One Million Jobs loss due to Ban of Mining.
Bengaluru: Ban on mining and
exporting of iron ore has led to jobs loss for a million people in the two
mineral-rich states of Goa and Karnataka, a joint study by an industry chamber
and a private bank said on Thursday.
"Export
ban after the 2008 global meltdown resulted in drastic fall in mineral
production, as export of iron ore from Goa and Karnataka plunged to 14 million
tonnes last fiscal (2013-14) from 117 million tonnes in 2009-10," said the
study conducted by the Associated Chambers of Commerce of India (Assocham) and
Yes Bank.
The study titled, "Mining: Building
a sustainable development framework for inclusive growth", noted the
Indian mining sector was saddled with logistic inefficiencies, economic,
bureaucratic, environmental and a host of capacity issues due to lack of
coordination between various agencies.
"Illegal mining, regulatory issues,
policy gridlocks, inadequate supporting infrastructure and legal cases are
stalling the sector`s growth and affecting a million people directly and
indirectly," said Assocham secretary general D.S. Rawat in the study.
Noting that lack of central planning was
leading to procurement delays, he called for efficient rail and road
transportation for quicker movement of iron ore for consumption by steel
producers.
Calling for radical policy initiatives
such as single-window clearance for greenfield and brownfield projects to
enable greater participation by private sector, Rawat said boosting production,
improving financing across the value chain and promoting sustainable practices
would ensure responsible mining in compliance with law.
"Rapid urbanisation and growth in
the manufacturing sector will fuel up to 9-11 per cent annual increase in
demand for metals and minerals," the study said.
As the mining industry, comprising small
and medium enterprises (SMEs) is involved in surveying, exploration and other
mining activities, the stakeholders have to tap innovative funding sources, as
the recent judicial and regulatory developments in the sector have dried up new
funding from banks.
"Limited geological and exploration
expenditure, weak law enforcement, lack of coordinated approach in
decision-making, human resource and technological gaps and insufficient
investments are challenges daunting the sector," Rawat noted.
The study has suggested a time-bound
plan to monitor mining activities, introduction of a single-window system to
centralise functions of all ministries/agencies to expedite approval processes
and offer information to boost investor confidence in the sector.
