Minister finds faults with OMC-Vedanta MoU

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Raising questions on the Memorandum of Understanding (MoU) between the Odisha Mining Corporation (OMC) and the Vedanta Aluminum limited (VAl) for undertaking bauxite mining atop the Niyamgiri Hills, Union Tribal Affairs Minister Kishore Chandra Deo has written a letter to Governor SC Jamir urging him to "to do the needful so that Constitutional provisions are adhered to both in letter and spirit."

Deo has argued that the MoU is against the spirit of the Constitution and its provisions. "I think having an MoU with Vedanta itself was wrong because it goes against the letter and spirit of both Article 244(1) and provisions of Schedule V (of the Constitution)," he told reporters in New Delhi.

The OMC-Vedanta MoU was signed in 2003 for mining in the Niyamgiri forest areas in Kalahandi district.

Deo has questioned the very basis of formation of the State-owned mining corporations as quite often the States sell their shares in these companies with the partner firms, mostly belonging to the private sector, benefitting as a result of their association with such State-owned undertakings.

"This is against the provisions of the Constitution," Deo said, adding that disinvesting shares of such a company to a firm not owned by tribals, generally results in surreptitiously subverting and undermining the sanctity of the Constitution and safeguards guaranteed by it. The Minister claimed that mining does not improve financial or living conditions of the people in these areas as development here has never been inclusive.

"Development doesn't mean mining ore and exporting it to China. Making a few people or a few companies affluent at the expense of the marginalised people is not development," he said, adding that people are the owners of natural wealth while the States and the Centre are only its custodians.

"It's not for one Government to plunder natural wealth. State owning doesn't mean that the State is empowered to do whatever it wants to do. In any case, they can't flagrantly and blatantly violate the norms and go ahead with the MoUs," Deo said.

Daily Pioneer
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