Won’t get a say in allocation of mining leases
The Steel Ministry’s quest for exercising central authority for iron ore, manganese ore and chrome ore is likely to remain a dream as Cabinet Secretary KM Chandrasekhar has ruled out any re-allocation of subjects as sought by the ministry to have a say in the process of allocation of mining leases.
Steel Secretary Atul Chaturvedi had on December 30 written to Chandrasekhar seeking an amendment to the Government of India (Allocation of Business) Rules 1961 citing that the Mines Ministry currently exercises the work of legislation as well as regulation of minerals in the country, while his ministry “has been excluded on mining leases and matters related there to,” Chaturvedi said.
In the Inter Ministerial Group meetings, the issue of non-allotment of mines of iron ore and other minerals used by the steel industry has been raised from time to time. However, as the Steel Ministry has not been assigned any role in the process of allocation of concessions of any mineral including iron ore, manganese ore and chrome ore used primarily by the steel industry, this ministry is unable to address the concerns raised by the ministry,” he had argued.
Unimpressed by the contention, Chandrasekhar in his communiqué to the Steel Ministry made it clear that “after examination of the matter, it is considered that no amendments to the Government of India (Allocation of Business) Rules 1961 are considered necessary and that higher investment in the steel sector could be facilitated through more effective coordination between the concerned ministries of the central government and the concerned state governments. It is considered that the IMG could play a vital role in the process.”
He asked both the steel and mines ministries to discuss the matter and that he be apprised of their talks.
On December 29, 2009, Steel Minister Virbhadra Singh triggered the debate by saying, “Ideally, the steel and mines ministries should be merged. This is my personal view. If not merged, at least the power to grant mining leases for iron ore and other minerals used by the steel industry should be transferred to the steel ministry.” Since iron ore, manganese and chrome are used largely as inputs for the steel industry, Singh suggested that the power to grant leases must vest with his ministry.
Steel Secretary Atul Chaturvedi took up the issue with Chandrasekhar the following day on December 30, 2009.
The Cabinet Secretary forwarded the letter to the Mines Ministry for comments on January 5.
Mines Secretary Santha Sheela Nair said there was no case for a re-allocation of subjects. Echoing Nair’s sentiments, Mines Minister BK Handique compared Singh’s wishes to a bid to “encroach” upon another’s territory, which almost sounded like “illegal mining”.
Nair took the war to the Steel Ministry’s doorstep by demanding that resource PSUs such as National Mineral Development Corporation, Manganese Ore India Ltd and Kudremukh Iron Ore Company Ltd be brought under the purview of her ministry as “the Steel Ministry does not have requisite expertise in exploration and exploitation of minerals,” according to her reply to Chandrasekhar on January 7.
The Steel Ministry’s quest for exercising central authority for iron ore, manganese ore and chrome ore is likely to remain a dream as Cabinet Secretary KM Chandrasekhar has ruled out any re-allocation of subjects as sought by the ministry to have a say in the process of allocation of mining leases.
Steel Secretary Atul Chaturvedi had on December 30 written to Chandrasekhar seeking an amendment to the Government of India (Allocation of Business) Rules 1961 citing that the Mines Ministry currently exercises the work of legislation as well as regulation of minerals in the country, while his ministry “has been excluded on mining leases and matters related there to,” Chaturvedi said.
In the Inter Ministerial Group meetings, the issue of non-allotment of mines of iron ore and other minerals used by the steel industry has been raised from time to time. However, as the Steel Ministry has not been assigned any role in the process of allocation of concessions of any mineral including iron ore, manganese ore and chrome ore used primarily by the steel industry, this ministry is unable to address the concerns raised by the ministry,” he had argued.
Unimpressed by the contention, Chandrasekhar in his communiqué to the Steel Ministry made it clear that “after examination of the matter, it is considered that no amendments to the Government of India (Allocation of Business) Rules 1961 are considered necessary and that higher investment in the steel sector could be facilitated through more effective coordination between the concerned ministries of the central government and the concerned state governments. It is considered that the IMG could play a vital role in the process.”
He asked both the steel and mines ministries to discuss the matter and that he be apprised of their talks.
On December 29, 2009, Steel Minister Virbhadra Singh triggered the debate by saying, “Ideally, the steel and mines ministries should be merged. This is my personal view. If not merged, at least the power to grant mining leases for iron ore and other minerals used by the steel industry should be transferred to the steel ministry.” Since iron ore, manganese and chrome are used largely as inputs for the steel industry, Singh suggested that the power to grant leases must vest with his ministry.
Steel Secretary Atul Chaturvedi took up the issue with Chandrasekhar the following day on December 30, 2009.
The Cabinet Secretary forwarded the letter to the Mines Ministry for comments on January 5.
Mines Secretary Santha Sheela Nair said there was no case for a re-allocation of subjects. Echoing Nair’s sentiments, Mines Minister BK Handique compared Singh’s wishes to a bid to “encroach” upon another’s territory, which almost sounded like “illegal mining”.
Nair took the war to the Steel Ministry’s doorstep by demanding that resource PSUs such as National Mineral Development Corporation, Manganese Ore India Ltd and Kudremukh Iron Ore Company Ltd be brought under the purview of her ministry as “the Steel Ministry does not have requisite expertise in exploration and exploitation of minerals,” according to her reply to Chandrasekhar on January 7.
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