Mines as JVs among locals and miners is the solution for Niyamgiri

Economic Times, July 27, 2013

On Thursday, Palbari, a village in Kalahandi district of Odisha, became the fifth one to say no to mining of bauxite in the Niyamgiri hills. The Dongria Kandha tribals who live here claim to worship the hills and have stoutly opposed any proposal to mine the area for minerals.

Kalahandi is a rather special case: some years ago,Congress vice-president Rahul Gandhi made a dramatic appearance here and promised to behave as the sipahi, or foot soldier, of tribals in Delhi. Niyamgiri is not an isolated case. Ever since land acquisition became an issue that could topple state governments, people have started protesting the takeover of their land for industrial or commercial use.

The issue is sharpest when it comes to mining, because India's mineral resources are heavily concentrated in areas inhabited by tribals, among India's most neglected people. And Schedules V and VI of the Constitution say that all rights, including mineral rights, in tribal land belong to indigenous people.

For India to grow, we cannot afford to leave minerals under the ground. So, an equitable and fair solution has to be found that gives incentives for people to give up land for mining. That can only happen if a significant part of the gains from mining go to people affected by the activity.

One draft of the new mining law proposed exactly this: a district mineral foundation, where a part of the revenues from mining should be parked, for the benefit of the local population. This revenue-sharing proposal with local people, apart from royalties that are shared with the state, should be made into law.

Miners should also form management committees and invite locals on board to run the ventures that operate the mines. Participation in management plus a share of revenue are the way ahead.

This will be in line with a Supreme Court judgment which ruled that minerals belong to the people who own the land and not to the government. Once this landmark judgment is incorporated as policy, mining and the development of the areas where the activity is undertaken will become a joint venture between locals and miners, instead of the adversarial relationship that exists today.