[ud. 19 / 96

RAJYA SABHA

DEPARTMENT-RELATED PARLIAMENTARY STANDING COMMITTEE ON INDUSTRY

NINETEENTH REPORT ON

THE DEMANDS FOR GRANTS OF THE MINISTRY OF MINES FOR 1996-97

(Presented on the 30th August, 1996)

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RAJYA SABHA SECRETARIAT NEW DELHI

August, L996/ Bhadra. 1918 (Saka)

CONTeNTS

PAGES

I. Co~wosn toN o~ till! CoMMrnc<. ................................. .. ...... ..... .... . (i)-(ii)

II. Rnotn<W'I H"'COMMI'Io 'EE ............................ . ... .. . . . . ... . .............. .. l-6

111. ANI"toXOr<> (MII"IIIl:.SOFlHEMto1:.11'>10~) ....................................... .. 7-17

COMPOSITION OF THE COMMITTEE

1. Shri Ashok Mitra--Chairman

RAJYA SABHA I 2. Shri Maurice Kujur

3. Syed Sibtcy Razi 4. Shri Govindr~o Adik 5. Shri Rajubhai A. Parmar 6. Miss Saroj Khaparde 7. Shrimati Anandiben Jethabhai Patel 8. Shri Kanak Mal Katara 9. Shri Ram Deo Bhandari

10. Shri An il Kumar 11. Shri T.M. Yenkatachalam 12. Shrimati Jayaprada Nahata 13. Shri Jayant Kumar Malhourra

LOK SABRA

14. Smt. Jayawantiben Mehta 15. Shri Ritl~l Pd. Verma l6. Shri Radha Mohan Singh 17. Shri Prabhu Dayal Katheria 18. Shri Nitish Bharadwaj 19. Shri Namdevrao Diwathe 20. Shri Ananth Kumar 21. Shri M.K. Pa til 22. Shri Shyamlal Bansiwal 23. Shri Nawal Kishore Sharma 24. Kumari Frida Topno 25. Sbri Sanat Mehta 26. Shri Udaysinghrao Gaikwad 27. Shri Chitturi Ravindra 28. Shri K.H. Muniyappa 29. Shri Pradeep Bhattachar)•a 30. Dr. N. Subr~manyam 31. Sml. Usha Meena 32. Shri B.L. Shankar 33. Shri Naval Kishore Rai 34. Shri Sunil Khan 35. Shri L. Adaikalaraj 36. Shri M. Ramanamlian 37. Sbri Anandrao Adsul 38. Shri V. Alag1risamy 39. Shri Bhakta Cha ran Das 40. Shri Chandra Sekhar

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(ii)

41. Shri Darb3nt S~ngh 42. Shri P.C. Thomas 43. Shri Xavier Arakkal

SECRETARIAT

Shri Satish Kunmr, Joint Sccrcwry Shri Om Parkash. Deputy Secretary Shri Dccpak Goyal, Under Secretary Shri Mom Raj Singh. Commiuec Officer

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NINETEENTH REPORT OF !'HE COMMiTTEE

In my capaci ty as Chairman of the Dep<trtmcnt- Related Parliamentary Standing Commiltcc on indu~try . l. A>hok Mitra. having been :w thorised by the Committee, hereby present it> Report on the Demand~·for-Grants of the Ministry of Mines for the year 1996-97

2. The Commiuec held meetings on August 8. 9. 13 and 19, 1996, and held discussions on the Mmtstry';. demands with nfficer> of the Mini\lry. represent;ttives of indu;.try associations and trade union leader;.. Names of indivtdua ls and associations who appeuted before the Committee arc given in the An ncxurc.

3. The Committee is. at the vtry outset. constrained to offer some observations on the fate of most reports submitted by Department-Related Parliamentary Standing Comnullccs. It ts the general expectation that suggestions and recommendations by such Commtttcc> would receive careful attention from the government and action taken on the basis of ~uch recommendations be duly communicated to the Committees concerned. No such healthy convention, the Committee is afraid. has been allowed to develop. While Demands-for· Grants of individ ual Minbtrie' <tl'C com.iclerell in Parli ament. recommenda tions made by rh~ overwhelming majority of the Swnding Committees fall by the wuyo,ide. This happens because the appropriations of most !vlmislries are gu:llotmed; since no opportunity arise' to discuss in detail on the floor of cuhcr House. the dcm,m<b for gr;.nts of the :vtini~tne, ,

observation\ made by the rc,pccttvc Commiuec' tend to he ignored. ·1 hal is however not the only m:t!tcr of regret. even during the sub>cqucnt part of the \C<tr. the Ministric; are not generally 111 the habit of responding to the concerns expressed and 1ssucs raised by the Commtllees. If the hope ts en tertai ned that perh:lps in tJ1e departmental budget for the following fiscjll ye<~r. suggestion' and propos<tls enwna ting from the Committees wou ld be taken itHO ;tccount. that hope loo i\ by and large bclic:J. The experiment with the Standing Committees is no" almost four ye:trs old. It is, in the vie" or the present Committee, important thnt the entire range of issues in regard to the functioning of the Standing Commillecs is thoroughly revie"cd. If U1e objective is to render the Standing Committees into effective instruments for raishtA the level of performance of parliamentary democracy, the Standing Committees deserve to he offered adequnte respect; they should, in addition be properly housed and serviced. If, on the other hand, the absent-minded treatment as at present contiuues. it should lx• for serious consideration whether the e>.periment with the Committee )y)tem \\ork ought not to be dislll!ll~d ~>itb.

4. The maJOr a'pect of th~ demand for grant' of the Ministry of ~1mes. which m the view of the Commmee should "'II for conce11l i~ its rebtively ~mall magnitude. TI1c Mini;.try is responsible for li te explonnion, dcvelopn tcnt <~nd exploitation of <~II minerab barring <t tomic mi nerals, co:tl . natural gas and crude petroleum. The richnc" and variety of underground mineral wealth. the coun try pos~es'''· boggle the im<tgination. l'hat ap<ltl . the country is ~tato::d to be on the threshold or a ''"II} .. ~cderato::d procC\\ of industrial gro" th It i~ at the 'amc time endeavouring to enlarge th <:xport potential TI1c"! facto" together ~hould han! pcNmdcd the government, the l\lim,trv of Mine> and the l'lanmng Comnm\ion to place at thts JUIICillrc maximum cmphusi~ on a """'ivc <.kvclopmcnt of mining opc t ,,lll>n,, In thi~ <~rea of uctivity, tJte long-term re wm on investmen t cmmot but b<: exceptionally htgll. The need to reduce fiscal deficits is offered :•s ju~tification for economizing on budgetnt·y outlay for different Ministries, Including for tbe Ministry of Mines. in the immediate period. Such economit.ing, in the vie" of the Committee, is some" hat irrationul if a wider time framt is taken into account. Whether 11 h zinc. bauxite chrotnite. gr.•phitc. gold or other prcctnu' mew[, or stones. the posstbihtte' of mim:ral-ba\cd 111du,tnal l'Xpan\lon 111 the country ate indeed tm mcn,c, provided ;odequ;llc tcchtHliO~K;ol and mlrasrructural 'UJlj)\lrt

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does not Jag behind. The validity of this poin t of view is illustrated by the strides made by the aluminium industry in recent years. Where such domestic processing of mineral products is not yet considered feasible, the scbpe for exports to countries hungry for receiving them Is practically limitless. And yet, in the overall scheme of things, the exploration and exploitation or minerals for contributing towards the nation's prosperity appears to occupy a very modest space. The proposed budgetary allocation of less than Rs. 250 crore for the Ministry of Mines is an eloquent testimony to the mimiature scale of official thinking.

S. During the span of the past five decades, the authorities have mostly continued to lean on the constricted, colonial edifices of the Geological Survey of India and the Bureau of Mines in the matter of Mineral use <md exploitation. The only addition to the twosome has been the Mineral Exploration Corporation. Even if rhe activities of the Corporation ;lre considered together with those of the other two bodies, the sumtota l of the thrust is most modest. On the government's own reckoning, the aggregate va lue of extraction of minerah coming under the purview of the Ministry of Mines exceeds Rupees 30,000 crore per annum. This return is on the basis of an annual budgetary outlay of less than 1 per cent of this amount. The allocalion for the Ministry, in the view of the Committee, should be doubled and tripled; in case this be done, the return to the nation is likely to increase not just pari passu but five or six times higher than what it is at present.

6. The Committee has not the least doubt that, in the context of the country's requirements and the global poss ibilities tl1 at await for mineral processing and exports the alloca tions [or the Geological Survey of lndia and the Mineral Exploration Corporat ion an~ altogether meagre. The appropriatio n sought for the MEC for 1996-97 is only to the ex tent of Rs. 16 crore . The suggested alloca tion for the Geological Survey of Indit~ , while higher, is sti ll Rs. 169.80 crore only. The GSI needs to expand its activities all over the country and take in hand, simultaneously, the exploration of several lypes of stones and minerals. II must invest In the latest technology; wherever necessary sophisticated equipment must be imported. It should, besides, engage scientists and technologisl~ as well as skilled and unskilled manpower on a liberal scale to back. up its expanded activities. The activities of tbe Mineral Exploration Corporation should expand in tandem. The Committee is therefore disturbed to learn that the GSI, instead of planning for a major broadening of its activities, has in fact been proposing a gradual reduction in the number of its employees on tbe reported ground of lac.k of finance.

7. This stance. in the view of the Commiuee, is altogether irrational. In a growing economy, minerals provide 3 solid base fo r industrial deve lopment whatever historical data an: available indicate that in countries fonunate to possess underground mineral wealth, the rate of growth of exploitation of suc h minerals has been usuall y three or four times higher than the rate of industrial growth in the more intt:nsc plwsc of economic development. ln coun tries which had no mineral wealth. the impon of minerals showed a steep jump dunng such periods little reason exists for assuming that the paltcrn for Ind ia would be any different. But th is panern mus1 be allowed to evolve: i1 can do so if there is no stinting on supportive outlay.

·8. In the circumstances, the Committee will strongly endorse proposnls for sharply increasing lhe outlay~, both on capital and maintenance accounts, for both the Geological Survey of India ond the Mineral Exploration Corporation. Whmever additiona l appropria­tions are made for the Geological Survey of India are likely to be redeemed within the space of a few years because of the extra output likely to be genera ted in the wake of the expanded natu re of investigative and exploratory work to be undertaken by the organisation. If. for argument 's s~ ke. it is assumed that the task of vastly expanding the scale of

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exploitation i~ not, for a number of reasons , pntcticttble in the immcdime period within the ambit of the OS!. the authorities might even consiclcr leasing out, on an experimental basis, some proven property to private pnrties on a contractual basis. Past expe rience has of course not been uniformly encouraging in ~uch matter. Some parties were offered mines on lease but have not exploited them in a proper manner should have their leasel; revoked. The Committee is aware or the sensith·e nature of leasing out operations; norms and procedures must be carefully worked out and adhered to and must be demonstratively trar1oparent. The need for caution here cannot be over·stnted in view of certain disturbing reports regarding a number of contract:. sijlned in recent yenrs. There is howev~r enough internnlional experience available in this area from which the authoritie~, including those in the Geological Survey of India, could dra" profitable lessons from.

9. Even apart from the pos5ibility of entering onto contr~ctual arrangement> with pnvutc agencies, the ~cope exist;, for incre<i\ing several-fold the activitie;. of the Mineral Exploration Cot-poration. If the Corpontt ion " assumed the riglu k111d of techn ical and administrattvc in frastructut c, a' well <IS symp~ t hy and support frnm the Mitm try, promotional and developmcnl!ll work undertake n by it could promi~c ~n cxccptionttlly high rate of return. The Corporation i~ at pr~sent, being run on almost a ~hoestring basi~ and its technological base is almost non-existent. There i~. the Committee understands, no operational head in the Corporation for the past fel\ months; it does not C\ en have a technical director. All thb will have lo change if the challen~e of mineral ex"]>loration is to be mel on behalf of the nation.

10. In the course of the pt·e,cnt liscal year itself, the Ministry, the Committee is strongly of the opinion, should hold consultations with both the PlanninJl Commission and the Ministry of Finance and post its demands for a significantly expanded scale of activities for both the ~1ineral Exploration Corporation and the Geological Suney or India. It is desirable that both organisation• formulate a perspective plan spanning over ten to fifteen years and do•elail it into the country's five year plans. Additional appropriations sanctioned for the current year could be taken care of at the lime of the presentation of the supplementary estimates.

l I. The liberation front claustrophobic budgetary constra ints ~h(1\t ld enable the GS I ;tnd the Minentl Explorat ion CorpQration to break new ground. including extraction and exploi tation of minerals on a truly commercial scale. The range could cover graphite, granite. dolomite, lignite. wolfram. gold. diamond' preciou.~ ston~' of various de!.<:ription~ and C<ttcgones. True. all tht~ wtll call for extra money on •• continuous ba>is. The Geological Survey of India, the Committee understands has recently set up a consultancy division . Thi~ division's activities deserve to be enlarged so that the GSI can generate its own resources for further expansion of work in different spher~s . The GSI must be enabled to acquire the very latest and bc~t equipmcnts avnilnble any\\ bere so that its work doe> not suffer.

12. Some of the mint:rah newly extracted will need a certatn degree of mdu .. trial proce<~>ing before they are ready for 'ale or export. Such proce>sing may he orgamscd Ctther b) a wing of the Mineral Exploration Corpo ration it self or by private parties l'ia contr<•ctual arrangement' with the Government. Given the extremely depressed conditiOn of the hinterland from where the minerals are extracted and the potcnwtl for large·~calc

employment in mineral processing, it should be the centerpiece of official policy to encourage the establishment of proc_es.sing units in the proximity of the mines. In c:tse this arrangem~nt is not immediately feasible. the minerals will. of cour~c. need to be tran~poned to location' where mincr.tl processing unil\ already operate. The 1\linistr) of Mine.,, the Committee feels, should nonetheless actively encourage eodea,ors in the mineral-raising States to set

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1111 small-scale mineral processing unit~ under either coop~rattve or private auspices. When necessary, the Ministry may operate a scheme for advancing seed capital for such ventures. Wtre the experiment successful C\'tn partially, it would be a blow as much for industrial dispersal as for em ployment generation.

13. It will be pertinent to consider in this connection yet another pos,ibility In :a numl>er of State~. the rc:.pectivc State G overnmen t> have promoted Mineral Developmen t Coq>or;~tions diredly under their own :n1spiccs. M o't of the:.c organisations hnve tended to

opcrolle on a modest seal~: and the bureaucratic overh3ng ha~ been much too pronounced to permit them a rc,pectahlc levei of techn•cal and m:lnagerial e fficiency. Whatever mineral\ they have been able to lo cate have genc.:rally re mained b<'yond the pale o f comme rcial e.xplouation primarily becau~e of lack of rc>Ource' at the State level The nation' s capital stock, the Committee is firmly of the opinion, should be con~idered a~ belon,::ing to a common pool. The Ministry of Mines may, therefore, consider coordinating the activities of the C.Sl and the MEC with the functioning of such mineral de•·clopment ag~ncies at tht' State le••el and offer them wherever called for, technica l and managerial a~\istance and ad,.ice. " common pool of technologists, drawn from Centr~l und Stnt~ le••el ngencies, could perhaps h~ made n'•ailable to advice small scale operators in the cooperatiH' and prh·ate ~~ctor. eng:1ged in mineral processing acti>'ities.

14. or the public sector unit' under the admimstnHivc control of the Ministry actively engaged in commercial operations. the llandustan Copper CorporatiOn and Handu\lan Zinc Limited arc.: currently experiencing some diflicultie,, ror hoth unih, the lowcnng of 1mport tariffs in recent years in the wake o f economic Ji bcralismton has been an issue of rn<1ior concern. The further reduct ions proposecl 111 this yc<~r's budget have aggravated lhi' c<>ncern The prtdicament these 1110 units face. the Committee feel~. ealls for some s)'lllp:uhy an<t understanding at higher levels. The units m;ay he invited to preJwrc n development programme spanning onr the or't five to ten )ears elaborating details of planned capacil) re~tructuring or e"pansion leading to reduction of unit co~t on a step by step ha\iS in the lOnrse of the year~. They could also suggest o paueral or lowering of import duties the)' could live "ith. After examination and veiling, th t"ic schemes ma) he discussed 'dth the :'>lini'lr)' of finance; recommendation for some adjustment> in the import dul) schedule could then follow. On one particular issue. the Committee "<HIId like to express its Yicws in n1te)loritul terms. "' u matter of principle, the rate of clnt), wl~t•thcr C;>.<i'e or import, on hask inputs in an} branch of production must not e"ceed the rate of dut) for a fini\he1l prortuct: a situation \\here things are othcrwiw cannot but hinder dome,tic i1utustrial ~rowth.

15. As far us Hindustan Zinc is concerned. the •melter at Udaipur nt'ells \\holesalc O\erhauling. This \\ork ~hould ht' taken up on a 11riority hasis in rase net·essar) through infusion or budg~tllr)' assist;ance. nlis ll"k 'hould proceed h;tnd in h:tnd wilh u pmc.:es~ o l upgr;adat ion of technica l .md man:rgcrial manpower capahlc <lf lifting the level of pcrfonn· ilnce <cvcrill notthc' h1gh . The Committee woul<l make an ident~<·al sugg"lion for the Dariba Mines.

16. The Committee 's :lltcntion has been drawn to the loKI tha• an the c;;l\c of ;1 nnmbc1 of public 'ector undcnakllll\' proce~'ing mlllCI«l p1mluch. lh<' h<·ac.J <lfficc and the regiStered office h;~ppcn 10 be locatc.:d remotely from the site ul the nunc' :and rnuin J)1llcess1ng <tctivitie,. This practice 'hould he di.,continued; unl~" there ;lre compelling circumstances. the heudquurtcrs of \uch companies should be located in close proximity to U1e ~ite. Meeting~ of b11nrds of directors should nlso take place in ol'l'iccs close to the 'lte.

17. Th.: Committee fcc:b wmpdkd Ill appcml ,, "'l'"r:tte paragraph on the Mani'tr~ ·,

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<ipparcn t lack of decision maki ng on the future of the Dharat Golcl ~lmes ln at least two of tts earlier reports. the Dcpartmem-Related Parliamcntar) Swnd1ng Comm1ttcc on Industry had occasion to refer to plan> of revival for this mine, which had been in the past a most profitable enterprise. There are, the Comm1ttcc undcrstotnds. two separate rcvivul puckagcs currently under consider;tl!On. but the Government has been unable to make up ns mind on either Such procrastination serves the nation ill . The workers continue to be paid out wages each month or .11 interval~ of two to three month~ Since other working capital rcquiremt:nts ;tre not met. actual procluction is however negligible or nil The Commiuec ha' satisfied itself that if only the fund~ the Government have dispcr..ecl over the past half <t dozen yca1 s w meet contr<1Cttwl obligations to the workers had been in\<:sted in nne !01. the enlity could in .til probllbility ba\c been b\ now put back on 11:. fects. The reference to the:' Board of Jndustri<1l and Financl[tl Recon~truction ha~ not yielded any result. becau-c whether the unit will or will not be revived depend~. 10 the final round. upon the government'~ <lWn dedsinn. In the view of the Committee. it would muke sense to "ithdraw the reference from the 8IFR and, without any further to~, of time, utilbe re'ources directly from th< National Renewal Fund to finance and .~upport either of the re\'ival plan\ under con~ideration for the IIGML.

18. The other two pubhc undertakinl'' under tit~ umbrella of the M1ni,try. Bh .. r<tt Aluminium and Nauonal Alurnin111m Corporation. have had thc1r ups ancl down' in recent years. Fluctuaung intcm;ttion;~l pri~n arc a tactot needing con,tant watch on the pan of the": enterptisc,. In thc1r case too, u pwspecuvc plan whkh integrnt.:s productton planning, CO\t reduction effort' and adJu,tmcnb 111 th< tal ilf st1 uctu1 ,. will be a wonhwh1lc expetunem. Both UALCO and NALCO hav<' however often been 'ictim< of disruption in po,.cr suppl) in the r~cent period, thereh) aiTt:cling their :tbilit) to keep up "ith commitments entert'd into in the order book. the Committee hop<'s these problems "itl be resohed "ilh the Ministry's ad,•ict· and help and con•ultations with the State CvYermntnts concern~d.

19. A reference wa' made in the ClHnmltlec to the large sc;~le availability of gruphitcs and gramtc~ ol rare specifications which offer enormou~ o,cope for comm~rct<tl exploitation, mlcuding for export,, The Ministry and the Miuet·al Exploration Corporation ma) be urged to enquire into the possibililie:.~ regardinJ:: the e:..traction and exploitation of such stones, and oversee infrastructural activities, including technical and commercial lin!-age, that may be called for. A separate promotional fund at the di~posal of the Ministry would be helpful for such purposes. The Committee will have no hesitation to recommend the establishment of such a fund either directly at the diSP<isul of the Ministry or delegated to the cm·c of the Minentl Explor:ttion Corporation. Occasional complaints ha'e hetn made that sanctions ror mining plans are held up for an inordinate period in the Bureau of Mines. This matter deserves to he looked into.

20. The Committee will now refer to ;m '"uc which it con~1ders to be of out~tandmg unportance. M111c worker~. while working in m1ncral quurrie~. co<tl pits or elsewhere. belong to the mo't undcrpri,ilcgcd and exploited section\ or the community. TI1c m1110n\ atte1111011 i> drawn to their pl iglu on I~ when an accident t:ikes plucc; in other Wllrth u va,t sheet of oblivton blankets an~ dt""''ion of the mi~crable human condnion ;Jt thb level Mmmg 1\ a lugh·n'k economic activ1ty. fu ll <>I huz:ords. and ha;wnb 1101 ju't Ill health. death \talk' them o~t c;1d1 moment. Workers engJgcd m 'uch longevity crodtn!! ,md hie rt\king jnlh c:111 ju,urialll) dcm~nd the introduction ;tnd mtointenancc of \afct) tne<1>Urc' and dc•icc' of the h1ghc't qualtty and ~pcc1fie<t1ion.,, That :11nm, the htlU\lllg. cduc:llion anti hea lth c;11c :1nangcmenh for their familic' need to he on a mo<t generous ... calc 'Jiwre should also be 1l\.l pcnny-pmch1ng in providing these fam iltc' with blanket i1Ntruncc wvcr. The Committee hopes th~ ~tinistr~ "ill square!~ meet its obligation!. in these matters.

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21. A further matter de~erves to he me.nlloned in this connection. Where work force is arranged through contractor~. women and children who arc put to work by the contructor~ are exploited in various manners. II should be the re~ponsibility of the authoritie~ tt) exercise vigil so that such exploitation ts brought to " halt and the regime of contractors is phased out. It is for consideration whether n vigilance committee functioning 11itltin the Ministr)' could not ensure that -.elfare fadlilies intended for the workers do in fact reach them.

22. A final matter, it i~ entm:ly fair that even (tS the rcsponsiblity for economic and industria l growth in the country is shared evenly between the Union and State Governruent,. resources that en<tblc the fulfilment of this objective i,.; abo ;harcd in a just manner. Tltc royalty on mining operat ions, which is a p rerogative of State Governments, b >upposcd to be p:tid by the Centre to the States on a regulm· ba,is ~nd ut ro te' that are adju,tuble from time to time. The Union Government reportedly has not been honouring this practice; the rates arc not being adjusted every two years as per standing rules ;tnd there is also a ccrtui 11 reluctance to cross over to ~n rul-"alorem system of royah} payment\. The Commillee feels that whnte-er is due to the Stat~s ~hould be paid in :.11 equitable manner. The Commillee further hopes that a part of the prcx-eeds of royalty, once made a,·ailable to the full sntisfac.tion of the parties concerned, i~ m:tde available for the welfare of the people in the mining ureus. It is equally imp<>rtant that payment to the 'illagers as compensrttion fot· their land taken over for mining activities is paid on an immediate basis: The record in this respect is most dismal.

23. In Its report on the Demand~ for Grants for the Minb.tr} for the year 1995·96, the predecessor of this Committee made a number of recommendation~ in regard tn the opcnuions of the Sikkim !\-1ining Corporation. It docs not uppear that mallets lutvc movco ot nil in th is re~pect . Given the ~xceptiOmlll)· under·developed nature of the State and its strategic importance for the counlry's north eastern region, the Committe~ hopes the Government will be stirred to action nt least during tht current year.

Nt::w Ut:t..m; A IIJ!IISI 22. 199(\

ASHOK MITRA. Clrmrmllrl,

Oepartmmt·Relmed Parl11mrenwrr Sramlins Commiuee on lndu.~rr.\".

ANNEXURE

M INUTES OF THE MEETINGS OF THE COMMTITEE

Il SECOND 1\-lEETING

The Committee met at lUX> A. M . on Thun.day. the 8th Augu\t , 1996 in Commiuee Room ' A'. Ground Floor, Pilrliamcnt House Annexc. New Delhi .

f'RES£1\T

1. Shn Ashok Mitra -- Chflirman

MEMBERS

RAJYA SABHA

2 Shri Rajubha• A. Parmar 3. Miss Saroj Khapan.Jc 4. Shri Ram Dcu Bhandari 5. Shri T.:'\1. Vc:nkall•dwlam 6. Shri Jay;~nl Kumar Ma.lhoutra

LOK SABHA

7. Shnmat1 .Jayawantilx:n :\-lchta S. Shn Rttlal Pd. Wrma 9. Shri Radha Mohan Singh

10. Shri Prabhu Dayal Kathena I I. Shri Nitish Bharadwaj 12. Shn Namdcvrao D1wathc 13. Shri Shyamlal Ban~iw:1 l

14 Shri Nawal Ki~horc Sharma 15. Shri Ud;~isinghrao Gaikwad 16. Shri K.H . Muniyappn 17. Shri Pradeep Bhatt<tcharyil 18. Shl'i 13. L. Sll;mkar 19. Shri Sunil Khan 20. Shri M. Ramananthan 2 I. Slui Alwndrao Adsul 22. Shri V Alag1risamy 23. Shri Darbara Singh 24. Shri Xavier An•kkal

SECRETARIAT

Shn Om Parka>h. D"'puty Secretary Shri Deepak Goyal. Under Secretary Shn Mom Raj Singh, Committee Officer

WITNESSF.S •

• • • Rcli.ucs co othc::r rnanch.

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II. Represenlali,es or Federation of Indian Chamber~ or Commerce and lndu~lr) (FICCIJ

I. Shri A.S. Ka,liw~l. Senior Vice·Prc~ident

2. Shn Pr~'hant Kumar Ui~wal. Senior ,\ ssi,t<mt Secretary

2. The Commiltcc heard ural evidence of the :tbove mentioned witnel!SCS in rc,pect uf Demands for Grant~ (1996-97) of tbc Mmi~tnes of Indus! I'). Steel and Mines fhe Chairman directed the wttnesses to comtder the poi llls rai~cd by the member~ during the meeting and send an updated note on the ><•me at the t:arliest and latest by the 16th Augu>l. 1991\ tor

Commiucc 's perusal .

A ve rba tim record of the evide nce W<l' kept

3. The Commillce then adJourned at 4. 10 ~.M. to llllo!ct ;1ga111 at 11.00 A.M. on Frid<~) the 9th Augus t, 1996

m THIRD MEETING

T he Committee met lit U.OO A.M. on Friday. the 9t)l August. 1996 in Commiuee Room 'A·. Ground Floor. Parliament House Annexc. New Dclh1.

PRESENT 1. Shrl A~hok Mitra -- Chairman

RAJYA SABHA

2. Syed Sibtey RHzi 3. Miss Suroj Kh~parde 4. Shri Ram Deo Bhand~ ri 5. Shri T.M. Venkatachalam 6. Shri Jayant Kumar Malhoutra

tOK SAlHIA

7. Smt. Jayawuntiben Mehta S. Shrt Rilla! Pd. Verma 9. Shri R<tdh<t Moh<tn Singh

lO. Shri Prabhu Dayal Katheriu II. Slui Nitis}l Bhawdwaj L2. Shri Nawal Kishore Sharma 13. Shri Udaisinghrao Gaikwad 1-1. Shri K..H. Muniy:tppa IS. Shri B.L. $hanJ...ar 16. Shri Sunil Khan 17. Shri Anandn•o Adsul IS. Siui V. Alngiri'<lllly l'.l. Shri Bhakta Chantn D<t> 20. Shri Darbant Singh 21. Shri J>.C. Thomas 22. Shri Xavier Arakkal

SECRETARIAT

Shn Om Parkash, 0<'puty Secretary Shri Oeepak Goyal. Under Secretary Shri 1v!om Raj Singh. Committee Officet

WITNESSES

I. R~presentatives of Ministry of Mines

l. Shri A .C. Sen, Secrcwry (Mines) 2. Shri M.L. MajumdHr, Additional Secret;Hy (Mine~) 3. Shri A. Prasad. A.S. & I'.A. Mini,tries of Steel &. Mines 4. Shri $. D. Stwrm;~. Joint Secretary (Mines) 5. Shri M. Mukherjee. Chief Controller of Mine,, lnd ian l:lure!tll of Mines

1()

6. Shri K. V.K. Se~havatram. C.M.D . Hindu,tan Zinc Limited 7 Shri K.N. Ghosh, C.M.D., Htndu\lan Copper Limited 8. Shri S.P. Rastogi. Acting C.}.1.D Mmeral Exploration Corporation Ltd. 9 Shri S.N Johri, C.M.D .. National Aluminium Company Limited

lO Smt. Usha Roy. C.M.D .. Bharat Alumtmum Company Limited ll. Shrt R. Gupta . M.D .. Bharat Gold Mine~ Limited 12. Shri Ramakrishna, Dy. Director Gcncn,l . Geological Survey of India

II. Representatives of Planning Commission

I Shri Ashok Basu, Adviser (I & M) 2. Shri P.N. Shali, Joint Adv1~c• 3. Shri R. Mandai, Joint Advi~cr 4 Dr Ratnakar Gcdam. Deputy Advi~er

2. l'he Committee heard oral evidc:m:.: of the above mentioned witne~ses in rc5pcct of Demand~ for Grants (1996-97) of the Mim,tries of lndustrv. Steel and Mines. The Cha~rman directed the witnesses to consider the potnt' raised hy the Members dunng the meeung and :.end an updated note on the same at the e;orlic't ;1nd latest b} the 16th August 1996 for the Comm•llcc·~ perusal.

A verbatim record of the ev1dence was kept.

3. The Committee then adJOurned at 4. 15 I'.M. ttl meet again at 11.30 1\.M. on Tuesday. the 13th August. 1991i.

' ~

I~

lV

FOURTH MEETING

The Committee met at 11.30 A.M . on Tuesday. the 13th August, 1996 m 'Main' Committee Room, Ground Floor. Parl iament I louse An nexe, New Delhi.

PRESENT

1. Shri Ashok Mitra -- Chairman

RAJYA SABHA

2. Syed Sibley Razi 3. Shri Rajubbai A. Parmai 4. Mi~~ Saroj Khapardt! 5. Shrimati Anandibcn Jeth;~bh;,i P:ttel 6 . Shri An il Kumar 7. Shri Jayant Kumar Malhoutra

LOK SABHA

8. Smt. Jayawamiben Mehta 9. Shri Ritlal Pd. Verma

10. Shri Prabhu Dayal Katheri:t 11. Shii Ananth Kumar 12. Shri Nawal Kishore Sharma l3. Shri Sanat Mehta 14. Shri Pradcep Bhattacharya 15. Dr. N. Subramaoyam 16. Shri B. L. Shankar 17 Shri Sunil Khan lH. Shri L. Adaikalaraj 19. Shri M. Ramananthan 20. Shri Bhakta Chardn Das 21. Shri J)arbara Singh

SECRETARIAT

Shri Om Parkash. Deputy Secretary Shri Dccpak Goyal. Under Secretary Shri Mom Raj Smgh. Committee Officer

WIT:"~ ESSES

• Representath es of Trade Unions

'

J. Shri B. D. Josh i, Gene ral Secret<try. A ll lndiu Trade Uniou Cnngrc~' 2. Shn K. L. Mahendra, Secretary. All India Twdc Umon Congre" 3. Dr. M. K. Pandhe. General Secretary. Centre ror lncli<lll 'f'rade Union 4. Shri Gopcsl1war , Gene ral Sccret:lry. lndi;~n N:,tionul Trade Union Congrc»

------• ••Relates to other 1nnncr.

II

12

5. Shri Rajiv RanJan. Advisor. Indian National Trade Union Congress 6. Shri Keshavbhai Thakkar. ~ember. National Executive. Bhartiya .\1;tzdoor Sangh 7. Shri Mukund Gore, All India Secrcltlry. Bhartiya Mazdoor Sangh 8. Dr. Shanti Patel, President, Hind Mazdoor Sangh 9. Shri A . D. Nagpal. Nauonal Secretory, l lind Mazdoor Sangh

2. The CommilleC hcurd oral evidence of the ahovc mentioned witnesses m respe~:t nl Demands for Grants ( 199o-97) of the Mmistrie> of Industry. Steel and Mine>. the Ch"irnl<ln directed the witnC~)C' to consider the points raosed by the Members durong the meeting ami send an uptfutcd note on the same at the earliest hucst by the 20th Augu,t, 199o for Committee's perusal.

A verbatim record of 1h~ evidence was kept.

3. The Commollcc then adjourned ut 6.45 I' .M. to meet ag;un at 11.30 A.M. on Wednesday. the 14th August, 1996.

VI

SIXTH MEETI:>IG

The Committee mel at 11.()() A.M. on Monday. the !9th Aug,us\. 1996 in Commiuce Room ' A', Ground Floor. Pa rliament House Annexc. !>lew Delht.

PRESENT

I. Shri Ashok Mitra -- Chmrma11

RAJYA SABHA

2. Shri Raj ubha i A . P<tm1ar 3. ~lis~ SaroJ Khaparde 4. Shri A ni! Kumar 5. Shri J;tyant Kumar M:tlhoutra

LOK SABHA

6. Shri Ri tlal Pd . Vermu 7. Shri Prabhu Dayal Katheria 8. Shri Namdcvrao Diwathe 9. Shri M. K Patil 10. Shri Nawal Kishorc Sharma 11. Kumari Frida Topno 12. Shri B . L. Shankar 13. Shri Sunil Khan !4. Shri M . Ramananthan 15. Shri Bhaktll Charan Das Hi. Shri Darba ra Singh t7. Shn Xavier Ar:tkk31

SECRETARIAT

Shri Om Parkash. Deputy Sccrewry Shn Dcepal.. Goyal. Under Secrcl.try Shri Mom Raj Singh. Comnmtce O ffit:cr

WITNESSES

I. Rcpre~entati >cs of ASSOCHA;\1

!. Dr B.K Modi. Clwirm:m. Darcct raxc' Commiuc~ 2. Shri M. H . Dalmaa. Dcrut) SctrCWr}·Gcnt·wl '· Dr. S . R. Bharucha. Chad Economic A<hi"H

Tl . Reprcsentnlives of C.l.l.

Shri Subodh Dhargava. Ch.urman !"otttvnal I'"" Furw on Admani>lr;tlive Reform'

14

2. Shri Vijay Kapur. Chairman, Talecom CommiHcc 3. Shri Ranjit Puri. Chairman, Customer Focu~ & Markettng Commiuee

2. • •

3. The Commincc, thereafter, heard the oral evidence of the ubovc: mentioned witnesses on the performance or industrial ~ector in general and the impact of recem budget proposals relating to the Ministries of Industry, Steel und Mines on industrial and economic growth in particular.

A verbatim record of the evidence was kept.

4. The Commiuce then adJourned at 6.30 P.M to meet again at 11.00 A.M on the 20th August, 1996.

vn

SEVENTH MEETING

T he Committee met at 11.00 1\.M. on Tuesday, the 20th August, 1996 in Commim:c.: Room 'A', Ground Floor, Parliament House Annexe . New Delhi.

PRESENT

1 Shri AshoJ... Mitra -- Chairman

RAJYA SAlliiA

2 Syed Sibtey Razi 3. Shri A nil Kumar 4. Shri Jayam Kumar Malhoutra

LOK SAIHIA

5. Shrimmi Jayawantiben Mehta 6. Sh ri Prabhu Dayal Katheri;• 7. Shri Namdevrao Diwathc 8. Shri M. K. Patil 9. Shri Shyamlal Bansiw;~l

10. Kumari Frida Topno II. Stu i K H. Muniyappa 12 Shri B. L. Shankar 13. Shri Suml Khan 14. Sh11 M . Ramananthan 15. Shri An:mdrao A(hul 16. Shri BhHkta Charan Das 17. Shri Darbara Singh 18. Shri P. C. Thomas 19. Shri Xavier Arakkal

SECRETARIAT

Shri Om Parkash. Deputy Secretary Shri Dccpak Go)•al. Under Sct:rctary Shri 1\Jom R:•J Singh. Comminec Officer

2. The Cornmiltcc considered the contents of the Draft Report rel~ting to the Demands for Grants ( 1\196·97) of the ~imstry of Mine:..

3. The Committee Lhen adjourned at I 2 .. 1(1 t•.M. h> meet again Jt II (XI " " on the 2 bt Augu\l. 1996.

l:'i

L'< !'-'!NTH MEETING

The Committe<: met from 11.00 ,,.M. to 1:!.45 I'.M. und <~gai n from 3.00 t'.M. to 3.20 t•.~ t on Thursday. the 22nd Augu,t . 1996 in Committee Room ·A·. Ground Floor, P,trliamcnt House Annexc. New Delhi.

PRESEl'o'T

l. Shri A~hok Mitra -- Chutrma11

RAJVA SABHA

2. Shri Maurice Kujur 3. Syed Sibtcy Razt 4. Shri Govindrao Adik S. Shn Rajubh;u A. l'armat fi. Mis~ Saroj Khap;trde 7 Shrimall Anandiben .letlwhhw Patel 8. Shri Ram Oco 13hand<tri 9. Shrt Ami KunHtr

10. Shri T.M. Venkawchalam 11. Shn Jayan t Kumar Malhoutra

LOK SABHA 12. Smt J;tyaw;tntibc:n Mehta 13. Shri Ritlal l'tl. Yer111a 1-l. Shri Prabhu Da)•al Katheri<t 15. Shri Nmndevrao Diwathc 16 Shn M. K. l'atil 17. Shn Shyamlal Ban~twal 18. Shu N!Lwal Kishorc Sharma 19 Kurnari l'rida Topno 20 Shn Udlly~inglmto Guikwad 11. Shn Pradc~p Bhatta~harya 22. Shri Sunil Khan 23. Shn An;llldrao Atlsul 2.1 Shn V, Alagiri\am) 25. Shd Bh;tkUI Charun Das 26 Shri DarbJr<• Singh 27. Shri Xavtcr r\rakkul

SECRETARIAT

Shn. Orn Pr;tka'h . Deputy Sccrctut y Shri Dc:epak Goyal. Under s~·uct;tr~

2. T he ConH11t liCc ccNtlcrcu antl appro.wcu the Orah Report on the Demanu .• fot Granb for the Mini'lr~ of Mme' for liJ9(\.tJ7 Cltot tnnan wa~ authori>cd l\> (imtliw th~·

Report for ~ubmission lo Parliumcnt Ill til~ light c>t suggc,trons offo:retl b~ 1\lembcr-

·'· ol. The Comtntttc:c then adJourned :.1 :l.20 ''·'" tu tncc:t ~•g<tin at ll.(Xl ,,.~1. on the 23ru August, 1996.

• ... Hclatc~ to lHhCI rnattL'f

16

X

TENTH MEETING

The Committee met at 11.00 A.M . on Friday, 23rd August, 1996 in Commiuce Room ·A·. Ground f'loor. Parliarnenr House Anncxc, New Delhi .

PRESENT

1. Shri Ashok Mi tra--Chairman

RAJYA SABHA

2. ·Shri Maurice Kujur 3. Svcd Sibtcv Razi 4. Shri Govindrao Adik 5. Miss Smoj Khaparde 6. Shrim<Hi Am111dibcn Jethabhai Patel 7. Shri T.M. Venkatachalam 8. Shri Jayant KumaJ Malhoutra

LOK SAllHA

9. Sbri Ritlal Pd. Verma 10. Shri Radha Molwn Singh 11. Shri Prabhu Daval Katheria 12. Shri Namdevrao' Diwathc )3. Shri M.K. Patil 14. Shri Nawal Kishorc Sharma 15. Kumari Frida Topno 16. Shr i Udaysinghrao Gaikwad 17. Shri Pradeep Dhauaclwrya 18. Shri Suni l Khan 19. Shri Anandrao Adsul 20. Shri V. A1u!\i rise~mv 21. Shri Durbar~ Sing!~ SECRETARIAT

$lu i Om Parkash . Deputy S~!crctury Shri Deepak Goyal. Under Secretary

2.

3. The Chairman was authorised to nomina tc Members who arc to presen t the Reports of the Commiuee on the Demands for Grants of the Ministr ie' of Mines. Steel ;rnd lnclu>trv in the Lok S~blla as well :1~ in the R~jy;t S:thha. ·

4. It was dcciclcd that the Committee wi ll meet again in IW\1 ~~ssi11 11~, ll!Orning ant! afternoon, on October 9, 1996 to discuss its ftnur·c progt':11nn1c nf work.

5. The Committe.e then adjourned "t 12.-15 r•.M.

17