Naveen pushes for value addition in grant of mining lease

The Orissa government has urged that 'value addition' should be recognized as the main consideration for grant of mineral concessions for direct applications.

The demand was made by the state Chief Minister during his meeting in New Delhi today with the Union minister of mines B K Handique and Union finance minister Pranab Mukherjee, chairman of the Empowered Group of Ministers for finalization of the Mines & Minerals (Development & Regulation) Bill-2010.

"Value addition should be recognized as the main consideration for grant of mineral concessions for direct applications. Competitive bidding should be the general methodology for grant of limited natural resources since this will ensure a transparent mechanism and maximum gains to the state and the community”, Patnaik said during the meeting.

"The financial bid component of competitive offers should provide due consideration for the value of mineral property to the advantage of the state. In addition, the state government should have the power to restrict grant of concessions keeping in view the total availability and future utilization”, he added.

For Scheduled Areas, predominantly inhabited by tribals, there should be a special provision for their rapid development as these areas paradoxically continue to remain the most backward in spite of the presence of abundant mineral resources. He also stated that a provision of reservation of mineral bearing areas for state PSUs should be considered to meet the needs of the mineral based industries in the state.