is currently engaged in developing overlay of mining areas overlapping with thick forest cover. Mr. Handique stated in Parliament last week that his Ministry was working to finalise a new legislation to give more powers to the government to investigate complaints of illegal mining and create a National Mineral Regulatory Authority. He said the government was also planning to set up special courts to deal with cases of illegal mining and take stringent steps, such as cancelling permission to miners. A plan to make tribals stakeholders in mining projects by giving them a share of profit was also being considered, he said. Mr. Handique further stated that States were being nudged to have better regulation to check illegal mining.

(Source:http://www.thehindu.com/news/national/article607928.ece)

More land to be freed up for coal mining

New Delhi, September 02, 2010: The government is likely to dilute tough norms proposed by the environment ministry that would have prevented companies from mining coal in large parts of the country, and boosting the prospects of an initial public offer (IPO) from a state-owned company that has monopoly rights to mine coal for commercial use. In what is widely seen as a climbdown by the ministry of environment and forests, the so-called ‘no-go’ areas—where mining would have been barred on grounds of danger to the environment—have been scaled down to just 15% of the country's proven coal reserves. Earlier, under strict norms proposed by the environment ministry, as much as 48% of areas with coal reserves would have been declared as out of bounds for mining. People familiar with the development said the ministry, which has earned praise from environmental activists globally for its tough posture against Vedanta Resources, may have softened its stance so as not to hurt the prospects of Coal India’s forthcoming IPO. Shares of Coal India will go on sale from October 18. The IPO, the country's largest, is intended to raise about $3 billion, and any doubt over the state-owned company’s ability to expand production would have hurt investor sentiment. “There is an in-principle agreement that sparsely-forested areas should be permitted for mining, subject to companies making more investment in managing genuine environmental concerns,” minister of state for coal Sriprakash Jaiswal told ET. “By our assessment, this exercise should restrict non-mineable coal areas to just 10-15%, preventing any shortfall in production,” he said. Final approval for this decision is expected to come from the Prime Minister’s Office, or PMO. The climbdown by the ministry, headed by Jairam Ramesh, will also help companies such as state-owned NTPC, Anil Ambani’s Reliance Power, and Tata Power to set up large power plants fired by coal.

PMO intervention led to change

These companies have the right to mine coal for so-called captive use, which means they cannot sell it in the open market. Over 200 companies, primarily power producers, have been allocated captive coal mines. The environment and coal ministries had earlier carried out a joint due diligence on nine major coal mining areas and found that about 48% of coal-rich areas (primarily in central and eastern India) were potentially not open to mining as they were located in dense forests. But this has now been scaled back to 15%. The change in stance came after the PMO intervened, said the people cited earlier, adding that the environment ministry has agreed to allow more land provided companies come up with assurances of "proper environment management". A broad agreement reached by senior bureaucrats of both ministries stipulates that only areas with high forest density will be kept out of bounds. Sparsely-forested areas where coal is likely to be found will be opened up for mining on the condition that the company doing the mining plants forests in two-and-a-half times the mined area as compensation. The PMO was brought into the issue as the policy affected large power projects, including the fast-track ultra mega power projects that are vital to meet crucial electricity generation targets. Moreover, Coal India, the country’s largest coal producer, would have had to scale down its production targets ahead of its public issue. "The new categorisation on ‘go’ and ‘no go’ areas will seriously impact our operations," Coal India chairman Partha S Bhattacharyya had told ET earlier.

(Source:http://economictimes.indiatimes.com/news/economy/policy/More-land-to-be-freed-up-for-coal-mining/articleshow/6477880.cms)

Vedanta plant gets showcause notices

Bhubneswar, September 2, 2010: A week after the Ministry of Environment and Forests denied clearance to Vedanta’s alumina refinery for bauxite mining in Niyamgiri mountains of Kalahandi district, the embattled company on Wednesday received another jolt with the ministry issuing two showcause notices to it asking why its existing 1 million tonne alumina refinery at Lanjigarh should not be closed down. The letter from MoEF scientist Nalini Bhatt, dated August 31, issued to the Director (business development) and COO of Vedanta Aluminium asked why environmental clearance to the 1 MTPA refinery issued in 2004 should not be revoked under Section 5 of Environment Protection Act, 1986. The company, which has been given 15 days to reply to the notice, was also asked why direction for closure of the 1 MTPA refinery should not be issued. The letter said “appropriate orders” will be passed if no replies were received within 15 days. COO of Lanjigarh refinery Mukesh Kumar, however, said the company is yet to get the notice and Vedanta has not done any violations. Meanwhile, trouble ensued at the refinery on Tuesday hundreds of labourers engaged in refinery expansion work by L&T, vandalised the office premises demanding advance payment.

(Source:http://www.indianexpress.com/news/Vedanta-plant-gets-showcause-notices/676138)

Why not use oil & gas model to allot mines, asks Bhartia

New Delhi, September 01, 2010: Large mining projects can be salvaged from potential political controversies if the government adopts the model used in oil and gas sector for exploration of other minerals too, the Confederation of Indian Industry president Hari Bhartia has said. This is the first time an industry chamber has commented on the issues surrounding the allocation of mining rights after the the government denied environmental and forest clearances to Vedanta’s proposed bauxite mining venture at Orissa’s Niyamgiri. The government secures environmental and other necessary clearances before it proposes to allocate oil and gas blocks through competitive bidding. At the Express Group’s Idea Exchange programme, Bhartia said the same model could be employed for allocating mining rights for other minerals also. The government can then ask for a commensurate revenue share form the mining activity as it gets profit petroleum. “The problem begins when something is first allocated to a company and clearances are sought later,” he said. “For oil and gas exploration, the government applies for and gets the environment approvals and then goes for the transparent bidding. If we are following it for oil and gas, why can’t it be for mining projects,” Bhartia asked. In a letter to Vedanta posted on the environment ministry’s website on Wednesday, it asked the company to explain why the environment clearance given to its Orissa plant should not be revoked. Asked for CII’s views on the Niyamgiri episode, he said the industry body has not formed a view on the subject since the company concerned, Vedanta, has not approached it for any help. “CII takes up an issue when it affects a large number of its member companies. On Vedanta, CII has no view because no one has spoken to us about it. We are watching the situation closely but we have not raised an alarm so far,” Bhartia said. Asked for his personal view as an industry observer, he said he’s not privy to what all transpired between the government and the company; therefore, it was difficult for him to form a view and comment. “There may be some positives and some negatives, unless one is privy to all the details, it is difficult to form a view,” he said. However, Bhartia said Niyamgiri-like situations happen all over the world and companies have to deal with the interests of local communities. “Issues pertaining to environment, in the case of mining in the forest or hills, or marine-life related issues in the event of oil exploration in the sea do crop up. Companies have to learn to deal with such situations specially when local communities are involved,” he said. Still, with land acquisitions posing challenges to various industry and infrastructure projects, is CII worried? “We are concerned. Large industrial projects need land. CII has been telling various state governments that they have a key role. Ultimately, the industries will go to only those states which are proactive,” he said. Emphasising on the role of state governments, Bhartia said that large projects like automobile manufacturing plants, hospitals, educational institutions among others require large amounts of land. Therefore, state governments are in the best position to acquire land before inviting private sector companies. Anil Agarwal’s Vedanta Resources proposes to mine bauxite from Niyamgiri hills for its aluminium refinery in nearby Lanjigarh in Orissa.

(Source:http://www.indianexpress.com/news/why-not-use-oil-&-gas-model-to-allot-mines-asks-bhartia/676154/2)

Hint of more mining vetoes

Calcutta, September 2, 2010: The veto on Vedanta’s bauxite-mining project in Orissa is not a “one-off thing” and industries violating environmental norms might face similar action soon, Jairam Ramesh has said. In an interview with The Telegraph, the forest and environment minister denied any political pressure behind his decision last week, although his plan of action seems in line with the Congress’s latest tribal policy. The Congress has decided to stand up for the cause of tribals and win them over politically, and use the same strategy to develop a disconnect between them and the Maoists. By extension, this would neutralise the Maoists’ claim that tribals were being exploited and their land forcibly taken over. “There is no political or other pressure on the Vedanta issue. We have rejected the bauxite-mining clearances in the Niyamgiri hills because they violated stipulated norms,” Ramesh said. “It (denial of permission to Vedanta) is not a one-off thing. You will find that many industries not conforming to environmental and forest norms will soon face similar strictures.” The minister said so far strong action had seldom been taken against non-conforming industries. “Previously, the department used to clear almost all projects received by it and it almost acted like a courier. Now we are extremely stringent with the application of laws before giving clearances.” Sources said despite Ramesh claiming otherwise, the political ploy in his contemplating action against other non-conforming projects in tribal-dominated areas could not be ignored. Some of these are already under the Supreme Court scanner. This also falls in line with Rahul Gandhi calling himself a sipahi (soldier) of the tribals at a rally in Orissa’s Kalahandi barely 48 hours after the veto on Vedanta. “You’ve been fighting for your rights peacefully. Your voice has reached New Delhi. You’ve saved your land, mountain and religion (tribal groups revere their forest and hill as deities). I extended help in whichever way I could… as your sipahi in Delhi,” he said. Sources said the Congress’s tribal policy was clearly evident in Rahul’s words. If his reference to “fighting for rights peacefully” pointed to the success of non-violent —hence non-Maoist —means of protest, the use of sipahi was aimed at winning over the tribals politically. And Ramesh, known to be close to the Gandhi clan, did not seem averse to the strategy, the sources added. Environment activists have appreciated the move to revoke clearance to Vedanta. “We support the environment ministry’s directive on Vedanta as it was clearly violating the tribal and forest right acts,” said Sunita Narain of the Centre for Science and Environment. Another tribal activist added: “I don’t mind if there is a political angle to the denial of environmental permission to Vedanta. The bottomline is, perhaps for the first time, the government has accepted tribal people’s right on the land where they live.” Ramesh is reported to have withdrawn Vedanta’s clearance on the basis of the recommendations of a committee headed by National Advisory Council member N.C. Saxena and a forest advisory committee. Both had concluded that Vedanta violated three central laws: the Forest Rights Act, the Forest Conservation Act and the Environment Protection Act.

(Source:http://www.telegraphindia.com/1100902/jsp/nation/story_12886585.jsp)

It’s not end of the story for Vedanta in Orissa: Saxena

New Delhi, September 01, 2010: Vedanta could have another shot at the bauxite mining project in Orissa’s Niyamgiri if it promises to be within the confines of the legal framework, NC Saxena, member, National Advisory Council, who prepared the damning report on the project, told FE. The Orissa government could appeal the matter in court, and if Vedanta restarted the process of taking permissions and stayed within the law, the project has a chance of revival, he said in an interview with FE. According to sources, while the Orissa government is contemplating legal recourse after one of the biggest private investment proposals for the state was shown the red flag, it is not sure whether Vedanta has taken any legal advice. Saxena also denied that he or anyone in the forest advisory committee of the environment ministry was inherently anti-industry or anti-development. “India is not the only country which is industrialising or is grappling with issues of environmental degradation related to these processes,” he said. “But the trend in Europe, US and other parts of the world has been to spend time and money on developing superior technology, which leads to less intrusive effects on the environment,” he added. “Here, the effort is to subvert systems as it costs less than any genuine development of technology which would help you stay within the law and also lead to industrialisation without concomitant environmental degradation,” he said. The example he cited was of the reforestation plans that companies which would cut trees for projects would submit to the government. “Most remain on paper, with no checks,” he said. Saxena said that more than anything else, he fears that certain ambiguities in the Forest Rights Act, 2006 (FRA) would create some problems in land acquisition issues in the future. “What FRA gives tribal and forest-dwelling communities is community rights but not ownership; so while their claims to use of forests is recognised, it is not the right to sell or own, or even devolve as inheritance. Their consent is required if forest land has to be acquired, but the government remains the owner of the land. This ambiguity will create problems in the future,” he said. He added that the National Advisory Council of which he is a member will be looking into these aspects when assessing the implementation record of the Act.

(Source:http://www.financialexpress.com/news/It-s-not-end-of-the-story-for-Vedanta-in-Orissa--Saxena/675615/)

Sector-specific task forces to raise India-South Africa trade

Johannesburg, September 01, 2010: India is seeking to put bilateral trade linkages with South Africa on the fast track with the formation of sector-specific groups comprising CEOs from both nations. Recommendations made by the groups will help the governments take decisions to increase investments, identify areas for deeper engagement and better understand the business expertise and capabilities on both sides, commerce and industry minister Anand Sharma said on Tuesday. Speaking on the sidelines of the 3rd Doing Business with India conference jointly organised by the Confederation of Indian Industry (CII) and the commerce ministry, Sharma said, “The CEO’s forum was reconstituted during South African president Jacob Zuma’s visit to India in June. The first structured meeting of the forum was held yesterday where it was decided to form four sectoral groups.” The four task forces deal with energy, financial services, mining and infrastructure and comprise CEOs of leading companies from both nations. The next meeting of the CEO’s forum, headed by Ratan Tata, is scheduled to be held in New Delhi in March 2011. The task forces will seek a preferential trade agreement to reduce duties for collaborative investments. Sharma on Monday said that the two countries will concentrate on speeding up the India-SACU preferential trade agreement (PTA) to ensure that the trilateral partnership between India, Brazil and South Africa falls in place. SACU, or Southern African Customs Union, comprises the African nations of South Africa, Botswana, Lesotho, Namibia and Swaziland. “This (PTA) will greatly enhance cooperation between the three countries, which is important given the tectonic shift that is taking place in the global economy towards Asia, Africa and South America,” Sharma said. The minister also said the government is examining the possibility of entering into a comprehensive trade and investment enhancing agreement with South Africa to increase the already strong bilateral trade. “We are going to examine a comprehensive economic cooperation agreement with South Africa, as it is now our strategic partner,” he said. While bilateral trade increased to just $7.73 billion in 2009-10 from $7.49 billion in the previous year, Sharma said the figure had raced to $2.27 billion in the first quarter of 2010-11 alone. “We had set a target of $10 billion for 2011-12, but with the pace with which bilateral trade has grown, we might be able to meet that target this year itself,” he said. South Africa trade and industry minister Rob Davies advocated increasing south-south relations. The minister said that during the recession, while exports from South Africa to the developed nations had decreased, those to India and China were on the upswing due to the nations’ relative immunity to the slowdown. Davies also said that bilateral trade was based on “complementarities and respecting each other’s sensitivities”. “We do not want to smash nascent industries in India. We want to add to each other’s development process,” he said.

(Source:http://www.indianexpress.com/news/Sector-specific-task-forces-to-raise-India-South-Africa-trade/675699)