Thursday, January 21, 2010

Quarrying for power and pelf

The nexus between politicians and the mining mafia is wreaking havoc in many Indian states. As the Union government finalises a new law to curb illegal mining, Satish Chapparike takes stock of the current scenario

In India’s big, bad mining industry, political clout yields rich dividends. The well-documented depredations of Bellary’s Reddy brothers and Jharkhand’s Madhu Koda are only symptomatic of a much larger malaise that afflicts the nation as a whole. The rot runs very, very deep and there is not quick fix in sight.

In this dusty, dirty industry, key players are allowed to flout rules with impunity and mint money at the cost of the state and the environment.

Everybody down the line benefits from this continuing scam. The nation bleeds. Ideally, when an ordinary Jharkhand mine worker-turned-politician becomes the state chief minister and amasses assets worth more than Rs 4000 crore in next to no time, the alarm bells should go off. It doesn’t. Vested interests within the system conspire to keep the whistleblowers at bay.

This facilitates the rise of the likes of the Reddy brothers, sons of a Bellary police constable. It is claimed that with the money amassed from mining and quarrying, they now enjoy untrammeled proxy power in Karnataka. Even former Andhra Pradesh governor N.D. Tiwari is alleged to be involved in a mining scam. Many mining barons assume the garb of politicians as it helps them manipulate the laws governing the industry. Karnataka and Jharkhand are by no means the only states where such subterfuge is commonplace.

The reason is all too obvious. Thanks to economic liberalisation, the mining industry in India has grown manifold. In 2008-09, it accounted for about 1.94 per cent of the GDP. In this period, the total value of mineral production in India touched Rs 1,15,980 crore. The wealth that mining generates serves as the magnet and the politicians love to get their hands dirty!

Eight states – Chhattisgarh, Jharkhand, Madhya Pradesh, Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Goa – account for nearly 80 per cent of India’s mining activities. In each of these states, mining barons-turned-politicians are wreaking havoc both within the industry and in the corridors of power.

Says K. Bhanumathi of Mines, Mineral and People: “The nexus between politics and the mining industry has become stronger and more visible. The mafia runs a parallel government wherever they operate. There is a complete collapse of the state in these areas.”
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Source :
IIPM Editorial, 2009

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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