Odisha must push for an ISMU branch

February 21st, 2011

Following up on our earlier article, Odisha must push for an ISMU branch. The logic behind Assam getting an RGIPT branch is that Assam has a lot of petroleum related oil wells and refineries. By the same logic, Odisha tops the states in India with respect to its mineral output. Following is from a report in Business Standard.

With minerals produced in the state in 2009-10 valued at Rs 15,317 crore, Orissa has 13.10 percent share of the total value of minerals produced by major states in the country, followed by Madhya Pradesh (7.70 percent), Andhra Pradesh (7.21 percent), Maharashtra (4.92 percent), Gujarat (4.65 percent), Karnataka (3.96 percent), Tamil Nadu (3.21 percent), Rajasthan (2.99 percent), Assam (2.96 percent), West Bengal (2.78 percent).

According to the Economic Survey report (2010-11), the value of minerals extracted in Orissa has gone up by more than four times from Rs 3694 crore to Rs 15,317 crore between 2002-03 and 2009-10 coinciding with the boom in the mineral market during this period.

Orissa boasts of 95 percent of country’s chromite deposit, 92 percent of nickel ore, 55 percent of bauxite and 33 percent of iron ore. Besides, the state has substantial quantity of other minerals and ores like coal, manganese, dolomite, graphite and limestone.

With the iron ore prices spiraling, this commodity naturally leads the pack of minerals in terms of production and value. The state produced 79.7 million tonnes of iron ore in 2009-10 valued at Rs 7976 crore. This is followed by coal (105.5 million tonnes valued at Rs 5548 crore and chromite (3.4 million tonne valued at Rs 1167 crore).

Similarly, iron ore constituted 95.4 percent of the total exports of minerals from the state. About 15 million tonnes of iron ore was exported in 2009-10 valued at Rs 4224 core compared to exports of 0.46 million tonnes of chrome ore valued at Rs 464 crore and 0.25 million tonnes of mineral sand valued at Rs 72.32 crore.

One of the disturbing factors highlighted by the report is that with mining and quarrying sector gradually shifting to labour saving and capital-intensive technology, the total employment in the sector has been decreasing over the years. As a result, the number of direct employment in the mineral sector in Orissa has come down from 55764 in 2005-06 to 43705 in 2009-10.

It may be noted, with mineral deposits mostly occurring in the tribal belt of the state, this sector employs substantial number of tribals.

When ISM was made in Dhanbad, that region was perhaps the leader in mineral output (mainly coal) in the country. Odisha with a variety of minerals needs an ISM branch and we must push for it hard.

Related to that recently the Chief Minister has been concerned about the coal block allocation in Odisha. Following is an excerpt from a report in Economic Times on that.

Orissa government has taken strong exception to the coal ministry’s unilateral decision to allot coal blocks without consulting the state.

Chief minister Naveen Patnaik has shot off a letter to Prime Minister Dr Manmohan Singh urging him to review the allocation of coal blocks in Orissa. The coal ministry has allotted 32 coal blocks with an estimated reserve of about 15,000 million tons to 56 private and government agencies.

Mr Patnaik made it clear that a comprehensive regional master plan should have been prepared prior to allotment of huge number of coal mines in inhabited and environmentally sensitive areas in the state. Focus has to be given for infrastructure development, logistic planning, land requirements, rehabilitation and resettlement, environment impact studies and mitigation measures, the letter said.

Expressing serious concerns over the adverse environmental impact in post operationalisation of such a large number of coal blocks, Mr Patnaik pointed out that coal mining would cause deforestation and air pollution. Sources close to CM’s officer said, the letter also had pointed out that it might not be possible for the state to accommodate new coal mines by jeopardizing its environmental stability. The coal ministry needs to be advised to take a pragmatic and planned approach, keeping the interests and concerns of all stake holders including the state government in mind, the letter said.

For making the 32 coal blocks functional, 325 sq km shall have to be acquired within few years and another equivalent amount of land would be needed for allied activities like coal handling plants, siding, workshop, and residential colonies for project affected people, compensatory afforestation and other infrastructural facilities including roads.

This would lead to massive displacement and consequent socio-economic and environmental crisis, the chief minister is understood to have stated in his missive to the PM. However, such large-scale land acquisition and displacement could be avoided if coal blocks are allotted and developed in a planned and phased manner, Naveen added.

Incidentally, Orissa is already on the throes of severe climate change due to setting up of huge number of coal fired power plants threatening the livelihood of farmers and fishermen who form 70 % of the state’s population shall be severely hit due to irregular monsoons and erratic rainfall patterns.

Most of the power produced shall be transmitted to other states while the people of the state shall be the unwilling victims of the effects on climate change and pollution caused by the huge quantities of green house gases (GHGs) and fly ash generated.

“Coal mining is done either underground or open cast. In Orissa mostly open cast mining is done. When coal surfaces are exposed, pyrite (iron sulfide), comes in contact with water and air forming sulfuric acid. As water drains from the mine, the acid moves into the waterways, and as long as rain falls on the mine tailings the sulfuric acid production continues, whether the mine is still operating or not. Proper and holistic environmental protection measures are not taken by the owners of coal mines”, former director general of Council of Scientific and Industrial Research [CSIR] and currently, chairman, Institute of Advance Technology and Environmental Studies (IATES), P. K. Jena on Thursday told “The ET”.

This reinforces our thought that the civil society andthe government of Odisha must together push for  an ISMU campus in Odisha that will specialize in all the issues mentioned above.

Please add aditional pointers in the comment section. As soon as the Malkangiri sutiation gets resolved we will start a movement to get an ISMU campus to Odisha.

Entry Filed under: From mineral resources to human resources,HRD of Tribals and/or Tribal areas,ISM Campus or upgrade OSME Keonjhar to ISM,Learning from others,Twelfth Plan

1 Writeup

  • 1. ODIA DUDE  |  February 21st, 2011 at 5:53 pm

    Odisha has been contributing a lot to the central exchequer, and yet we get nothing in return. if you look t the way all the major players such as Coal India,Nalco etc that operate in Odisha, you would notice they are totally insensitive to peripheral development including environmental issues, partly because the management of these companies are ignorant or corrupt. They are just looting our resources and give a meagre amount of tax to our state exchequer. This is totaly unacceptable. We must stop the production minerals in our state, until our state becomes a equal partner in the profit sharing.


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