Pointing to the threat of returning to the age when agitators and frustrated locals had forced the mining activities in some parts of Jharkhand to come to a grinding halt, Chief Minister Hemant Soren made some blunt submissions before the visiting team of 14th Finance Commission on Thursday.
The CM was particularly blunt about the State had to live with due to “irresponsible and arbitrary” ways of mining activities by PSUs and private companies in the State.
Speaking his mind before the Commission headed by former RBI Governor YV Reddy the CM said that he was a product of a political party that had been reflecting the sentiments of the people aggressively. “There are mismatches on various issues and our demands should be seen in practical ways. I belong to JMM which had stopped mining causing hue and cry in the entire country. Jharkhand has been poshak (savior) like India was under Britishers but has now turned into shoshit (exploited). The State has been turned up as a cattle field for the rest of the country,” said the fuming CM.
He was referring to the resentments against mining activities counting in the mineral rich areas that, he said, had caused massive devastation to natural environment, agriculture, human health and local means of livelihood without giving much in return. The CM also counted this as one of the main reasons behind leftwing extremism growing leaps and bounds in the State.
“We get about `3,000 crore every year as royalty out of mining activities whereas `40,000 crore goes to the Centre’s kitty! We know the ground reality. Fund is not the only issue but the State was formed to use internal resources for the deprived sections which have not been done so far,” argued Hemant Soren.
Data with the Finance Department suggest that non-revision of royalty on coal only is costing the State nearly `450 crore every year. It was 21.30 per cent of the basic price of the mineral earlier which has come down to 14 per cent.
It was demanded to take it up to at least 20 per cent of the basic prices and similarly to other minerals. Currently the Centre sticks to partially ad-valorem formula for deciding the royalty.
Chief Secretary RS Sharma also echoed the CM’s views and asked whether the wealth was a boon or a bane for the State. “Coal is masking our poor people as rich. Royalty is very small in terms of negatives it has,” said the CS but at the same time clarified that the State did not want to be in confrontation with the Centre by taking steps as harsh as stopping mining operation.