Fulfil local industries' demand first, says Raman Singh

Chhattisgarh Chief Minister Raman Singh has said precious minerals should help contribute to the country’s growth, adding exporting iron ore should be treated as a crime. “It is very unfortunate that we are exporting iron ore for the survival of industries in other countries,” he said.

Singh was speaking at Business Standard Samriddhi, an annual Business Standard Hindi event that brings together representatives of the government, business and academia to focus on local economic challenges.

The CM criticised the Union government’s policy of facilitating state-run National Mineral Development Corporation (NMDC) in exporting the majority of its production. NDMC has major mining facilities in mineral-rich Chhattisgarh.

Singh questioned how could states with mines not secure even 40 per cent of the iron ore, adding NMDC had been exporting about 60 per cent of the ore it mined from the Bailadila deposits (in the southern part of the state). “Are we opening the mines only for exporting? There should be a policy that public sector undertakings (PSUs)… should fulfil the raw material demands of local industries first. The Union government can take the decision of amending the policy now,” he added.

He said PSUs should spend their profits on advancing mining technologies to enhance production. “We have been using the three- to four-decade-old mining technology, while China and South Africa are using advanced technologies that have increased production manifold,” he said.

He added the Centre’s policy paralysis was hurting industrial development. Policymakers were confused, he said, adding there was no coherent mining or power policy in the country. “Policies should be designed for the best and transparent use of the rich minerals available in different states,” Singh said.

Critisising the Centre’s ‘no-go’ policy, which demarcated ecologically-sensitive areas, Singh cited the example of an industrialist who had been allotted a mine after he had completed all formalities. Just before he was about to start mining, the area was declared a ‘no-go’ one.

Singh said the first question industrialists asked before investing in the state was, “Why Chhattisgarh?” To this, he said, “You can run the factory in three shifts.” This, he said, was possible because the state had enough power.

Chhattisgarh, which accounts for about 17 per cent of the country’s coal reserves, has surplus power. The state has held two road shows (in Delhi and Bangalore) to attract investors. A meeting of global investors is slated to be held in Naya Raipur, the state’s new capital, on November 2 and 3. It is expected at the meeting, various industrialists would announce their investment plans for the state.

“By the end of the 12th Five-Year Plan, Chhattisgarh’s share to the country’s core sector would be 25 per cent,” Singh said, adding, “We have reached a position from where there is no looking back.” Earlier, Chhattisgarh was termed backward, and people were migrating from here in search of jobs. “Now, the state is providing jobs to others,” he added.

On the rail corridors that would connect mines and industrial pockets in the state, Singh said earlier, the Union railway ministry had expressed reservations on the proposal, especially as the project entailed funding of Rs 10,000 crore. However, Singh said he was able to convince the authorities to go ahead. “We made it clear we didn’t require funds and the project would be completed on a public-private partnership model,” he said.

Singh also said he supported the proposed Food Security Act, which sought to ensure a fixed amount of grain and pulses at subsidised prices to all poor households. He said Chhattisgarh’s annual budget of Rs 40,000 crore was inadequate and needed to be raised to Rs 100,000-150,000 crore. Though he had been accused of spending money on the poor, Singh said this was “not a misuse, but the right use of each penny”. He said there was no political motive behind serving the poor, adding the state was also trying to ensure health security for all.

Asked whether he was in the race for the post of prime minister, he said there were other people more capable for the job. “I am just a small servant of a small state...I am more worried about the 2013 elections in my state,” he said, adding he didn’t expect the general elections to be held before 2014, as most political parties weren’t prepared for it.