The revenue source and other economic opportunities out of available minor minerals in Odisha have not been fully explored yet by the State Government though there is a lot of scope of improvement with increase in the number of minor mineral items under the State list. The list of minor minerals has increased to 54 with inclusion of 31 items to the earlier declared list of 24. It has been done by the Government of India in February 2015 under the provision of MMDR Act.
This has created greater possibility for the State Government in matter of lease and royalty collection from available minor minerals as many of the major minerals are now converted to minor minerals.
A careful management of these resources can improve the sources of revenue of the State while maximizing the best use of these natural resources. The Ministry of Mines annual report shows that the value of production of minor minerals in the country was estimated at Rs 52,810 crore in 2016-17 and the share of States such as AP was highest 19 per cent followed by Rajasthan, Telangana, Gujarat and UP, while the share of Odisha was less than 5 per cent.
The most visible challenge to maximise the revenue is to restrict the theft of minor minerals and to stop the increasing illegal mining works. In recent years, the demand for minor minerals has increased due to growth in housing, infrastructure, construction projects and industrial use of it in many ways.
The huge demand has encouraged illegal mining in the absence of strict monitoring and supervision mechanism by the authority in change of enforcement of laws.
The illegal mining operations are not just a cause of loss of revenue but also making damage to the local environment and people.
Leave apart revenue, a careful utilization of minor mineral potentials in the State can also very well generate local employment and become a prospective source of income for the locals. Illegal mining is very much linked to the mineral governance system and decision making process which needs to be decentralized.
The National Mineral Policy and mineral policies in many States have reflected concern over minor minerals. But the State of Odisha has no minor mineral policy like other mineral bearing States such as AP, Chhattisgarh, Karnataka, Kerala, MP and Rajasthan having own specific policies.
The Mines and Minerals Development and Regulation Act, 1957, which administers the mineral sector of the country has made provision for the State Governments to make rules for regulating the grant of quarry lease, mining lease or other mineral concession in respect of minor minerals.
The Government of Odisha has made Minor Mineral Concession Rules 2016. In its Schedule-1 and II, 44 minor minerals are listed which include clay, sand, brick earth, moorum, sand stone, marble chips, road metals, decorative rocks, lime kankar and chalcedony shingles, dolomite, pyrophyllite, mica, fire clay, agate, ball clay etc.
The three departments, Forest, Mines and Revenue, are involved in the minor mineral lease depending on the areas such as forest land, and mines area and revenue land respectively. But these departments lack coordination.
The State Government got Rs 202.65 crore as royalty from minor minerals in 2009-2010 which has been marginally increasing during last few years. The Government has to revise the rate of revenue within three years of interval and the revenue includes royalty, dead rent, surface rent and fees for compensatory afforestation and amount to the District Mineral Foundation (DMF) specified in Schedule-I and II of the rule. There has been no proper regular review, revision of rate of royalty, and rents based on demands in the market which caused huge loss of revenue from the minor minerals sector.
The illegal minor mineral quarries in most of the areas of our State are creating environmental problem for the local habitations by affecting their local eco system, forest, land and surface water. But the fact is a nexus between local ruling party leaders and enforcement authorities has been obstructing the enforcement of law.
There are many illegal quarries which lie abandoned as artificial ponds after extraction of minor minerals. No environmental procedure is followed in refilling the mines which cause problem for the grazing animals and general public. In many places, both the mining operation and transportation cause inconvenience to the local public to access the public places such as burial ground, village forest, temple land.
Places of archeological importance also are occupied. The minor mineral processing units such as stone crushers operating in public road side which caused huge dust and sound pollution in the area remain unaddressed in spite of complains and protest.
The loss of trees due to minor mineral mines is not being compensated with afforestation in the locality as well as the revenue collected from minor mineral is not being spent for local area development.
The leaseholder of mining has to submit a mining plan for the development of the mineral deposits of the area. The mining plan should include the nature and extent of mineral body and spot of mining operation with details of the mineral reserve and extent of manual mining and use of machinery. It should clearly specify the impact of mining on water, forest and land in the vicinity and a detail scheme of restoration of the area by afforestation, land reclamation and pollution control measures with a mining closer plan within five years.
The lease clearance has to get the environment clearance as per the provisions of Union Forest and Environment Department. The State level impact assessment authority has to give the clearance.
There shall be no mining activities in a distance of 50 meters from water bodies, public road, temple, reservoir, dams, burial ground, railway track, and public building and the mining activities should not cause any damage to private or public properties.
The case of river bed sand mining and environmental regulations has been mentioned separately. The rules have made provision of Environment Management Fund (EMF) at State level out of 5 per cent of the royalty for reclamation and rehabilitation of mined out area. The fund will be utilised for provisions of common facilities for the benefit of community in and around the mining area. Along with DMF, the State has set up Environment Management Fund Trust for the purpose.
The current scenario of the State shows that the lease holders are mostly influential people having connections with ruling parties but in States such as MP, Chhattisgarh and Kerala, the minor mineral lease has been given to the unemployed youths of BPL category from marginalized groups to use it as source of income and employment.
The lease for minor minerals should be given to Panchayats and cooperative of local people as it is the right of the local people over their resources. The Kerala State Mineral Policy, 2009 has given priority on SCs and STs, while granting lease in revenue land and there is mining area welfare programme for the local community.
Chhattisgarh has made provision to provide minor mineral lease to cooperative societies formed by BPL of SC, ST, OBC and women and unemployed youths and revenue of minor minerals goes to the panchayats.
The PESA Act, 1996 allows Gram Sabha with the power to lease minor minerals in scheduled areas but in Odisha this power is with Zilla Parishad. AP, Gujarat, Chhattisgarh and MP have provision of prior recommendation of Gram Sabha for grant of lease of minor minerals.
It is suggested by many that the focus of the State Government must be on mineral resource management rather than going for expanding liquor business which is burdening the State with huge irreparable economic and social loss. The increase in minor mineral royalty can offset the loss of excise revenue if Odisha becomes a complete dry State.
Therefore, it is demanded that the Government must review the lease process and rate of royalty of minor minerals in order to increase revenue collection along with environmental management and local area improvement for the development of the State.
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