Restrict mineral exports: Kumaraswamy

New Delhi, Nov 6 (UNI) Rejecting several recommendations of the Hooda Committee on mining policy, Karnataka Chief Minister H D Kumaraswamy today strongly opposed a move to dilute the powers of the states and sought restrictions on mineral exports as part of measures to conserve and use the ''finite'' resources judiciously.

Addressing a meeting of the Mineral Advisory Council, the Chief Minister also said the provision for reservation of areas for state exploitation and exploration should not be dispensed with.

Mr Kumaraswamy said the Hooda Committee had recommended that if any application for grant of mineral concession was not disposed of by the state government within the stipulated time, the power to decide such application should be transferred from the state government to the central government.

''This recommendation will have serious implications and therefore cannot be accepted by the state. This provision deprives the state of their inherent power over mineral resources which are vested with the state, as per the Karnataka Land Revenue Act (Section 17),'' he said.

He said the Centre had claimed that Karnataka had reserves sufficient to last a century and therefore no restrictions should be placed on the export of these resources.

''Clearly this is not an argument that can be advanced to maintain the status quo regarding the mining policy. Also, a lot of these deposits are in ecologically fragile zones and therefore, exploitation of these minerals would neither be feasible nor desirable in such areas...While I am not suggesting a complete ban on exports, I am of the opinion that there should be restrictions on exports of these valuable minerals.'' On area reservation, he said that in the absence of such a provision the existence of PSUs itself would be at stake. Hence, the provision for reservation of areas for state exploitation and exploration should not be dispensed with.

While some of the recommendations, such as fixation of royalty on ad-valorem basis and infrastructural developments in the mineral areas were long overdue and welcome, some other amendments pertaining to value addition and procedural changes with reference to size, tenure, criteria for grant of Reconnaissance Permits, Prospecting Licenses and Mining Leases, had not been adequately addressed which would affect the national interest, both in short and long term, he said.

UNI SN VD HT1430