Srikant Jena

Bhubaneswar, July 23: Union minister of state for chemicals and fertilisers Srikant Jena today asked the Orissa government to settle the contentious issue of raw material supply to the proposed Posco project first.

“The issue of provision of raw material for the project needs to be settled in a transparent manner, preferably with a market-linked price mechanism before finalising the land acquisition and other issues relating to the project,” said Jena in a letter to chief minister Naveen Patnaik.

The long-term supply contracts like the one between the Orissa Mining Corporation and the Vedanta for bauxite supplies need to be reviewed and cancelled forthwith in larger interest of Orissa. The raw material supplies should be made available to industry only at the market-linked price, Jena said.

The Union minister, who belongs to Orissa, argued that the state should take control of mineral resources in Orissa, so that it could be optimally utilised for the benefit and economic development of its people. “The mineral should not be used for private gains of few corporate houses,” he said.

Jena also favoured the demand for CBI inquiry into the alleged multi-crore mining scam. “The whole issue should be handed over to the CBI for a thorough and impartial inquiry, so that the real culprits could be unmasked and Orissa saved from colossal revenue loss,” he said.

Attributing illegal mining and tax and duty evasion to low-level of royalty and income received by Orissa, Jena said: “The frequent news reports of illegal mining being carried out in areas outside the leased and in forest areas of Orissa is a matter of serious concern.”

Stating that the report of rampant illegal mining might be the tip of an iceberg, Jena said the recent developments in Karnataka on the mining issues had also brought in focus the need for better regulation of resources in the state. “I am afraid, what is happening in Karnataka today may be true about Orissa also. The illegal mining, which have become an inter-state phenomenon, needs to be curbed effectively.”

Only 5 per cent of the annual mineral wealth was coming to Orissa in the form of royalty while the rest 95 per cent were enjoyed by the lessee — be a trader, an industrialist or a company, he said. “The annual royalty receipt in Orissa are meagre as compared to the enormous mining industry in the state. The trend needs to be reversed,” said the Union minister.

State control of mining resources would not only rectify above anomaly, but also prevent and protect environment by way of proper mining and planned industrialisation, he said.