state of minig in india

7/31/2019 State of Minig in India

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ContentsINTRODUCTION ............................................................................................................................................. 4

THE MINING ECOSYSTEM .............................................................................................................................. 4

RICH LANDS, POOR PEOPLE: THE FACT FILE.................................................................................................. 6

THE MINING INDUSTRY AND ITS ECONOMICS .............................................................................................. 7

The history ................................................................................................................................................. 8

Mineral production in India ...................................................................................................................... 8

Small scale mining ..................................................................................................................................... 9

Mining and economy ................................................................................................................................ 9

PEOPLE AND THE ENVIRONMENT: BEARING THE BRUNT OF MINING ....................................................... 10THE CHALLENGES OF GOVERNANCE: GREY AREAS IN THE LAW ................................................................. 16

The loopholes:......................................................................................................................................... 16

Various legislations:................................................................................................................................ 17

Mining at what environmental cost:........................................................................................................ 18

Environmental legislations: ......................................................................................................................... 19

Environment Impact Assessment:........................................................................................................... 20

Afforestation: inefficient formality ......................................................................................................... 20

Pricing a forest: ....................................................................................................................................... 21

Mine closure: .......................................................................................................................................... 21

Employment and mining ......................................................................................................................... 22

REHABILITATION: THE REGULATORY ROADBLOCKS ................................................................................... 22

Laws related to mining ................................................................................................................................ 24

Legalizing the encroachers .......................................................................................................................... 25

The question of compensation .................................................................................................................... 26

STAKE HOLDER ANALYSIS ............................................................................................................................ 27STAKE HOLDERS POINT: MR SIDDHARTH MAHESHWARI, GM MARKETING, JSW STEEL. .......................... 28

In Orrisa: ................................................................................................................................................. 28

SYSTEM INTERRELATION ............................................................................................................................. 30

THE ISSUE OF COALGATE ............................................................................................................................ 31


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EXCERPTS FROM: REPORT OF THE CHIEF MINISTERS COMMITTEE FOR DEVELOPMENT OF JHARKHAND:

TRANSFORMING JHARKHAND, THE AGENDA FOR ACTION ........................................................................ 32

Section 8.4: Increasing the Efficiency of InputsMines.................................................................... 32

Known barriers(1) delays in obtaining mining approvals and clearances; (2) ................................ 32

Successful mining laws need to be designed to: ................................................................................. 33

Challenges:.......................................................................................................................................... 33

Why the Governments fail to compensate the post mining conditions: ............................................ 33

Regulatory flaws: ................................................................................................................................ 34

Corruption:.......................................................................................................................................... 34

Mismanagement:................................................................................................................................. 34

CONCLUSION ............................................................................................................................................... 35

REFERENCES ................................................................................................................................................ 36

TABLE OF FIGURES ...................................................................................................................................... 36


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INTRODUCTION

Across the world, the mining industry has been hard selling dreams of development, employment

and growth. It has been promoting the idea that mining will unleash growth in the backward

areas and will pull the indigenous communities in the mainstream, thereby improving their lives

and livelihoods. The book review on Rich lands, poor people was selected as a topic for this

term paper due to the versatility of mining as an issue and the magnitude of its impact and

consequences. In todays world we cant imagine a life without the mines and minerals which is

leading to a situation which is unsustainable. The resources are depleting, the ecosystem is

getting violated, and human health is affected and so on. The pros and cons are endless in this

regard. The actual habitats are displaced in the name of development by some and the sometimes

they are being deprived from the taste of development in the name of preserving their culture by

the other. The mining industry in the Indian context is the victim of poor regulation, lack of rules

and norms and large scale organized corruption. This industry is full of potential and scope but is

being exploited at the costs of human and environment. The question is not on whether to give

up on mining as an activity but the question is how mining as an essential activity in modern

times can be done sustainably with positive impact on the people, environment and the human

ecosystem.

The mineral sector in India is booming. The demand in china is driving up prices to new heights.

The government has already opened out the sector to private players. The contest is on. Ranged

on one side are all the interests that define the incredible India dream and on the other side are

people whose land is up for grabs, whose survival depends on the forests which will be needed

for mining, whose animals graze on the lands where mining rejects will be dumped, whose water

comes from the hills which will be blased. The life of these people is in their environment and its

degradation is their devastation. This book studies the question of balance in this challenge. We

know that we need a new contract. How we get is is the only question.

THE MINING ECOSYSTEM

A fast growing country has a voracious appetite for resources. Almost all countries depend on

their natural resource wealth to fuel the industrial growth in their economy. Minerals, as an

important part of the natural resource wealth, are essential for a nation which stands poised on

the threshold of a promising future and must be extracted. However, the distinction between


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growth and development in the economic sense must be kept in mind while dealing with the

extraction of minerals.

With over 20,000 known mineral deposits and recoverable reserves of more than 60 minerals,

India is a mineral rich country. But the small truth that has been ignored or misunderstood overthe years is a simple fact that the mineral wealth of India lies under the same lands which hold

most of Indias biologically diverse forests and water systems. Also, the most poorest and

marginalized people inhabit these areas.

Figure 1: The mineral ecosystem

The mineral ecosystem consists of various stakeholders who include people (tribal people,

scientists, academicians, doctors, pressure groups etc.), government (administration, politicians)

MINERALS

PEOPLE

WATER

SYSTEMS

FORESTS

BIODIVERSITY

INDUSTRY

GOVERNMENT


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and industry (business houses, mining companies and contractors). All these have their own

vested interests as far as their relationship with the land that holds minerals is concerned. Some

of these relationships are good for these lands, for example the relationship between tribes and

the forest lands. However, most stakeholders have an exploitative relationship with the lands that

hold minerals resources of this country. In the name of extracting minerals for fuelling industrial

growth, forests are razed, waterways are polluted and clogged, farmlands transformed into waste

lands and people are evicted from their lands with little promise of compensation or

rehabilitation.

The book Rich lands, poor people tries to analyze the mineral ecosystem of India and the role

of various stakeholders in it. It also tries to find the answer to the question that are the immense

costs of mining commensurate with the development gains that mining promises and which

governments harp on?

RICH LANDS, POOR PEOPLE: THE FACT FILE

The prime contributory factors for the progress of any nation are the fields of agriculture,

forestry and mining. Out of these three, mining is a process that is finite. Minerals once

consumed cannot be regenerated over a long period of time. More importantly, the devastation of

other related processes in the mining ecosystem due to heavy and unsustainable mining has also

caused irreversible damage. Mining was envisaged as a tool for bringing prosperity to the poor

people and not as a tool for vested interests to make exorbitant profits without giving any

developmental benefits to the original inhabitants of the mine lands. India is not the only

country where mining is linked with poverty and poor developmental outcomes. A study by the

world banks shows that the resource rich economies exhibit weaker institutions compared to

resource poor countries. This means that institutional weakness and political economy are the

main reasons behind the resource curse. In India, of the top 50 mineral producing districts,

almost half are inhabited by tribals. The three tribal dominated states of Odisha, Chattisgarh and

Jharkhand are the most productive mineral bearing states as well, together accounting for 70% of

Indias coal, 80% of high grade iron ore, 60% of bauxite and almost all of chromite. An

estimated 1.64 lakh hectares of forest land has been diverted for mining in India and this has


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caused irreparable damage to the tribal population, biodiversity and the water systems. In

Jharkhand alone, indigenous groups comprising 85 to 90 percent of the total population of the

state have been worst hit by large scale exploitation of natural resources through the

development of mines and exploitation of forests. Over 49 localities have been declared unsafe

for human habitation in the Raniganj coal field alone. The role of mining changing the

hydrological profile of a region is also being increasingly acknowledged and debated. About

66% of the total land area of the upper Damodar valley has been affected by different forms of

erosion. The banks of Mahanadi in Orissa also have bauxite on its banks and the local

communities have fought against BALCO to protect the Gandhamardhan hills from where a

number of springs feed the Mahanadi.

All this points to an incontrovertible truth that mining, essential as it is, is not a simple dig and

sell proposition for a country like India. Most of the political and administrative power goes

into promoting and facilitating extraction of these resources instead of focusing on the

development of the area. Orissa, Jharkhand and Chattisgarh are a strong case of such policies and

institutional fallacies.

THE MINING INDUSTRY AND ITS ECONOMICS

In past years there has been a great surge in the demand of minerals and coal globally. This has

made it imperative that global trend in mining skyrockets. In India too, the mining is taking place

like never before. And the incentive of that mining is lucrative exports to China. Over the years

we have witnessed that mining is considered to be a tool of development by the corporations and

in most cases by many governments. It comes with a promise of providing employment and the

much necessary boost to manufacturing industry which may end up in providing wings to the

economy of the country. But are these claims true? Does the mining contribute to mining as

much as it is touted to do so? Are we being acting blind to the other costs of mining? Are the

mining laws enough to deter the unlawful and blindfold mining? The chapter number two of the

book Rich land poor people provides us with some answers to above questions. The book also

talks about the policies of the government and the laws which have been created to regulate the

mining.


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The History

On the eve of independence, the annual mineral production in India was a mere Rs 58 crore. The

decision of the formation of Indian Bureau of Mines (IBM) was taken in the Mineral Policy

Conference held in January, 1947. After independence, a separate ministry was formed for coal

and a ministry for other minerals strengthening the position that coal as a resource enjoy.

Following the economic reforms of 1991 which promoted Liberalization, Privatization and

Globalization (LPG), in 1993 National Mineral Policy (NMP) was formed.

Initially 50 % Foreign Direct Investment was allowed in the industry. However, in February,

2000 the FDI limit was increased to 74 % and in February, 2006 it was increased to 100 %.

The Mines and Minerals Act, 1957 was amended 4 times in1972, 1986, 1994 and 1999. The first

two amendments focused on increasing government control but the last two concentrated on

bringing private investments to the mining sector. From 1993-94 to 2003-04, the mineral

production has grown at a compounded annual growth rate of 10.7 %. Even after such an

increase in production, the appetite of the industry has

not been satisfied which resulted in doubling of

minerals and metals prices during the period of 2002

to 2005?

Mineral production in India

Public sector possess 25 % of the total operating

mines in the country but produces 75 % of the total

value of mineral production in the country. This again

proves that the public sector is still equipped with better technology than the private sector.

India is the exporter of chromites and bauxite with 17.7 % and 7 % global production comingfrom India. In case of fuel minerals, India has 7.6 % of global coal reserves which are nearly

sufficient to meet domestic needs. Petroleum and natural gas reserves are limited. Of the metal

ore mining, 75% is iron ore.

In the last 10 years or so, we have

not been allowed to hire technical

and managerial level staff. The

current situation is that there are

not enough qualified officers to

take the lead. We, therefore, are

an organization which is heavy at

the bottom and empty at the top,

:-Senior officer, CIL


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Small scale mining

It is considered to be more profitable and highly productive.

It employs more number of people as the new machine

technology is costly enough for small scale mining. On the

other hand some people also believe that small scale mining is highly polluting, unsafe and

disruptive. There also have been incidences of women labor exploitation and child labor.

Mining and economy

Figure 2:Mining contribution to GDP

Mining totals up to only 2.2 % of the GDP. As we can see from the graph, the contribution of

mining to GDP was highest in 1990-91. But after the economic reforms it has dipped. Petroleum

constitutes the majority of the mineral imports taking place in India. India has also started the

import of coals. Today India imports 5 % of the coal used in the country.

Three reasons for this deficit have been identified:-

On an annual basis, we are still a

coal-surplus country and imports

hide this fact

:-Senior officer, CIL


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a) In coastal areas it is cheaper for countries to import coal from Indonesia and SouthAfrica.

b) Indias coal is less efficient and high in ash content.c) Capacity constraints in public sector coal companies.

PEOPLE AND THE ENVIRONMENT: BEARING THE BRUNT OF MINING

Mining is an environmentally destructive activity. Historically mining has seldom benefitted

those who are most affected by it. Be it displacement, botched rehabilitation efforts, ecological

damage or pollution the weakest sections of society bear the brunt of it.

Figure 3:Production , demand , imports and closing stocks

Figure 4:value of imports


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Displacement and rehabilitation:

Involuntary displacement creates immense psychological trauma due to disruption in the

established lifestyles of the people displaced. Loss of production systems, close knit kinship

groups, traditional sources of employment, market links and customs related to food securityensure that the people remain impoverished even If they are compensated with cash. Walter

Fernandes in his book Rehabilitation Policy and Law in India: A Right to Livelihood writes that

many socio-economic surveys and other studies clearly establish that it is invariably tribal and

poor people who suffer, whereas the fruits of development are enjoyed by richer classes and

urban populations.

The shift from underground coal mining to open-cast mining has contributed to a substantial

number of peoples displacement. The likelihood of displacement and resettlement from mining

increases as rich mineral deposits are found in areas with relatively low land acquisition costs,

high population density, poor land tenure definition, politically weak and powerless populations

and indigenous communities.

In India, legal claim to the land is often not available with the tribals and scheduled castes, which

absolves the government from providing them any compensation. N C Saxena estimates that

only 29% of those displaced by development projects have been rehabilitated so far.

Types of compensation:

Cash compensation: Often seen as a preferable option since it gives people the option to improve

their economic status by investing the money. However the packages offered in the Land

Acquisition Act often do not reflect market prices for land and are totally inadequate for

restoring and enhancing standards of living. Rampant corruption further ensures that most poor

and ignorant oustees end up getting a small part of their compensation or sometimes no

compensation at all. Often on receiving a large amount of money the receivers fritter it away.

Land for land: This form of compensation is the most preferred option as it allows the ousted to

continue with their occupation. However this is rarely done in India since land is scarce.

Employment: Employment it given to at least one family member enabling the people to re-

establish themselves in lesser time. Besides this they might also get free housing travel

concessions and education for their children. But due to the demands of globalization and


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rightsizing few companies prefer this alternative. Most of these people are unskilled hence the

companies which want skilled workers do not hire from the local communities.

Self-employment: More projects nowadays are attempting to provide self-employment as land or

jobs can no longer be guaranteed. Displaced people are reluctant to accept self-employment as itinvolves drastic changes in their lifestyles and occupations. Another problem is the project

affected families are seldom consulted during development and implementation of the packages.

Destruction of forests

Much of our countrys mineral reserves are in areas that are forested and have marginalized

people living in them. Mining and quarrying has already taken a huge toll on our forest area.

Every year the rate of destruction of forest lands is increasing with no signs of slowing down.

During 1998 -2006, 216 mining projects were granted forest clearance annually- as against 19

clearances annually during 1980-87.

The tribal population relies on the forest as a safety net when times are tough. The forest

provides them with food during the lean season and they depend upon forest produce to meet

their day to day needs. With the destruction of forests the availability and productivity of the

ecosystem is depleted leaving the tribal population more vulnerable to natural disasters and

climate shocks. Examples of forests being destroyed for mining abound our country in plenty

The Jamwa Ramgarh wildlife Sanctuary of Rajasthan, The Bhagwan Mahveer wildlifesanctuary of Goa and Narayan Sarovar Wildlife Sanctuary of Gujarat are a few of many. Even

the Gir forest the last refuge of the Asiatic Lion has some 100 odd mines in a 10 km radius

within the protected area.

The Wildlife Protection Act of 2002 has no teeth to curtail the abuse of forestland. Under the

FCA, 1980 a prior approval by the government is all that is required to change the status of

reserve forests or protected forest land for non-forest uses.

Water depletion:

Mining consumes huge quantities of water and almost all mining areas have reported lowering of

water table and depletion of ponds, lakes and streams. Annually limestone mining consumes 4.25

Million Tonnes of water, despite the fact that limestone mining is the least water intensive


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mining. Continuous dewatering by underground mines also affects groundwater. These mines

pump out millions of litres to drain mine galleries and release water into nearby watercourses.

Large and deep open-cast mines are even more catastrophic. Deforestation around the mine

changes the water holding capacity of the area. Streams dwindle, perennial streams have turnedseasonal, while many others have receded.

Mineral based industries like thermal power plants also consume a lot of water. TTPs use as

much as 35,157 MT of water per annum or in other words the daily requirements of more than

1,751 million people in a year. Most of the water is discharged as waste water into ponds and

streams. Similarly, every tonne of steel manufacturing in India requires about 10-80 tonnes of

water. The sector consumes 516 MT of water annually. The cement industry in contrast

consumes only 0.5 MT per tonne of product. But the sheer number of cement plants in the

country means up to 39 MT of water is used up every year. Most cement plants tap groundwater

and most cement plants are located in water-scarce areas. Initiatives by the companies to supply

water have not gained traction with the public.

Mining and pollution:

The trend towards bigger mines has resulted in increased pollution of air, water and soil in

mining areas. The type of mining dictates the effect it has on environment. Generally surface

mining has a much greater impact on the environment than underground mines. Large amountsof vegetation, soil and rock must be removed to expose the ore. The removal of overburden

physically alters the landscape and disrupts the eco-system processes. Once removed improperly

contained or stabilized piles of stored waste rock are prone to erosion threatening local soils and

waterways.

Mining of metals poses an additional threat due to the nature of waste created in the process.

Toxic chemicals used in the extraction and processing of ores invariably damage the soil and lax

safe disposal methods followed by the industries in India add to the problem. The sulphidessurrounding metal ores react with air and water to produce sulphuric acid which leaches into the

soil making it unsuitable for plant life. Mining in forest area can devastate local biodiversity,

water and soil and also change the micro-climatic conditions. Mountain-top mining not only

changes the typography and aesthetics of the area, but also impacts the local hydrology and water


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sources extensively: local streams become its first causalities. Good mining practices such as

storing and preserving topsoil for future use are not followed by Indian mining companies.

Only 0.00001 per cent of gold ore is refined into gold the rest is just a waste. For every tonne of

coal produced 3-4 tonnes of waste are generated. This waste called overburden is poorlymanaged by Indian mines, the waste in most cases is just piled into huge heaps on unlined

surface. The management is not accountable for run-off or particulate emissions. Waste rock

which can be used to refill excavated land is rarely used for that purpose.

During grinding and milling waste is generated in slurry form called tailings. Safe disposal of

tailings is a major concern in India. Most companies flout the legal requirements for safe

disposal of tailings. The impoundment structures used to hold the tailings are also not upto

international standards. Failure of such structures often leads to great suffering of the people

living around the vicinity.

Rajastan generates 5-6 MT of marble slurry every year. The states marble cutters and polishers

dump the slurry into open pits instead of designated ares causing a lot of pollution. When

dumped on land marble slurry decreases the porosity of the soil, water absorption etc. When

dried these particles cause air pollution.

Various types of pollution mining causes

Water Pollution

1. Acid mine drainage: Large quantities of rocks containing sulphides react with water andair to for sulphuric acid leading to soil leaching.

2. Heavy metal pollution: Caused when metals such as cobalt, zinc , lead contained inexposed rock or in underground mines come in contact with water

3. Pollution from processing chemicals: Occurs when chemical agents spill, leak or leachfrom mine site to water bodies.

4. Erosion and sedimentation: Mining opens up the soil and denudes vegetation henceleaving the land open to unchecked erosion

Air and climate

1. Dust emission: Particles like asbestos and silicon cause diseases like asbestosis, silicosisand particulate matter settles in the lungs of the people in the vicinity


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2. Methane emission: underground coal mines release methane from the coal seams.3. Micro climate change: Destruction of forest cover alters the climate in the surrounding

areas causing havoc to farming.

Issues in mine closure in India:

India does not have a detailed inventory of its abandoned mines. There are no estimates on how

much it costs to undertake proper mine closure in India. This is a good indicator of how pathetic

the situation is in the country. According to the website of IBM there are 296 abandoned mines

of major minerals in the country. Mine rehabilitations are completely ignored in India. It was

only in 2003 that to obtain a mining lease a mine closure plan was made mandatory. However

this is only from mining major minerals. Coal mines do not require a mine closure plan. Mine

closure plans that are being cleared today are a far cry from international standards. Socio-

economic impacts are not even addressed in the mine closure plans. When mines shut down

workers lose jobs, ancillary economic activities around the mine close down demolishing the

economy of the community.

Safety issues:

According to ILO worldwide mining sector deaths account for 5% of worker deaths though the

industry employs less than 1% of the workers Mines are prone to fire, cave-ins, explosions and

land subsidence. In 2005 coal mines accounted for 89% of accidents, 69% of deaths and 90% ofthe total incidents in the Indian mining industry. Mineral disease like silicosis, asbestosis, coal

workers pneumoconiosis (CWP) are accepted as occupational hazards in India.

Hearing impairment, skin diseases, stress, vibration damage, chemical poisoning, radiation are

the other risks mine workers face in their jobs.


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THE CHALLENGES OF GOVERNANCE: GREY AREAS IN THE LAW

The challenges in the governance of the mining areas are considerable. The book explicitly

explains various legislations in India .It lays emphasis on the issues like multiplicity of agencies

and confusion arising out of it, how companies easily violate the laws and get away without

being questioned. It is surprising to read that India did not have mandatory mine closure

regulations till 2003 and still the law enacted is full of loopholes. The financial surety asked for

mine closure is too low to be a deterrent for non- compliance. The report explicitly covers every

aspect of the legislation, it mentions the Acts drafted and passed by government for protection of

environmental assets. Since for the tribal people their most important resource for livelihood is

their land their forest which is taken away for the mining purpose by the government for sake of

economic development of the country. But the question which report throws light on is the

loopholes in law. In each and every law there are half -hearted provisions for protection of the

forest, people and environment. The laws are framed with such combinations of words that these

can be easily by passed by companies for sake of saving money.

The issues like mine closure have their relevance only on the paper, practically the norms are not

followed. If one is to conduct a stake holder analysis of the policies one would conclude that the

stake holder most affected is given least importance. In such a condition of prevalent ignorance

how one can expect that situation will not get worse in the terms of environment and condition of

the local community will remain fine.

The loopholes:

The RLPP mentions that environmental law under

Mineral Conservation and Development Rules, 1988

treats every mine as a special case but it says ...wherever

possible, the waste rock , overburden etc shall be back filled into the mine excavations with

a view to restore the land to its original use as far as possible. The wordings used in the

legislations leave ample space and room for the companies to escape the law.

The laws are there, but the

details are either missing or

fuzzy. The institutions exist,

but so do complete confusion

about their responsibilities and


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The institutional confusion prevails and there is no clarity that who is responsible for what. The

Indian bureau of Mines (IBM) and State Pollution Boards are responsible for monitoring

environmental aspects of the mining. There are other central agencies like MoEF who also look

into clearing of mine plans and closure plans. Both IBM and MoEF demand an Environment

Management Plan, but one normally does not accept the EMP submitted to the other. Mining is

prevalent in ecological sensitive areas although to keep a strict eye on the allocation of mining

site central government directly looks into the matter. Wildlife sanctuaries and reserved forest

have been notified to allow mining. The most critical challenge before the law is to create a

practices of sustainable mining, it has to be taken care that mining does not destroys ecosystem

in the local area and well-being of the community is ensured.

Various legislations:

1. MMDR Act 19571:This law constitutes basic laws governing mining sector in India.

2. The Mines Act 19522 (modified 1983):An act to amend and consolidate the laws relating to the regulation of labor and safety in

mines .

3. Mineral concession rule 1960:Outline for obtaining license and mining lease, impact assessment of mining activity on

the forest and environment around it.

4. Mineral Conservation and development Rules 1988:Lay down guidelines for ensuring mining on scientific basis while conserving

environment and nature at the same time.

RLPP further mentions that the 4th and 5thrule have a chapter devoted to environment ,

there are 11 provisions pertaining to storage utilization of topsoil etc , but still there are

major lacunae in these rules with respect to environmental protection.

1http://mines.nic.in/mmrd.html

2http://www.coalindia.in/Documents/MineSafety/File_No_3_Mines%20Act.pdf


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An example stating excerpts from the lawHolder shall take all possible precautions for

the protection of environment and control of pollution while prospecting, mining,

beneficiation or metallurgical operations3

the usage of broad meaning words and

absence of clear set of instruction makes it easy for the miners to use the law in their

favour.

Further there has been no clear set of rules defined for reclamation of the of the land and

which is the best practice .

On mine restoration the law say that wherever possible the waste rock, overburden etc

shall be backfilled into the mine excavations with a view to restoring the land to its

original use as far as possible4

With respect to blasting, the rules are even more circumspect .They do not specify the

distance from a habitation at which blasting can be conducted. They only say that the

company should make provisions to minimise ground vibrations. The permissible limits

for noise and ground vibrations are not fixed, and vary from mine-to-mine.5

One gets a perception that how the laws have been framed with half heart, one wonders

that even after 55 years of independence we as a country are not able to frame a law with

no loop holes , implementation becomes more murkier when there is no clear set of rules

and a defined authority . In situation like this only blame game is what is supposed to

happen.

One agency points finger towards other and the show goes on.

The ultimate loss is caused to the pocket of the country and an irreparable loss is done to

the local people and environment. The question which disturbs my mind is what is cost of

our countrys natural resources and its people life and well-being.

Mining at what environmental cost:

The facts and data presented by the RLPP reflects the degrading condition of air quality

in the districts of Jharia , Raniganj , Bokaro . The level of SPM in air is 430

3RLPP :page 279

4RLPP :page 279

5RLPP :page 279


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g/m3(annual) against safety norms of maximum limit 140 g/m3. Similar is the

condition of the different other pollutants like RPM , 215g/m3 against 60 g/m3 , SO2

,80g/m3 against 60g/m3.

The report also mentions tolerance standards for:

1. Effluents from coal mines.2. Waste water discharge by industry3. Vibrations due to blasting.

Although it has been mentioned that what should be the current level of existing

measures, it is not mentioned that what are the permissible limits.

Environmental legislations:

The report mentions and criticizes that , when it comes to environment a large number of

resources have to be taken care of while drafting laws , the laws should strict enough to prevent

natural resources like water bodies, forest, natural habitat of wild animals and tribals . The

RLPP mentions following given acts in India:

1. The water prevention Act 1974, amended in 19882. Air prevention Act Act 19813. Environment protection Act 19864. The forest Act 19805. THE WILDLIFE Act 1972

Although there are laws but as mentioned earlier their implementation is a question to be worried

for. The SPCBs try to speed up process of allocation of mines rather than taking into account

their environmental impact.

Report mentions example of Orissa where there are 300 official mines in state but only 172 of

them have been covered under the laws. Even state owned Orissa Mineral Corporation operates


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without necessary consent.The report further emphasizes the necessity of a strong enforcement

system. Without a serious deterrence for non-compliance there will be no or little enforcement of

the law.

Environment Impact Assessment:

The report draws your attention on how the environmental clearance procedures are flaw full

designed. The people who are affected by mining have no say in the process right from the

inception of the project.

Another controversial aspect of the law is that the EIA report is prepared by a consultancy

commissioned by the project proponent. The agency thus become a service provider and thus is

no longer an impartial body.

Afforestation: inefficient formality

The forest and wildlife act binds mining companies to pay for purchase of an equivalent area of

non-forest land as near as possible to the site of diversion, or twice the degraded forest land to

the forest department with sufficient funds for compensatory afforestation which is then declared

as protected forest. This policy has been widely criticized because compensatory forest cannot be

a replacement of natural biodiversity which prevailed in that area.

However many states have not been able to complete the quota of compensatory afforestation.

There are many other provisions in the act like EIA is only required for projects above 20 ha of

area in plains and 5 ha in hilly areas. The question is why it should not be compulsory for all the

projects.

Despite all the efforts made in the form of laws, acts etc none of the areas remains sacred on the

other hand planning commission recommends opening up of more forest for the mining activity.

The situation gets more confusing when there is lack of clarity in the mission on our mining

policy, there are agency to safeguard the environment from side effects of mining and on the

other hand other pushes for more exploitation of the resources.

The policy framed by the intellectuals doesnt evaluate each stake holder rights; most of the

policies in some or the other way by passes the issue of the environmental impact of mining.


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Pricing a forest:

Finally a brilliant idea struck in mind of the policy makers and Supreme Court of India set up an

expert committee to identify the parameters for evaluating NPV to be compensated for the

diverted forest, but question is, is the money right replacement for the socio economic stress

which displacement causes to the local population. The committee was able to derive how much

should be paid per ha, when it should be paid , what has to exempted and included.

Mine closure:

Finally in 2003 government realized that there is

requirement of mandatory closure process for mines. It

took more than 55 years for government realize this

issue, on international front countries like America has taken these issues with an iron wrist.

While if we discuss the issue in India none of the closure plan discusses pollution control or

remediation the assumption, almost, is that there is no likelihood of pollution once the mines

are closed.

The ugly and extremely harmful waste is not even discussed. The waste created by these mines

not only contaminates the local water bodies and underground water table but has a potential to

wipe out human population from the area. The places like JADUGUDA , CHAIBASA are

experiencing threatening conditions to the environment and the local people have to pay the

price, the price is their health .

Government has decided through the closure policy the monetary assurance which company is

required to pay for different category of mines. According to the guidelines issued the closure

plan should address the issues of a.) the environmental issues ,b.) the social issues of

employment mainly related to lay off employees.

Articles is just in concluding that mining closure is not just about planting trees , it is about

creating a sustainable ecosystem in which community affected by mining can live a healthy life

after the closure of mines. For this to happen the closure plan has to be prepared in consultation

of the community. The land which is given back to the government after mining is finished

One of the biggest drawbacks of

closure legislation in India is that we

have not learnt from international

experiences


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instead should be given to the commons, so that it can be used to create lively hood. A mine

inflicts a double whammy on the fabric of the community once while it begins and second time

when it exits.

Employment and mining

Notwithstanding the claims of higher

employment with increase in mining, the

figures on employment tell an entirely

different story. Although the production of

minerals is increasing at a compounded

annual growth rate of 10.7 %, the total

employment has been reduced by 30 %.About 75 % of the employment in mining

sector comes from coal. The major reason of

this decline is the mechanization of the

mining industry. This trend has resulted in

loss of jobs of local people which again

indicates that mining is not for the local

people. Increase in mining does not result in increase in employment. The infrastructural

bottlenecks are responsible for coal deficit in India. It is going to be a challenge to meet the

mineral demands in coming future because of increasing population and its needs.

REHABILITATION: THE REGULATORY ROADBLOCKS

It can be said as the fortune of India and misfortune of tribal people that almost all of the mineral

reserves in our country are on forests and hills inhabited by tribal and backward class people.

In India state believes that since the minerals are within its territorial jurisdiction, it has the right

to explore and extract them at will- and that whoever lives on lands where minerals are located

can be evicted to aid the purposes of exploration and extraction.

Figure 5:mining and employment


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This thought has been nurtured since colonial times by the draconian Land Acquisition Law

1894 it gives the state power to grab land, and also does not put any obligation on it for

resettling or rehabilitating those whom it displaces.

This has resulted in lakhs of people being displaced in the name of development and mining as apart of it. Most of Indias mining areas are located in remote and least developed regions,

inhabited largely by scheduled tribes and other economically weak and disadvantaged sections of

society. And in most case people who are displaced doesnt get any compensation or alternate

livelihood just because they do not hold any legally enforceable claims to their land.

The two attitudes seen in Indian laws are one, that state has the right to sell minerals to the

highest bidder and two, that whoever lives on lands where minerals are located has few or no

rights to restrict exploration and extraction.

The government gives mining rights to companies who fulfills the criteria and during this

process the local community members no consultation is required. During the mine lease phase,

the Land Acquisition Act (LAA) is invoked to acquire land. The owners of land have no right to

deny the acquisition while the lease holder can use as much area for mining (upper limit set by

the government). This is the approach in which interests of one group are nurtured while those of

the other group are completely ignored.

Displaced communities have asked can the traditional axiom of sacrifice for the good of the

country truly be interpreted to mean unlimited sacrifice? Is it ethical to shoulder the ills of

development while the benefit goes to others? environmental degradation and displacement

caused by mining exacerbate poverty. Resource curse is now a well-established phenomenon not

only in India but in other countries also. Mineral rich states like Jharkhand, Chhattisgarh and

Orissa, in spite of their mineral wealth re struggling with poverty, illiteracy, and low growth

rates.

Why mining is creating poverty instead of prosperity has much to do with the governance

systems in place. Indian legislation doesnt view resettlement as important as it considers the

power to forcibly usurpation of land by the state.


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Laws related to mining

Coal Bearing Areas (Acquisition and development) Act, 1957 allows states to acquire land in

coal-rich land and land is automatically leased out to Coal India Ltd.

The Atomic Energy Act, 1962 gives government huge and almost autocratic powers over landcontaining atomic minerals. But the most powerful piece of legislation that government has is

The Land Acquisition Act, 1894 because of sheer power it provides for mass acquisition.

Often when land is acquired there is some sort of resistance from the local communities as in all

cases their consent is not required, in some instances these struggles turned violent one such case

is of Kalingnagar, Orissa. This is considered as one of the most violent land acquisition in recent

times on January 6, 2006, 12 tribals protesting land acquisition were gunned down by battalions

of Orissa police. Land for steel plant was acquired here by government many years ago, and was

finally given to the Tatas in 2005. People who were protesting they were not against land

acquisition but what triggered their anger was that government was selling the land to Tatas at 10

times that it had paid to the tribals. In another case at Nandigram On march 14, 2006, 3000

police personnel forced their way into West Bengals Nandigram block, officially 14 people died

and many more injured but villagers say over 100 people were killed and several hundred

injured, they were protesting against acquisition of land for SEZs. Following the incident

government was forced to cancel the acquisition.

Given the cases it is evident that government uses the

LAA to acquire the land and sells this land to companies

usually at higher rates than what is paid to acquire the

land.

Seeing all these lacunas in LAA many changes have

been proposed by National Advisory council (NAC) in

its Draft National Development, Displacement and

Rehabilitation Policy some are

The Land Acquisition act, 1894 is

the most powerful piece of

legislation available to the

government which allows it to

displace anybody from land in the

name for development project

without any legally enforceable

liability of resettlement.


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LAA should have a legally enforceable rehabilitating Clause within it. Compensation should be provided not just for loss of land but also for loss of livelihood,

habitat, cultural resources and loss of access to natural resources.

The government has to define the public purpose to be served by project. Informationon the social, environmental and economic costs should be made readily available and

should be transparently discussed.

Project affected people (PAPs) should have the legal right to challenge the publicpurpose.

Public purpose should be replaced with public good including the good of those to bedisplaced.

NAC has also detailed out the nature of rehabilitation package and the institutional changes

required ensuring implementation and accountability. However the main emphasis is on either

revoking the LAA or radically amending it, has been to challenge the eminent domain of the

state, and to redefine public purpose.

Legalizing the encroachers

In 2006 the government passed the Schedule Tribes and Other Traditional Dwellers (Recognition

of Forest Rights) Act. This tribal bill was meant to address both forest rights and occupancy

rights of people who had been using forest lands for generations, without any formal recognition.

But eventually the bill has been shrouded and tribal rights group feels that there has been

significant dilution from the original version. The bill has defined forest dwellers as those who

primarily reside in the forest but most of the forest dwellers do not strictly dwell inside the

forests, but are heavily dependent on the forest for livelihood, some estimates that 90 % of forest

dwellers are likely to be kept from availing the benefits of the bill.

In 2003 National Policy on Rehabilitation & resettlement (NPRR) was prepared to safeguard the

displaced peoples right to be rehabilitated. It is a guideline applicable only to projects that

displace 500 families or more en masse in plain areas and 250 families en masse in hilly areas.

But there are some drawbacks also in NPRR which excludes many from the rehabilitation


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process; one of the clauses that excludes them is that, only those losing 100 % of their lands will

be eligible for compensation, another clause that excludes that only if 500 families in plain

villages or 250 families in hilly or scheduled areas are affected en masse by the project area will

be declared an affected zone. The predominant method of compensation advocated by the policy

is cash, not rehabilitation or livelihood. But cash compensation is hardly ever adequate in making

up for displacement losses.

The question of compensation

Market-driven monetary compensation has a flip side

Land acquisition goes hand in hand with compensation. But how is adequate compensation

defined? As per prevailing practice compensation is considered as monetary compensation at

market rates. There are a few exceptions though; those displaced by the sardar sarovar project,

are entitled to land-for-land.

Fair Market?

While many groups have recommended that losses of other kinds- livelihoods, cultural resources,

habitats and access to natural resources also be compensated, the notion that market is fair

arbitrator of compensation has also raised many questions. Firstly, it is well known that land

prices increase exponentially when an industry or a major infrastructure project is set up. The

original landowner is compensated at current rates, preventing the displaced from benefiting

from the boom in market prices.

A second and related point is that market prices are heavily distorted, as the market is not

sufficiently developed. Agricultural land is typically not tradable for non-agriculture use. As

such, the market price takes into account the restrictions in use. Land prices do not include the

probability of industrial or non-agricultural use at much higher prices. In land acquisition,

therefore the true prices would have been substantially higher had land been a tradable

commodity.


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STAKE HOLDER ANALYSIS

The analysis evaluates the stakeholders in the mining sector of the country on the basis f their

interests in the sector and the influence that they veil to enforce their interests. Among the

identified stakeholders, all seem to have a high interest in the sector but not all have the influence

to realize their interests.

STAKEHOLDERS INTERESTS INFLUENCE

Tribal People High interest in the

ownership of the land.

Forests, wildlife and water

systems help in creating

livelihoods and provide a

home to tribals

Low influence. Victims of

lopsided policies and

ignorance. Industrial

exploitation and

displacement due to mining.

Government High interests in the mining

sector. Taxes and royalty

form a large part of

revenue. Breeding ground

for corruption.

High influence as most of

the mines are state

controlled and the mining

policy dictates the terms of

the government to the

industry

Industry High interests in owning and

operating the mines.

Integrated industrial setup

with mineral based

industries owning mines.

High influence in influencing

the government to mold

favorable policies. Huge

turnover after paying taxes

and royalty.

Civil Society High interests in ensuring

rights to the people on their

land and livelihoods and

preservation of

environment.

Low influence.

Scientists and Academicians High interests in researching

on issues related to mining

and innovation of

sustainable models for

mining industry.

High influence with the civil

society but low influence

with government and

industry.


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STAKE HOLDERS POINT: MR SIDDHARTH MAHESHWARI6, GM

MARKETING, JSW STEEL.

JSW Group is one of the fastest growing business conglomerates with a strong presence in the

core economic sector. This Sajjan Jindal led enterprise has grown from a steel rolling mill in

1982 to a multi business conglomerate worth US $10 billion within a short span of time.

As part of the US $ 16.5 billion O. P. Jindal Group, JSW Group has diversified interests in Steel,

Energy, Minerals and Mining, Aluminum, Infrastructure and Logistics, Cement and Information

Technology.

In Orrisa:

A 12.5 million ton integrated steel plant and 2600 MW captive power plant in phases, with a

total investment of US $ 8.00 billion (Rs. 40,000 crore). Jindal Steel & Power has been allotted

the Ramchandi Promotional Coal Block in Orissa for the proposed Coal to Liquid (CTL) project

by the Union Coal Ministry, Government of India. The project cost estimated to be around US $

8.4 billion (Rs. 42,000 crore) includes CTL plant, coal mining and power plant. The project to be

located in Tehsil Kishore Nagar, Dist. Angul, Orissa will produce 80,000 barrels per day (4.0

MMTPA) crude using environment friendly Indirect Coal Liquefaction Technology developed

by M/S Lurgi of Germany for the first time in India.

Mr Siddharth Maheshwari:

A metallurgy engineer by profession and an MBA from MDI Gurgaon, Mr Siddharth has an 4

years of experience in the coal and mining sector . He is also running a campaign for political

awareness named HELLO MANTRI JI (http://hellomantriji.com/), which makes him a best

choice for his critical comments on the issue of mining.

Views on : Mining and its effect on environment:

Maheshwari says that no doubt if the norms are not taken care of the environment is at stake,government has floated norms which are to be followed while mining in an area and we as a

responsible company have tried our level best that we dont tamper with natural environment.

We try to create a win- win situation for every stake holder . But there is a perception in general

6https://www.facebook.com/siddharth.mah
http://hellomantriji.com/http://hellomantriji.com/http://hellomantriji.com/http://hellomantriji.com/


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that mining companies are causing harm to, no doubt the situation harm has been caused by

irresponsible behavior of some companies and by and large by the illegal mining. Todays world

is flat, information flows with speed of light, if you are an irresponsible organization and there is

a bad word around for you then you are no more a preferred employer. It is now essential for all

the organizations in and around mining sector to be responsible.

When questioned on what have been the reasons that in mining sector private players have a

major role to play rather than government he replied that if we analyze the timeline of mining

sector then we will find that government had a major stake in the pre LPG era, after

independence when British left there were not enough competent people to handle mines, so

government had to play a major role over there. But the efficiency of the government and the

way they work was a cause of worry, Nehrus modern Indias temple initially worked good but

gradually they were not able to justify the competency and the production levels required. SAIL

own 10 times more land when compared to JSW and POSCO, but there efficiency of production

is nowhere around us. Do you think is it justified that our resource which can push countrys

productivity to new heights should be in hand of inefficient organizations? There was no

alternative way than to open mining sector for private players.

The displacement of the people and the stress caused due to this is a cause of worry but the

regulations which are in place compel every company to provide a new accommodation to the

people, provide them with a job (every household should get one job) etc , we as a company have

gone beyond it , we have gone to extent of provide four jobs per household. We recruit people

from the local state and that is not something which is because of regulation but for every

rational businessman recruit local manpower is the best option. We have started schools,

educated children and people in local area. We have tried to create a win- win situation for every

stake holder. But if people say a community should be prevented from development just for the

sake of preventing displacement I disagree. There are success stories around dont just look at

the controversies. The sort of compensation we are required to pay , the bank guarantees and

cash we are required to deposit is not at all comparable to the compensation in government

projects of highways and dams. I dont disagree to the compensation concept but the extent to

which compensation is being asked for is inducing arent seeking mindset.


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I would say that it is governments policy and policy implementation failure is responsible for

the state in which we are today, government has not been able to create a win-win situation for

every stakeholder, rather than it is involved in the blame game.

SYSTEM INTERRELATION

Figure 6:system interelation

Mining

Livelihood

IllegalLegal

Employment

Consumption

Ecology

HumanEnvironmental

cost

Loss of

indigenous skill

Rehabilitation/comp

ensation/jobs


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THE ISSUE OF COALGATE

Figure 7: the burning issue of coalgate

The Comptroller and Auditor General of India have estimated the loss of allocation of coal mines

to the companies in 2004 at rupees 1.86 lakh crores. But this value is calculated at todays price

of coal. The coal price has increased by 43.32 % during the year 2004-20117.

Hence according to the prices of 2004, the loss would have been (1.86/1.4332)= 1.298 lakh

crore.

Following are the values of amount of loss incurred at different average inflation rates from

2004 to 2011:-

7http://164.100.47.132/LssNew/psearch/QResult15.aspx?qref=113923, Lok Sabha question
http://164.100.47.132/LssNew/psearch/QResult15.aspx?qref=113923http://164.100.47.132/LssNew/psearch/QResult15.aspx?qref=113923http://164.100.47.132/LssNew/psearch/QResult15.aspx?qref=113923http://164.100.47.132/LssNew/psearch/QResult15.aspx?qref=113923


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Average rate of

inflation

Losses in 2011-

12

8% 2.242 Lakh crore

6% 1.951 lakh crore

5% 1.826 lakh crore

4% 1.707 lakh crore

The following formula was used to calculate the value of losses:-

Value of loss in 2011-12 = Amount of loss in 2004-05 (1.298 lakh crore)*(1+inflation rate)^7

Till 1991, we were considered to be deprived of the gains from mining of minerals. We were told

that we were not able to leverage our complete potential of mining. After 1991, we started

privatizing this sector in expectation of better technology and better productivity. But this is what

we have got. Instead of providing a shot in the arm of economy through mining boom, we have

just handed lakhs of crores of rupees in the hands of our ministers. We are again back to ground

zero or even below it. It is of utmost importance that auctioning of mines take place from now on

instead of allocation of it so that there is enough money available in government chauffeurs to

put into development of the nation.

EXCERPTS FROM: REPORT OF THE CHIEF MINISTERS COMMITTEE FOR

DEVELOPMENT OF JHARKHAND: TRANSFORMING JHARKHAND, THE

AGENDA FOR ACTION

Section 8.4: Increasing the Efficiency of InputsMines

Known barriers(1) delays in obtaining mining approvals and clearances; (2)

Infrastructural limitations (power, transport); (3) barriers to private sector entry

(such as in coal); and (4) input limitations (power, coking coal). The World Banks


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a fore-mentioned report on Jharkhand also mentions these in a slightly different

language.

Successful mining laws need to be designed to: (i) minimize corruption and rent-seeking, as

well as the duration of the permit process, by eliminating discretion in the implementation of the

law; (ii) reduce speculation and encourage active exploration, by the use of properly structured

license fees, which also serve to finance an independent and efficient mining cadastre; and (iii)

provide environmental and social safeguards and rehabilitation.

Challenges:

Contained and mitigated damage to the environment, especially the critical ecosystems of local

areas and being more acceptable to society, including development of the people directly

affected

The new Mining Bill, currently tabled in Parliament, seeks to transfer this power to the states.

Environmental requirements have now become stringent, with certain areas

The Centre divides protected areas into go and no go areas, with mandatory Environmental

Impact Assessment (EIA) studies.

Jharkhand government should immediately map mineral bearing areas and then map go and

no go areas on top of these. However, environmental and forest clearances can also take time

and contribute to uncertainty for the private sector.

Under Section 5 of the Bill, State governments are required to get the forest clearance procedure

approved before the invitation of bids. Although there is a lack of clarity in the proposed Bill

about whether the obtained clearance will be the first stage of in-principle clearance, or the later

stage of full and final clearance, Jharkhand needs to ensure that it is not the former, but the latter.

Why the Governments fail to compensate the post mining conditions:

There are four components around which policies on rehabilitation and reconstruction of

livelihoods are formed. These are:

(1) Cash Compensation; (2) Alternative Land; (3) Employment; and (4) Self

Employment.


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In the case of Jharkhand, the displaced persons are mostly tribal, for whom displacement is not

just about losing their traditional source of habitats and livelihoods. Therefore, rehabilitation is

seldom sufficient to enable them cope with the changes brought to their traditional ways of

living, lifestyle and livelihood. Both social and economic impoverishment has naturally

followed. Cash compensations have been insufficient, flawed, poorly implemented (plagued by

delays and corruption) and thus have failed to re-erect dismantled production systems and

replace/reconstruct traditional employment avenues. With lack of financial inclusion for the poor

in India, this might not be the preferred option. On the other hand, providing alternative land has

remained more on paper, due to the scarcity in the availability of non-wastelands. Alternative

employment re-establishes the livelihood and income streams but, since the displaced people

have been tribal and therefore largely unskilled, employment opportunities have been few and

private sector employers have been more reluctant to guarantee them. Self-employment on the

other hand, is entrepreneur-centered small business, supported by micro credit and elements from

the rehabilitation packages. These in most cases have failed to generate guaranteed returns equal

to a job.

Regulatory flaws:

One of the reasons why these mines are not monitored or regulated and cause significant damage

to the environment is that mines that have a lease area of less than 5 hectares (making them small

mines) do not need Environmental Impact Assessments(EIA) to be done.

Corruption:

The policy should be strict with illegal mines, as well as under-reporting practices of the

value of the mineral. For example, under-reporting of the content enables the iron ore mines to

escape with a lower royalty payment. More mines or bringing more mines under regulatory and

accounting ambits would naturally increase revenue generation.

Mismanagement:

Dead rent and cess are not major contributors to the State exchequer. Dead rent is paid to the

State as a charge by the lessee for the area included in the mining lease but from where minerals

are not extracted. The charge also depends upon the value of the mineral. The said objective is to


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create a disincentive for the lessee from keeping the mine idle. Dead rent should be linked to the

realization from royalty income, which can enhance the revenue to the exchequer.

CONCLUSION

It is a well-known fact that our country had huge reserves of mineral resources which have been

exploited for various uses. Even British were extracting minerals for their uses, in 1894 they

came up with Land Acquisition Act which gave immense power to government stating that

government is the sole owner of all the mineral reserves within its territorial jurisdiction and also

it can evict anybody living on that area without any obligation of rehabilitation or resettlement.

Then with time came other acts that add to this autocratic power of displacing people

unjustifiably. Coal Bearing Areas (Acquisition and development) Act, 1957 & The Atomic

Energy Act, 1962 are other acts that allows government to displace people living on lands

having coal or atomic minerals.

With the passage of time government has realized the importance of taking up responsibility to

help people rehabilitate who were displaced in the name of public purpose. NAC has drafted

National Policy on Rehabilitation & Resettlement which includes many provisions to help people

displaced due to mining projects, besides displacing people mining project it also poses threat to

the environment. There are many examples of clashes between people and government where

loss of life has happened which could have been prevented if stronger legislations were there

supporting mining and also safeguarding people interests.

The question of sustainability cannot be addressed without the involvement of all the

stakeholders in policy making and its implementation. Hitherto, the government and the industry

have been the major decision makers as far as the policy on mining ecosystem is concerned but

the continuation of their dominance will definitely produce irreversible negative consequences

for all the stakeholders. It is necessary that the involvement of people in the mining areas is

secured so that they can use their skills and knowledge to create systems which provide

alternative to the destruction caused by the mining activities. It is also important to remove the

cynicism related to the interests of different stakeholders perceived by each one of them. The

channels of dialogue have to be opened so that an atmosphere that can support the emergence of


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collective intellectual capital can be created. The government and the industry need to

understand the fact that the development that has been envisaged by them for the poor people is

not the development that the people want for themselves. The macro economics of development

has to match its micro economics if we desire for sustainability in exploitation of natural

resources through mining.

REFERENCES

1. Excerpts from Rich Lands, Poor People: Is sustainable mining possible? Center forScience and Environment, 2006, Chandra Bhushan and Monali Zeya Hazra

2. Post-Independence Development In Mining Industry, Dr. H.S.M Prakash,www.easternpanoram.in

3. http://www.minesandcommunities.org/article.php?a=4024. Displacement due to mining in Jharkhand, Economic and Political Weekly, Vol. 31, No.

24 (Jun. 15, 1996), Mathew Areeparampil

5. Report of the chief ministers committee for development of Jharkhand; transformingJharkhand; the agenda for action.

6. Excerpts from the interview with Mr. Siddharth Maheshwari, General manager,marketing, JSW steel ltd.

7. The Economic Times

TABLE OF FIGURESFigure 1: The mineral ecosystem .................................................................................................................. 5

Figure 2:Mining contribution to GDP ............................................................................................................ 9

Figure 3:Production , demand , imports and closing stocks ....................................................................... 10

Figure 4:value of imports ............................................................................................................................ 10

Figure 5:mining and employment ............................................................................................................... 22

Figure 6:system interelation ....................................................................................................................... 30Figure 7: the burning issue of coalgate ....................................................................................................... 31
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