By IANS,
Bhubaneswar : Union Minister of State for Chemicals and Fertilizers Srikant Jena has asked the Orissa government to take control of the state’s mineral-rich mines instead of leasing them out to few corporates at “throwaway prices”.
In a letter to Chief Minister Naveen Patnaik, Jena said he favours development through industrialization but the incentives needed by the industry should be given in the form of direct subsidies or similar benefits, not in the form of giving mine leases at low rates compared to market prices.
“In my opinion, the mineral wealth of Sukinda Valley (in Jajpur district) itself can change the fate of Orissa and can change its economic scenario, provided the government takes over chromite mines under its control,” he said in the letter, a copy of which is in possession of IANS.
Orissa accounts for about 98 percent of the total country’s chromite (chromium ore) reserves, of which about 97 percent is found in Sukinda Valley, over an area of approximately 200 sq km.
“Similarly, if Barbil and Joda area iron ore mines (one of India’s biggest iron ore reserve areas) are also developed by the state instead of by corporate houses the state would earn additional revenue of more than Rs.10,000 crore per annum, which can be utilized for the benefit of the local people,” he said.
“However, on the contrary, we find today that most of the mines are leased to few corporate houses at throwaway prices, which are being exploited regularly by them on captive basis and highly priced natural resources are being capitalized by them for their own gains,” said the letter which was sent Thursday.
Citing the status of bauxite mines in the state, he wrote: “The allocation of bauxite mines in Orissa, including the area of Niyamgiri hills, which has the best bauxite deposits in the country, is a live case of benefiting few private enterprises at the cost of local people.”
“I am firmly of the view that the state government needs to take effective steps immediately to take charge of key mining rights under its control and save the state from drain of the precious natural resources to a few corporate houses,” he wrote.