Date | Sept 27, 2016:
Only around 700 mines have qualified for the star rating which is aimed at promoting sustainable development practices, including scientific and efficient mining.
Of around 3,844 operational mining leases in the country, 1,800 are functional. Work in rest of the mines have been stalled due to issues such as legal problems and renewals.
The five-star rating system, designed by the Indian Bureau of Mines (IBM), is aimed at building a compliance mechanism for mining lease holders who need to follow all environmental safeguards. It means recognising good performers in the sector while encouraging all operators to strive for excellence. In future, star rankings will also come in handy for obtaining faster green clearances.
“Only 700 mines will be entitled for star rating for the reporting year 2015-16 as rest of the mines were operational for less than six months (180 days) because of various reasons,” said R.K. Sinha, controller general, IBM.
This comes in the backdrop of the National Democratic Alliance (NDA) government’s plan to increase the share of mining sector in the country’s gross domestic product (GDP) by one percentage point over the next three to four years. Currently, mining contributes around 2-2.5% to India’s GDP with the government projecting a GDP growth of 7-7.75% for the current financial year.
The mines which were operational for less than six months are that of iron ore, bauxite, limestone and others. The rating was to initially cover major mineral deposits and operational leases spanning more than 180 days for the reporting year.
“Because of the poor market conditions, many iron ore and limestone mines remained closed, due to which they have not qualified for the star rating,” Sinha said, adding that next year the number of mines is likely to increase as many mines are stuck due to environment and forest clearances. Also, in many cases, the lease has not been extended by the states.
The rating system also targets to address socioeconomic issues such as resettlement and rehabilitation, local community engagement, welfare programmes and final mine closure.
Queries emailed to the mines ministry spokesperson on 23 September remained unanswered.
The ratings award ranges from one to five stars to the leasees, depending on their efforts towards meeting the targets of the framework. Recently, the Noamundi iron ore mine of Tata Steel Ltd, located in West Singhbhum, Jharkhand, was awarded five stars.
A senior mines ministry official, requesting anonymity, said the process of making fresh mineral conservation and development rules, 2016 is on, after which miners will be given three years’ time to operate mines with a mandatory four-star rating.
Experts, however, think that star rating cannot work until regulatory framework is there at the state and central level.
“Star rating of mines is basically a non-starter. Also, it does not provide for any kind of incentives to miners. Capacity of state directorates needs to be increased to monitor these mines,” said S. Vijay Kumar, former mines secretary.
IBM has launched a portal for online filling of the template for star rating of mines, which will be done on the basis of self-evaluation by miners. After this is done, it’s vetting will be done by IBM. The online portal has been developed by IBM in association with Hyderabad-based National Institute of Smart Government.
(Source: http://www.vccircle.com/)