Planned large-scale mechanised mining of minerals contributes substantially to the state and national exchequers. This is well-evident in the case of Orissa. In recent years, excepting a brief period during the 2008-09 economic downturn, mining revenue has made substantial contribution to the economic development of Orissa, helping the state metamorphose from a revenue-deficit province to a revenue-surplus one.
In 2009-10, the state achieved a revenue surplus of Rs 1,073 crores compared to Rs 3,034 crores in 2008-09. This is against revenue deficit projection of Rs 2,369 crores in the state budget for 2009-10.
The state had achieved revenue surplus of Rs 481 crores for the first time in 2005-06 after a gap of 22 years.
In 2008-09 and 2009-10, Orissa got Rs 1,100 crores and Rs 1,900 crores, respectively, as royalty from different mineral resources. This was primarily on the back of royalty from mining activities being undertaken by various companies including the Central public sector unit National Aluminium Corporation (Nalco) Vedanta Aluminium Limited and Tata Steel.
Riding on the boom in the international metal industry sector in the last few years, Orissa — with its rich iron ore, bauxite and coal reserves — has successfully attracted Rs 5 lakh crores investments, both from domestic and foreign players, in steel, aluminium and power sectors. The huge investments are expected to bring in additional 2.2 to 2.5 per cent share of the country’s gross domestic product (GDP) and 10-11 per cent industrial GDP.
“This means once the state’s varied and rich mineral ore wealth is exploited properly and optimally, it can generate much more additional revenue for the states exchequer,” says Shantanu Mohapatra, former director of mining and geology department, government of Orissa.
Mr Mohapatra, who is also regarded as the father of bauxite exploration in Orissa, maintains that the mining industry as a whole helps the society in two ways. Firstly, the revenue generated from mining and all allied activities is utilised in various developmental projects of the state. Secondly, it accelerates the process of all-round socio-economic development in the larger peripheral region surrounding the mining as well as the mineral-based industrial projects.
India accounts for 6.7 per cent of the world’s 65 billion tonnes of bauxite reserves. And Orissa’s bauxite wealth constitutes 55 per cent of India (over 2,000 million tonnes, barring some unexplored deposits). Besides, India has non-coking coal reserves to the tune of 60 billion tonnes. Despite many such leads, bauxite exploitation in the state is yet to make a mark.
Major players, like Aditya Aluminium, Utkal Alumina, Hindalco and Vedanta, are still waiting to take off. Many thermal power projects are yet to function. Once known as a power-rich state, Orissa has now become a power-deficit state, laments Mr Mohapatra.
“India has an extremely poor track record when it comes to sensible management of its natural resources. Probably this has provided a window to the Maoists who have capitalised on the Orissa’s indifference and lackadaisical approach to the problem. States like Andhra Pradesh, Bihar, Jharkhand and Chhatishgarh and West Bengal also belong to this category,” observes Mr Mohapatra.
Mr Mohapatra also recalls the recent Maoist attack on Central Navratna public sector unit National Aluminium Company’s (Nalco) large mining project on the Panchpatmali plateau in Koraput district (which was his own team’s discovery in the early sixties) simply for looting large quantities of explosives stored on the hilltops there.
“This proves that the strategy of Maoists can outwit even giants like Nalco. This also can act as a signal of caution for other bauxite-alumina companies because bauxite always occurs on high plateaus located at least 300-350 metres above mean sea level (MSL),” he adds.
While Naxalism’s roots are allegedly based on government negligence of backward regions, giving rise to feudalism which blatantly exploited the landless labour class, today, the situation is not the same with government intervention (though delayed).
Life of the local tribals in Damanjodi and Lanjigarh towns and Kalinga Nagar, where corporate giants like Nalco, Vedanta and Tata Steel are operating, has substantially changed, through capacity building and economic interventions.
In Vedanta Alumina’s case, the company’s wait is yet to be over to see that the Supreme Court order that came sometime back is implemented, enabling it to exploit bauxite from near its plant at Lanjigarh in Kalahandi district.
The recent arrest and subsequent interrogation of some Maoists in the mineral rich Keonjhar district on the border of Jharkhand revealed that a section of people, who claimed themselves to be Maoists, were actually mining mafia. They were found operating in Orissa and Jharkhand.
The Maoists, as the arrested accused confessed, indirectly get involved illegal mining. They protect illegal mining by mafia and charge more than 25 per cent of the revenues from them.
Most such illegal mining activities take place particularly after the sunset in the regions that are inaccessible to the police and the general public.
Thereafter, the minerals/ores are transported to their desired destinations by a set of dishonest transporters by road, now known as Maoist corridors.