Mining – Inida
1. Goa cashew output hit by mining activities'
2. Goa's crackdown on illegal mining runs out of steam
3. Meghalaya: Digging deep indeed
4. Mining takes ugly turn in Rane's hometown
5. Sindh inks coal mining deal with EPGC to generate power
6. ArcelorMittal, Posco May Start Building India Plants (Update3)
Mining – Internatonal
7. Zimbabwe says shortlists partners for diamond mine
8. Cabinet promises to give Hr 6.5-billion guarantee for coal industry modernization in 2010
9. Nigeria: 'Illegal Mining Declines by 30 Per Cent'
10. Atlas Mining sends off ninth copper concentrate shipment to China
11. Mining industry slams push for job security clause
12. Officials punished after China mine accidents
Other News
13. Green Industry - need of the hour, says India at Green Industry Conference
14. D. Napoleon gives away National Trust Annual Awards-2009
15. Mineral production during June 2009
16. GOVERNMENT PROPOSES TO TAKE UP PRADHAN MANTRI ADARSH GRAM YOJANA
17. PM asks states to improve NREGs implementation
18. The essence of NREGS
Mining – Inida
Goa cashew output hit by mining activities'
TNN 10 September 2009, 05:51am IST
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PANAJI: Mining in Goa is eating into the state's cashew production and this is becoming a major cause of concern for the cashew cultivators in
the state. Not only has increasing mining activity resulted in lower cashew production, but even the area in which cashew is cultivated has been reduced, said Goa Cashew Manufacturers Association president Madhav Sahakari.
"Some of the best plantations in Sanguem, Sattari and Quepem have been destroyed by mining activities. The production has come down and even the area in which cashew is cultivated has reduced over the years. Mining is eating into the land, especially due to dumping of mining rejects in the cashew plantations," said Sahakari, speaking to the press before the conference of All India Cashew Manufacturers. The conference called the Cashew Quest -2009 will start on Friday in the state.
Ironically, while mining is hitting cashew nut production, Sahakari admitted that old dumps of mining rejects or exhausted pits were ideal for starting plantations.
"Cashew was brought to Goa by the Portuguese for conservation of soil. It can grow on any surface. There have been successful projects where some old mining dumps have been converted into cashew plantations," he said. But there is no data available with the Goa Cashew Manufacturers Association on how many such old dumps have been converted into cashew plantations and what is the cashew yield in these plantations.
Though the cashew industry in other parts of the country is growing at over 10% per annum, industry insiders admit that contrary to their expectations, reliance on imported seeds is increasing by the day. "The Indian production of raw cashews have been constant at around 4.50 to 5 lakh metric tonnes as against the industry's requirement of 13 lakh metric tonnes. This despite the fact that industry which was predominant only in Goa, Karnataka and Kerala is now spread over to Andhra Pradesh, Tamil Nadu, Orissa, Maharashtra, West Bengal, Assam, Meghalaya and Gujarat," said Suresh Zantye, manufacturer and exporter of cashew kernels.
Zantye said that presently India is importing 7 lakh metric tonnes of raw cashew from East and West Africa and also from Indonesia. "However, in future, imports from these countries will dry up and units in India will starve on account of shortage of raw seeds. So there is an urgent need to increase the raw cashew production in the country," said Zantye.
Sahakari said that there are many factors responsible for low cashew production in the state. "We have not given attention to cashew plants and due to this our per plant production is lowest at less than 1 kilogram. Also, though there are government schemes for cashew cultivators, there is no proper co-ordination between the farmers and other constituents," said Sahakari. Besides, the other challenges before the Indian industry are to overcome fragmentation, improve processes and face the transition from manual process to gradual automation.
Goa, which is known for its cashew nuts, cultivates about 20,000 to 25,000 tonnes of raw nuts annually in nearly 50,000 hectares of land. Of these, 80% of the cashew processed in Goa is sold in the open market and the rest is exported. "If global recession has reduced cashew exports in the country by 15%, then the cashew export from Goa has gone down by 5%. However, in Goa we are not really feeling the heat of recession as there is a big, local market for cashews," said Sahakari.
http://timesofindia.indiatimes.com/news/city/goa/Goa-cashew-output-hit-by-mining-activities/articleshow/4992916.cms
Goa's crackdown on illegal mining runs out of steam
IANS 9 September 2009, 03:48pm IST
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PANAJI: More than a week after the deadline issued by the Goa State Pollution Control Board (GSPCB) for submission of documentation from 78
mining companies, the board is still "not sure" about the number of companies who have complied with the notice, indicating that its proposed action against illegal mining may have hit a trough.
"We are still in the process of compiling the number of replies received. We do not know exactly how many companies have responded," GSPCB chairman Simon D'Souza said.
The notice issued by the GSPCB on Aug 14 had directed 78 mining lease operators to submit copies of their clearances obtained under the Forest Conservation Act (FCA) and from the ministry for environment and forests within 15 days.
"The compilation may take some time. If some mining companies do not have proper documentation, we will be forced to issue a show cause notice and subsequently ask the mines to stop operations," D'Souza said.
Apart from the 78 mines in question, the GSPCB had also issued 'stop work' orders to 13 other mines who were extracting ore without requisite permissions from the forest and wildlife departments.
While Sesa Goa has managed to obtain a stay on the 'stop work' order from the administrative tribunal for its Codli mine in south Goa, three mining concerns operated by Dempo group of companies (now a part of Sesa Goa) among others have also approached the tribunal for a stay on the GSPCB's order.
The hearing has been scheduled for Thursday.
Goa's 103 mining leases extract 33 million tonnes of iron, bauxite and manganese ore which is exported largely to China and Japan.
Environmentalists and the opposition in Goa have alleged that nearly 18 percent of the ore exported from Goa was extracted by illegal mining outfits.
Under sustained pressure, the state government has now brought 91 out of the 103 operating mines in the state under its scanner.
http://timesofindia.indiatimes.com/news/environment/pollution/Goas-crackdown-on-illegal-mining-runs-out-of-steam-/articleshow/4990382.cms
Meghalaya: Digging deep indeed
Collection area for the mined coal
Hidden beneath the pine fringed masses and the silver tinged clouds lies the beautiful land of Meghalaya. It is a place in which nature has played its greatest role. The gorgeous green flourishing vegetation, pristine air loaded with the scents of nature and cool, exotic hills presents Meghalaya with perfect conditions to provide rejuvenating peace and relief to the people.
Rivers and streams flow through some of their dark, damp chambers, lending an other – worldly beauty to the caves that pockmark the state, the roofs of which sometimes hang so low that explorers have to crawl on all fours to get through.
There is much to explore in these caves, be it from the diverse life forms or the geomorphological features which are records and proof of climatic changes through the ages. However, these treasures in the Jaintia Hills of Meghalaya may be forever lost even before they are fully appreciated because of the rampant coal mining in the area which has about 40 million tones of coal reserves.
The Jaintia Hills, one of the seven districts of Meghalaya occupies the eastern part of the state. It covers an area of 3819 kms which is 17.03% of the total geographical area of the state. The Jaintia Hills district of Meghalaya is a major coal producing area and places like Sutnga, Lakadong, Musiang – Lamare, Khliehriat, Ioksi, Ladrymbai, Byrwai, Chyrmang, Bapung, Jarain, Shkentalang, Lumshnong and Sakynphor being the main coal bearing areas of the district (according to the book ‘Geography of North East’). The coal in the area is found imbedded in sedimentary rocks, sandstones and shale of the Eocene age. The three coal seams vary from 30 to 212 cms in thickness.
While the government has no idea how it is going to control it, indiscriminate mining has begun to threaten the famed Krem Liat prah – Um Lm – Labi cave system in Jaintia Hills, the longest in India at 30.9 km. Jaintia Hills is part of the Meghalaya plateau made of rocks belonging to the Archean (2.4 – 4 billion years ago and Tertiary periods (65 million to 2.588 million years ago). Meghalaya has the largest concentration of caves in the subcontinent, about a thousand caves were discovered in the past decade and most of these are yet to be explored and mapped.
Over the years, 118 cave passages, stretching across 148 km, have been mapped on the Nongklieh – Shnongrim ridge, 60 kms from Jowai town in Jaintia Hills. Cave sediments and stalagmites – conical limestone pillars rising from the floor – represent an undisturbed chronological repository of records of climatic change which can stretch back to one million years. Caves hold the key to understanding world climatic changes. Taken in their totality, the caves of Meghalaya should be considered national and archaeological heritage sites that call for concerted protection at both the national and state levels.
Besides being geologically important, these caves are rich in bio – diversity, teeming with fish, salamanders, spiders, woodlice and millipedes, which have adapted to the cave environment – they have no eyes, are white and have long antennae. The caves are also home to three bat species – the Long Winged Bat, Dobson’s Long Tongued Fruit Bat and the Kashmir Cave Bat. The number of bats has reduced significantly, which is alarming because they control pests. Their current population is between 3,000 and 5,000.
Coal extraction in Jaintia Hills is done by primitive mining method commonly known as ‘rat – hole’ mining. In this method, the land is first cleared by cutting and removing the ground vegetation and then pits ranging from 5 to 100 m are dug vertically into the seam for extraction of coal, which is brought into the pit by using conical baskets or a wheel barrow. The coal is taken out of the pit and dumped on a nearby unmined area, from where it is carried to the larger dumping areas, from where it is carried to the larger dumping places near highways for its trade and transportation. The entire process of mining is done manually employing small implements. Most of the mining activities are small scale ventures controlled by individuals who own the land. A large amount of soil runs off and gets swept inside the caves and coats the stalagmite and calcite formations with mud. In many areas, sandy clear underground streams are getting replaced by torrents of mud.
Coal seams, 30 cms to 212 cms thick, occur embedded in sedimentary rocks, sandstone and shale of the Eocene age (54 – 38 million years ago). During mining, large amounts of shale are brought to the surface as mine spoil and as by – products of coal cleaning. Iron pyrites in shale decompose when exposed to air and water and produce sulphuric acid and ferrous hydroxide. These flow into the surface and underground water, making it unsuitable for aquatic life. Then there is another threat; increased flooding of the caves. Mining may be partly responsible for this as water gets accumulated in the excavate pits and seeps into the caves. Higher water levels inside the caves erode sediments. Coincidentally, caves are adjacent to huge reserves of coal and limestone.
The water bodies of the area are the greatest victims of the coal mining. The problems of water quality degradation and its adverse impacts on availability of potable and irrigation water, soil quality, agricultural productivity and bio – diversity in the area have been attracting increasing attention of the people.
The main characteristics of the coal found in Jaintia Hills are its low ash content, high volatile matter, high calorific value and comparatively high sulphur content. The coal is mostly sub – bituminous in character. The physical properties which characterize the coal of Jaintia Hills districts are that it is hard, lumpy, bright and jointed except for the coal from Jarain which comes in both soft and hard types. The composition of the coal which was revealed through chemical analysis indicates moisture content between 0.4% to 9.2%, ash content between 1.3% to 24.7%,and sulphur content between 2.7% to 5.0%. The calorific value ranges from 5,694 to 8,230 kilo calories per kilogram.
The extraction of coal creates a variety of impact on the environment before, during and after the mining operation. The extent and nature of the impact can range from minimal to significant damage depending on a range of factors associated with ongoing mining processes as well as post mining management of the affected landscapes. The sensitivity of the local environment also determines the magnitude of the problems. Usually, an ecologically fragile environment has been found highly vulnerable, attracting long term ecological impact.
Mining operations in Jaintia Hills have undoubtedly brought wealth and employment opportunities in the area. However, simultaneously, it has led to extensive environmental degradation. Large scale denudation of forest cover, scarcity of water, pollution of the air, water and soil and degradation of agricultural lands are some of the conspicuous environmental implications of coal mining. Besides these, the caving in of the ground and subsidence of land and haphazard dumping of coal and overburdening have deteriorated the aesthetic beauty of the landscape.
Historically, coal mining has been a very dangerous activity and the list of historical coal mining disasters is a long one. Open cut hazards are principally mine wall failures and vehicular collisions. Underground mining hazards include suffocation, gas poisoning, roof collapses and gas explosions. Chronic lung diseases such as pneumoconiosis (black lung) were once common in miners leading to reduced life expectancy. The miners work in really dangerous conditions without proper safety measures, thus endangering themselves while extracting this black fuel. Another hazard which is regularly faced is exposure to black damp which is a mixture of carbon dioxide and nitrogen which can cause suffocation.
Improvements in the methods of mining such as the longwall method of mining, placement of hazardous gas monitors, gas drainage and ventilation will reduce the risks of rock falls, explosions and unhealthy air quality if implemented. These precautions, if implemented by the mine owners, will reduce the danger to the lives of the miners and improve their overall health.
Water in mining areas generally varies from brownish to reddish colours. Siltation of coal particles, sand, etc, Acid Mine Drainage and formation of iron hydroxide are some of the major causes of change in water colour. Many miners continue to die annually, either through direct accidents in the mine or through adverse health consequences from working under poor conditions.
Formation of iron hydroxides is mainly responsible for orange or red colour in the mining areas. Iron hydroxide is a yellowish insoluble material commonly formed in water bodies of the coal fields. It is this material that stains streams and is responsible for the red to orange colour of the water. When elevated levels of iron are introduced into natural waters, the iron is oxidized and hydrolyzed, thereby forming precipitates of iron hydroxides.
Layers of rock and earth above the coal removed during mining commonly contain traces of iron, manganese and alluminium and can also contain other heavy metals. These metals can be dissolved from mining sites through the action of acid runoff or can be washed into streams as sediment. Most of the water bodies in the coal mining areas of Jaintia Hills have been found to contain high concentrations of various metals. Many of these metals, though commonly found, can be toxic to fish and other aquatic organisms when present in high dissolved ratios.
Meghalaya is a dream come true. It is a cheerful territory of splendid beauty in terms of landscape, flora and fauna. This God given beauty will get lost if the state is left to the whims and fancies of people whose sole intention is to get rich, regardless of the consequences. Is this beauty something we can willingly sacrifice in the pursuit of wealth?
http://www.easternpanorama.in/index.php?option=com_content&view=article&id=530:meghalaya-digging-deep-indeed&catid=6:contents&Itemid=10
Mining takes ugly turn in Rane's hometown
Prafulla Marpakwar , TNN 10 September 2009, 01:29am IST
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MUMBAI : A month after the formation of an all-party forum to oppose mining and thermal power projects in the coastal Sindhudurg district,
industries minister Narayan Rane has described the front as politically motivated, claiming that it has been set up in view of the assembly polls. Sindhudurg happens to be Rane's hometown.
Cutting across party lines, former Congress legislator Pushpsen Sawant, BJP leader Pramod Jathar, Shiv Sena leaders Parshuram Uparkar, Shivram Dalvi and Vaibhav Naik, NCP leader Sandesh Parkar and anti-SEZ activist Jayendra Parulekar had joined hands to oppose the proposed mining and power projects in the eco-sensitive Sindhudurg district. The forum is concentrating on three assembly constituencies, Sawantwadi, Malwan and Kankavali - represented by Rane - and will support candidates who are against the projects.
They feel that if the state government grants permission for the mining and thermal power projects in the area, it will result in massive pollution and environmental degradation of the entire region. In fact, the front has now made it clear that in the ensuing polls, it will defeat the Congress, particularly Rane, as he is openly promoting the mining and thermal power projects.
The front believes that the state has granted permission for the Rs 4,500 crore mining project in Dodamarg area and two thermal power plants in the same region. The leaders said the mining lease will be operational for well over 13 years, while thermal power plants will be in use for next several decades.
BJP leader Vinod Tawde said his party will oppose any project that will have an adverse impact on the environment. "Our policy is very clear. We will not allow either a mining project or thermal power plant in the eco-sensitive district. We will support all agitations against such kind of projects,'' Tawde said.
Erstwhile Sena leader Rane, now with the Congress, said that the front has been formed, keeping in view the October 13 assembly polls. "The front leaders have not done adequate home work,'' he said, adding that his government has not granted any permission either for a mining or thermal power project in the Sindhudurg district. As such, the agitation launched by the forum was based on wrong information and inadequate homework, he said. "Some mining activities are in progress in Sindhudurg district, but they have been going on for well over five decades. No new permission for mining has been granted in the recent past. It is a similar case with the thermal projects. No permission has been granted. If the forum has any doubt, I am prepared for a discussion or debate.''
Senior Shiv Sena leader Subhash Desai said that discontent was brewing in the entire Konkan belt in view of the decision of the state government to grant permission for a mining project on a long lease and for the thermal power projects. "From the beginning, we have opposed anti-environment projects in the Konkan region. If such projects given granted permission, the Sindhudurg district will lose its basic character of a tourism district,'' he said.
According to Rane, ever since he joined the cabinet more than a decade ago, during the Sena-BJP rule, he has taken measures for the development of the Sindhudurg district. "During the last 12 years, I was instrumental in securing Rs 12,000 crore for the development of the district. In addition, owing to my efforts, a package of Rs 4,000 crore was approved for the development of the Konkan region.''
Rane pointed out that a section of forum leaders had contested the recently concluded the Lok Sabha polls on the same plank.
On Wednesday, supporters of Rane clashed with BJP activists at Kankavali. The incident occurred outside the BJP party office around 10 pm. Seven to eight people were injured. According to sources, the two groups clashed over a plot of land at Kanedi Bazaarpeth, which is located 12 km from Kankavali.
http://timesofindia.indiatimes.com/news/city/mumbai/Mining-takes-ugly-turn-in-Ranes-hometown/articleshow/4992577.cms
Sindh inks coal mining deal with EPGC to generate power
Thursday, 10 Sep 2009
Dawn reported that Sindh government and Engro Power Generation Company have signed an agreement on coal mining to generate power from Thar coal block number 2.
The accord was signed in a ceremony on September 8th 2009 at the CM House. Mr Syed Qaim Ali Shah CM of Sindh, Mr Syed Murad Ali Shah provincial minister for irrigation and others were present on the occasion.
While talking to the journalists, Mr Sindh Syed Qaim Ali Shah said that Thar coal is the treasure of Sindh and many people did not want this coal to be extracted, adding that Sindh should make progress. The government would exploit this coal treasure and will make Sindh prosper by producing electricity from it.
He indicated that the EPGC would install power house as well which would generate 600 MW to 1000 MW electricity. He added that the local people would be made the part of the mining process of the Thar coal and they would be provided job opportunities. The Thar coal is the property of the people and the people of Sindh would get benefit from it.
(Sourced from www.dawn.com)
http://steelguru.com/news/index/2009/09/10/MTExMTkw/Sindh_inks_coal_mining_deal_with_EPGC_to_generate_power.html
ArcelorMittal, Posco May Start Building India Plants (Update3)
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By Debarati Roy
Sept. 10 (Bloomberg) -- ArcelorMittal, the world’s biggest steelmaker, and South Korea’s Posco may start building $32 billion of factories in India next year as domestic demand defies the global recession, India’s Steel MinisterVirbhadra Singh said.
“Posco is very keen and would like to start tomorrow,” Singh said in an interview. “I’m hopeful Posco will begin work next year. ArcelorMittal should also be able to start next year, at least on one of its two plants.”
Posco, ArcelorMittal and Indian rivals such as Tata Steel Ltd. are rushing to build factories in the country as demand increases for cars, roads and bridges. Prime Minister Manmohan Singh’s administration, which returned to power in May, aims to resolve land disputes and delays in allocating mining licenses to mills to help achieve as much as 9 percent economic growth.
“Posco and ArcelorMittal will build their plants once they are guaranteed iron ore assets and problem-free land in the country,” said Rakesh Arora, an analyst at Macquarie Group Ltd. in Mumbai. “The government is trying to simplify mining laws and once this is done, the companies will definitely build the plants here because demand is assured.”
Mittal Meeting
ArcelorMittal Chief Executive Officer Lakshmi Mittal met the steel minister recently to discuss the problems of acquiring land and mining licenses.
“L.N. Mittal met me a few days ago and put forward the problems,” the steel minister said. “I’m using my good offices to see the state governments expedite the process. ArcelorMittal is looking at how the global market shapes up and wants to synchronize its production with the global situation.”
Posco, South Korea’s biggest mill, rose 2.5 percent to 478,500 won at the close of trading today in Seoul. ArcelorMittal gained as much as 1.3 percent to 26.45 euros and traded at 26.33 euros, up 0.8 percent, as of 10:41 a.m. in Amsterdam.
Pohang-based Posco’s $12 billion, 12 million metric ton plant in eastern Orissa state, potentially the single-biggest overseas investment in India, has been delayed since plans were drawn up in 2005. ArcelorMittal aims to build a mill in Orissa state and another in Jharkhand with a total capacity of 24 million tons and at a cost of $20 billion.
“I’m talking to state governments to ensure the companies get mining leases and can start work,” the steel minister said yesterday in his Udyog Bhavan office in New Delhi, without specifying the measures he plans to implement. “India needs extra capacity because soon we’ll not be able to meet demand.”
Growing Demand
India’s steel demand is set to grow irrespective of global developments, S.K. Roongta, chairman of Steel Authority of India Ltd., said today in New Delhi, after the company’s annual general meeting. Production at Steel Authority, India’s second-largest steelmaker, will rise 10 percent this fiscal year from the previous 12 months, he said.
The company may set up a 10 million ton plant in Jharkhand if it is given assurances of iron-ore supplies, Roongta said.
ArcelorMittal is looking to build its plants “as soon as possible,” Vijay Kumar Bhatnagar, head of the India unit, said in a phone interview yesterday. “Of the two projects, we are slightly ahead in the Jharkhand project as we have secured a mining license in the state,” he said.
The company secured a permit to mine iron ore in 500 acres of land in Jharkhand in June 2008, three years after an accord with the state government to build the plant. The states of Jharkhand, Orissa and Chhattisgarh account for 70 percent of India’s coal reserves and 55 percent of iron ore, according to McKinsey & Co.
Uttam Galva
Luxembourg-based ArcelorMittal agreed to buy a 5.6 percent stake in India’s Uttam Galva Steels Ltd. on Sept. 3, its first acquisition in the South Asian nation. The purchase may help India-born Mittal gain from demand forecast by the government to grow as much as 10 percent in the year ending March 31.
India this year overtook China in car exports and is challenging Thailand and South Korea as an alternative production center in Asia.
Posco expects to start building the plant, once it secures the rights to use the land, spokeswoman Choi Youn Joung said in an telephone interview in Seoul today. The company has yet to win a license from the Orissa government to mine iron ore.
“The issue has to be resolved by the local people and the state government,” Steel Minister Singh said. “I am ensuring the process is expedited,” without giving details.
India plans to cut permit delays and attract overseas capital through “simpler” mining laws, Mines Minister B.K. Handique said last month. The legislation will be presented to parliament in the winter session this year, he said.
To contact the reporter on this story: Debarati Roy in Mumbai atdroy5@bloomberg.net
Last Updated: September 10, 2009 05:40 EDT
http://www.bloomberg.com/apps/news?pid=20601091&sid=amg.JKbzR_W8
Mining – Internatonal
Zimbabwe says shortlists partners for diamond mine
Thu Sep 10, 2009 7:02am GMT
By Nelson Banya
HARARE (Reuters) - Zimbabwe has shortlisted foreign investors to partner in mining diamonds in the Marange fields at the centre of a dispute between the government and African Consolidated Resources, a minister said late on Wednesday.
Mines Minister Obert Mpofu said the government would insist on retaining 50 percent shares in the mining project.
The southern African country adopted an empowerment law in 2008 to compel foreign-owned firms -- including mines and banks -- to give up at least 51 percent control to locals.
A new unity government set up by bitter rivals, President Robert Mugabe and Prime Minister Morgan Tsvangirai raised hopes among unsettled investors, who hope the law could be reviewed. Tsvangirai has said the government would adopt friendlier laws.
Mpofu told Reuters in an interview that Zimbabwe was seeking equal control of the Marange diamond mining project in negotiations with the prospective investors.
"Some companies have been shortlisted, but because of the distractions that investors to Zimbabwe have been facing, these companies have said they would rather keep the negotiations under tight wraps," Mpofu said.
"It is a high capital project, but one that has the advantage of quick returns. We are still negotiating on the basis of a 50-50 partnership."
Mpofu declined to disclose the potential investors, saying the negotiations were at a sensitive and delicate stage.
The Marange diamond fields are at the centre of a dispute between the Zimbabwe government and the London-listed African Consolidated Resources (ACR), who held the claim until it was revoked in 2007.
A Kimberly Process review team -- mandated to monitor and regulate diamond trade globally -- visited Zimbabwe's diamond mines in July and urged an "immediate demilitarisation" of the Marange fields and measures to stop smuggling after thousands of panners descended on the site.
The World Diamond Council last month called for Zimbabwe's suspension from diamond trade if the country failed to implement the Kimberly Process recommendations or risk suspension.
Murowa mine in central Zimbabwe, majority owned by Rio Tinto, is the country's largest diamond mine, while the privately-run River Ranch mine is the second.
Mpofu said Zimbabwe was consulting the mining industry on proposed amendments to mining legislation, which would be tabled in the next parliamentary session that begins later this month.
"The desired outcome of this particular piece of legislation is to ensure that we do not compromise the indigenisation policy, while at the same time avoiding to discourage investment," Mpofu said.
"We want a win-win situation ... an outcome of thorough and extensive consultations that are underway as we speak."
Mpofu said Zimbabwe would host a two-day mining conference in Harare, starting on September16, to give existing and potential investors an opportunity to interact with the government.
"There has never been a better time than now for investors to gain access to good mineral resources in the country," he said.
http://af.reuters.com/article/investingNews/idAFJOE58905820090910?sp=true
Cabinet promises to give Hr 6.5-billion guarantee for coal industry modernization in 2010
Today, 13:10 | Ukrainian News
The Cabinet of Ministers will give UAH 6.5 billion as government guarantees to modernize the coal industry in 2010, Prime Minister Yulia Tymoshenko said addressing a meeting with heads of scientific institutions and machine-building enterprises rendering services for the coal industry.
"We are planning to allocate UAH 6.5 billion to upgrade the industry," she said.
The government wants to conduct large-scale modernization of coal mines to foster dynamic development of the coal industry in 2011, the prime minister said.
As Ukrainian News reported, the Cabinet of Ministers intends to offer government guarantees for foreign investments to be put in modernization of coal mines in 2010.
Tymoshenko said in late August that the government would likely direct UAH 1.6 billion to back up the coal industry by 2010.
http://www.kyivpost.com/nation/48410
Nigeria: 'Illegal Mining Declines by 30 Per Cent'
.
10 September 2009
Abuja — The Miners Association of Nigeria said in Abuja on Tuesday that illegal mining had declined by 30 per cent compared to previous years.
The National President of the Association, Mr Sunday Ekosin, said that the development followed a renewed commitment by the association and the Ministry of Mines and Steel Development to integrate illegal miners into the main stream.
Ekosin, who said the move had to "a large extent" successfully led to formalising illegal mining operations, noted that it would be a herculean task to completely eradicate it.
According to him, the solid minerals industry is experiencing a "hard time" as it is fast on the decline and contributing poorly to the nation's GDP.
He said that it was disheartening that a sector, with huge economic potential, contributed the lowest to the 2008 GDP as published by the National Bureau of Statistics.
Ekosin called on the Federal Government to rescue the industry by making access to loans easier and appealed to financial institutions to emulate First Bank Plc which, he said, had established a solid mineral desk to aid mining activities.
He urged the banks to quit "playing to the gallery," saying that mining, a capital intensive business with long gestation period, could only be developed with the support of banks. (NAN)
http://allafrica.com/stories/200909100281.html
Atlas Mining sends off ninth copper concentrate shipment to China
09/10/2009 | 03:11 PM
Atlas Consolidated Mining and Development Corp. said its ninth shipment of copper concentrates has already been sent to Qingdao, China.
Approximately 5,574.081 wet metric tons of copper concentrate were loaded onto the MV Bizan at the Sangi Port, the company said in a disclosure to the Philippine Stock Exchange (PSE).
Worth $5,889.40 per metric ton, the shipment contains 28.55 percent of copper, 2.38 grams of gold per ton, and 26.15 grams of silver per ton, the company said.
The shipment came from a copper mine in Toledo City, which is run by Carmen Copper Corp. (CCC), the company’s subsidiary.
The shipment forms part of the CCC’s Offtake Agreement with MRI Trading AG.
Ever since operations began, CCC has already exported 48,650.491 of copper concentrates.
Another 5,500 wet metric tons are expected to be shipped before the end of September, the company said. - GMANews.TV
http://www.gmanews.tv/story/171965/atlas-mining-sends-off-ninth-copper-concentrate-shipment-to-china
Mining industry slams push for job security clause
Thursday, 10/09/2009
Mining companies say a demand for a 'job security clause' for mine workers is about union control, not workers' rights.
The CFMEU wants the clause put into new enterprise agreements with mining companies.
It would ensure ongoing employment when mines close and a windback of the number of contractors working on minesites.
Workers from Xstrata's United Colliery coal mine in NSW Hunter Valley have gone on a four-day strike to support the move.
Minna Knight, from the Mines and Metals Association, says contract workers keep mining viable, and says a job security clause would hurt the industry.
"This isn't about job security. This is about the CFMEU dictating to employers in the resource sector who they can and can't employ," she says.
"And this is a roll back to the days of the 70s and the 80s where we had increased industrial disputation and immense difficulty actually operating our business.
http://www.abc.net.au/rural/news/content/200909/s2681995.htm
Paladin Raises A$419 Million for Uranium Acquisitions (Update1)
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By James Paton
Sept. 10 (Bloomberg) -- Paladin Energy Ltd., the uranium producer with mines in Africa and projects in Australia, raised A$419 million ($360 million) in a share sale to fund acquisitions and exploration.
The sale to institutional investors was at A$4.60 a share, 6.1 percent below Paladin’s closing price of A$4.90 on Sept. 8, the Perth-based company said in a statement today. The explorer and producer plans to complete the transaction on Sept. 16.
Paladin, which has surged 89 percent this year in Sydney trading, has said it may use the money to expand beyond Africa and Australia. Analysts said Paladin may be a potential counter bidder for Energy Metals Ltd., a uranium explorer that has received an A$83.6 million takeover offer from a unit of China Guangdong Nuclear Power Holding Co.
“You can understand the view Paladin would be looking at it because they have a common asset,” Peter Chapman, an analyst at Southern Cross Equities, said from Sydney. “It’s got to be a chance.”
Paladin is a partner in the Bigrlyi uranium project operated by Energy Metals in Australia’s Northern Territory.
The board of Energy Metals has backed the proposed offer from the unit of the state-controlled company in China, saying it would help in making the transition from an explorer to a developer and producer. China Uranium Development Co. offered A$1.02 in cash for 70 percent of Energy Metals shares, according to a Sept. 8 statement.
Paladin fell 4.5 percent to A$4.68 at 11:49 a.m. local time, compared with the 0.5 percent advance in the benchmark S&P/ASX 200 Index.
Paladin sees opportunities to grow “throughout the world” including Africa, Asia and North America, Managing Director John Borshoff said in an interview yesterday. The funds also may be used to expand its Langer Heinrich project in Namibia, the company said.
http://www.bloomberg.com/apps/news?pid=20601081&sid=a9Uee4sGI3Tk
Officials punished after China mine accidents
(AFP) – 6 hours ago
BEIJING — Chinese authorities have taken action against 13 officials and managers after two mining accidents this week in central Henan province left at least 57 people dead, state media said Thursday.
So far, 44 people have died and 35 are still trapped underground after a gas explosion at a coal mine on Tuesday in Pingdingshan city, the official Xinhua news agency reported. Rescue operations were ongoing, it said.
On Wednesday, 13 people, including miners and rescue personnel, were killed when a fire erupted at a gold mine in the city of Sanmenxia.
In Pingdingshan, three mine officials have been detained and two local officials sacked, Xinhua said. The city's 157 mines have been shut down pending a safety review.
Three of the 14 workers who managed to escape the mine were in intensive care at a local hospital, the agency said.
Following the gold mine fire in Sanmenxia, which started when a partial cave-in short-circuited some electrical wires, four local officials were suspended, three mine managers sacked and one official detained, Xinhua reported.
China's coal mines are among the most dangerous in the world, with safety standards often ignored in the quest for profits and the drive to meet surging demand for coal -- the source of about 70 percent of China's energy.
Official figures show that more than 3,200 workers died in collieries last year, but independent labour groups say the actual figure could be much higher, as many accidents are covered up in order to avoid costly mine shutdowns.
http://www.google.com/hostednews/afp/article/ALeqM5ii8j5Bi4TQuuLdtDYQ1hgenXzTIA
Other News
Green Industry - need of the hour, says India at Green Industry Conference
11:45 IST
Industry must recognize the importance of becoming green, as green innovation is the key to harmonizing development with sustainability. Delivering a statement on behalf of India as head of the Indian delegation on 9th September at the International Conference on Green Industry in Asia organized in Manila by the Government of Philippines in cooperation with the United Nations Industrial Development Organisation (UNIDO)’s Green Industry Initiative and in concert with the UN Environment Programme (UNEP)’s Green Economy Initiative, UN-ESCAP’s Green Growth Strategy and the International Labour Organisation (ILO)’s Green Jobs Initiative, Shri Ajay Shankar, Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, said that “we need to think about pragmatic and realistic approaches to the challenges of climate change and environmental sustainability, and the critical role of innovation and greening of industry. Equity, the right to development and the principle of common but differentiated responsibilities have to be the basis of our approach”.
We need to speed up the development and deployment of new green technologies across sectors so that the economies of scale bring the benefit of lower costs. Globalisation with growing openness to trade and investments facilitates this process, he said, while stressing that national policies and programmes give the appropriate country-specific sectoral focus to this collective endeavour. In this context, he mentioned India’s successful ongoing efforts to reduce energy consumption in energy-intensive industries, development of wind power and the decision to launch a Solar Mission.
The central message of the conference is: countries that follow a sustainable pattern of industrial development will be better placed to exploit the new market opportunities created by the shift towards resource-efficient and low-carbon production processes.
The three-day Conference (9-11 September 2009) is expected to endorse a Ministerial Declaration and a Plan of Action that would outline the steps needed to reduce the resource intensity and greenhouse gas emissions of industries in Asia and track the progress towards a low carbon industrial future.
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http://pib.nic.in/release/release.asp?relid=52513
D. Napoleon gives away National Trust Annual Awards-2009
15:40 IST
Shri D. Napoleon, Minister of State for Social Justice & Empowerment called upon people to realize the abilities and talents of the Persons with Disabilities (PWDs). He urged the agencies working for the welfare of disabled to create more awareness and make people understand that disabled can do many things, if given opportunities. “Each one of you has a duty”, this was stated by the minister while giving away the National Trust Annual Awards-2009, here today. The National Trust is a statutory body under the Ministry of social justice & empowerment set up for the welfare of Persons with Autism, Cerebral Palsy Mental Retardation and Multiple Disabilities.
Highlighting the various activities of the National trust like creating platform for ensuring skill development and capacity building of people with developmental disabilities, the minister stated that the slogan of the trust- “Discover Ability”, is very appropriate and is reflected in all the schemes of the trust. He expressed hope that with these efforts the National Trust will really make a difference in the lives of people with disabilities and ensure that they are treated as equal citizens.
Shri Napoleon mentioned that the National Trust Act tries to answer, some difficult questions, especially “What happens to my child when I am no more?”, “this requires us to develop many support systems” added the minister. He further said the work of the Local Level Committees (LLCs), is the most important one, among such support systems. Expressing happiness over the work of some of the best LLCs, the minister impressed upon the trust to try out several methods of training and awareness creation to ensure effective functioning of the LLCs.
The Awards were given in six categories: Best Individual, Best Innovative Design , Best Sheltered Workshop, Best Local Level Committee, Best Employer, Best Organisation. In the Best Individual Category, Persons with disabilities Award was given to Mr. Prathmesh Yashwant Date from Kolhapur, Maharashtra. In the sub category of Parent of Person with Disability the Award went to Nurul Islam, Shri Shiva Kumar Srivastava, Shri Hemant Bhai Goel. In the sub category of Best Professional Individual the Award was conferred on Ms Arundhati Kulkarni, Mr. P Narayanan and Ms Fulrani Kinalekar.
Disha, Sirsa, Haryana bagged the Best Sheltered Workshop Award. Best Local Level Committee Award in the North East Zone, South Zone, Central Zone, North Zone and West Zone were given to East Sikkim, Sikkim, Kavaratti, Lakshadweep, Balaghat, Madhya Pradesh, Mau, Uttar Pradesh and Latur, Maharashtra respectively. In the Best Employer category Sakthi Masala (P) Ltd. Erode, Tamilnadu received the award. In the Best Organization category Award for Best NGO was given to Deepshika, Ranchi and Sanjiwani, Tezpur, Assam.
http://pib.nic.in/release/release.asp?relid=52542
Mineral production during June 2009
12:23 IST
The mineral production from mining and quarrying sector in June 2009 was higher by 0.07% compared to that of the preceding month. However the mineral sector has shown a positive growth of 7.27% during the current financial year i.e. April-June 2009-10 as compared to that of the previous year. The mineral production in June 2009 was higher by 15.47% as compared to that of the corresponding month of previous year.
The total value of mineral production (excluding atomic & minor minerals) in the country during June 2009 was Rs. 8803 crore. The contribution of coal was the highest at Rs. 3158 crore (36%). Next in the order of importance were: iron ore Rs. 1980 crore, petroleum (crude) Rs. 1533 crore, natural gas (utilized) Rs. 1081 crore, lignite Rs. 254 crore and limestone Rs. 214 crore. These six minerals together contributed about 93% of the total value of mineral production in June 2009
. Production level of important minerals in June 2009 were: coal 397 lakh tonnes, lignite 31 lakh tonnes, natural gas (utilized) 3472 million cu. m., petroleum (crude) 28 lakh tonnes, bauxite 989 thousand tonnes, chromite 381 thousand tonnes, copper conc. 8 thousand tonnes, gold 164 kg., iron ore 190 lakh tonnes, lead conc. 12 thousand tonnes, manganese ore 182 thousand tonnes, zinc conc. 112 thousand tonnes, apatite & phosphorite 135 thousand tonnes, dolomite 381 thousand tonnes, limestone 182 lakh tonnes and magnesite 24 thousand tonnes.
In June 2009, the output of gold increased by 25.19%, chromite 24.75%, lead conc. 18.38%, zinc conc. 15.33%, copper conc. 10.73%, magnesite 10.28% natural gas (utilized) 4.99%, and dolomite 2.39%. However the production of limestone decreased by 0.94%, petroleum (crude) 1.08%, coal 2.38%, iron ore 3.93% lignite 5.47%, apatite & phosphorite 5.57%, manganese ore 6.6% and bauxite 14.91 percent.
http://pib.nic.in/release/release.asp?relid=52452
GOVERNMENT PROPOSES TO TAKE UP PRADHAN MANTRI ADARSH GRAM YOJANA
14:13 IST
The Prime Minister, Dr. Manmohan Singh stated that Government has proposed to take up a new scheme on a pilot basis, called “Pradhan Mantri Adarsh gram Yojana” (PMAGY) for integrated development 0f 1,000 villages, each having more than 50% SC population. The Prime Minister was speaking at the inaugural session of the Annual Conference of State Ministers of welfare/Social Justice, here today. He further said, “If the pilot scheme is successful we hope to be able to expand the scheme”. PMAGY aims at convergent implementation of various development schemes in these villages, with an additionality of Rs. 10 lakh per village to meet such of its requirements as cannot be met from the existing schemes.
Dr. Manmohan Singh called upon the States to give more attention to enforce vigorously the provision of the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act. He expressed concern over the conviction rate for cases of atrocities against SCs/STs which is less than 30% against the average of 42% for all cognizable offences under the IPC. He said that meetings of State and district Vigilance and Monitoring Committees should be held regularly and Court cases should be pursued in priority. The Prime Minister also urged the State Governments to step up monitoring and implementation of welfare Schemes like NREGA, “Annapurna”, Old Age Pension Scheme, etc. which target the weaker sections.
Speaking on the Occasion, in his welcome address, Shri Mukul wasnik, Union Minister of Social Justice & Empowerment emphasised on three pronged approach to enhance social justice and empower the disadvantaged. He said, “First, Government must enhance the effectiveness and efficiency of ongoing programmes for Social Justice and Empowerment through better management, greater use of IT and greater transparency, public participation and accountability”. He further mentioned that secondly, a new and expanded strategic partnership needs to be established between civil society, industry and government in the interests of Social Justice and Empowerment. Government must complement and supplement civil society, harnessing the vast network of non-governmental organizations. He said that the Private Sector must step forward and contribute measurably towards enhancement of Social Justice & Empowerment as part of corporate social responsibilities. “Third, the Government must complement the delivery of programmes with a rights-based approach to social justice. The government must ensure that disadvantaged sections are adequately empowered to demand and ensure the effective delivery of government assistance as well as fight against the social barriers that are the cause of their plight”, he added. The Minister also urged that implementation of existing rights must be strengthened and wherever needed, new rights must be created.
Shri Wasnik informed that the Ministry has initiated the process of amending the Persons with Disabilities Act, 1955 in order to harmonize it with the United Nations Convention on Rights of Persons with Disabilities. He mentioned that Ministry also proposes to simplify the certification procedure for Persons with Disabilities and Ministry will soon develop a fully accessible website, which will be launched shortly. He urged the State governments to make their websites fully accessible to Persons with Disabilities.
Expressing concern over the continuing incidence of offences of atrocities against Scheduled Caste, the Minister said that Suitable sensitization of Government personnel at various levels is of paramount importance and there is great need to strengthen the enforcement, prosecution and judicial machinery.
Following is the text of the Welcome Speech of the Minister for Social Justice & Empowerment:
It is my proud privilege to welcome the Hon'ble Prime Minister, the Dy. Chairman, Planning Commission, State Ministers of Welfare and Social Justice, representatives of Central Ministries and other participants to this Conference. I am especially grateful to the Hon'ble Prime Minister who has spared his valuable time to inaugurate the Conference and to set the tone for its deliberations. I am also very thankful to the Dy Chairman, Planning Commission for sparing time and agreeing to join us in the inaugural session. We are meeting at an important turning point in our country’s historic struggle for social justice and empowerment. In 62 years of Independence, none can deny the substantial and significant progress made by India in this struggle, while maintaining a democratic order and an open society and squarely meeting challenges from time to time. Since the 1990s, India has joined the ranks of the fastest growing economies in the world. India’s challenge today is: how to sustain high economic growth and ensure that the dividends of high growth are so distributed as to enhance social justice and empower the disadvantage group. The progress in the last five years has been especially noteworthy, with greater allocation of resources for the benefit of the underprivileged sections than has been possible at any previous time.
To ensure that the gains of high economic growth are fully harvested in the cause of building a just society, I believe that our approach has to be well defined so that it can consolidate and build on the considerable achievements of the past and duly take into account the rapidly changing scenario in which we live.
What is needed is a three pronged approach. First, Government must enhance the effectiveness and efficiency of ongoing programmes for social justice and empowerment through better management, greater use of IT and greater transparency, public participation and accountability. Where needed, new programmes will need to be introduced to fill gaps. Second, a new and expanded strategic partnership needs to be established between civil society, industry and government in the interests of social justice and empowerment. Government must complement and supplement civil society, harnessing the vast network of non-governmental organizations. In a rapidly expanding economy, the private sector must step forward and take its due responsibility to ensure that it contributes measurably towards enhancement of social justice and empowerment as part of corporate social responsibility. Third, the Government must complement the delivery of programmes with a rights-based approach to social justice, ensuring that disadvantaged sections are adequately empowered to demand and ensure the effective delivery of government assistance as well as fight against the social barriers that are the cause of their plight. To this end, the implementation of existing rights must be strengthened. In addition, wherever needed, new rights must be created.
There are many urgent steps needed for enhancing the effectiveness and efficiency of ongoing programmes. Revision of our Schemes of Post Matric Scholarship for Scheduled Castes and Pre and Post Matric Scholarship schemes for OBC students is in particular long overdue.
Continuing incidence of offences of atrocities against Scheduled Castes is a matter of grave concern for all of us. Suitable sensitization of Government personnel at various levels is of paramount importance. There is need to greatly strengthen the enforcement, prosecution and judicial machinery.
This year, we propose to take up the Pradhan Mantri Adrash Gram Yojana on pilot basis for integrated development of 1000 villages with more than 50% SC population. This programme aims at holistic development of these villages by convergence of all existing schemes. In addition, there is a provision of Rs 10 lakh per village to meet any gas ceiling requirement.
Persons with Disabilities Act, 1995 is being implemented over the last fourteen years. With the experience gained in its implementation and to harmonize it with the United Nations Convention on Rights of Persons with Disabilities, we have initiated the process to amend the Act. We also propose to simplify the certification procedure for persons with disabilities.
Latest technology can help persons with disabilities, especially those with visual disabilities, access to the information through internet. Our Ministry is in the process of developing a fully accessible website, which will be launched shortly. I would request State Governments also to make all their websites fully accessible to persons with disability.
This is an appropriate occasion for us to remind ourselves of the great and historic responsibility that is cast on all of us who are pledged to the cause of social justice. The very first goal for which our great Republic has been established is, as set out in the Preamble to our Constitution, to secure social justice. Article 38 enjoins the State to “promote the welfare of the people by securing and protecting as effectively as it may a social order in which justice, social, economic and political shall inform all the institutions of national life”. These Constitutional imperatives must and will continue to inspire us as we deliberate on the agenda before us.
We are confident that the Hon'ble Prime Minister will extend all possible support to carry forward the mandate of the Ministry in a much bigger and effective manner in order to fulfill the aspirations of the deprived and disadvantaged sections of society. We also hope that enhancement of the allocation of the Ministry, in the near future; will see a marked difference in improving the lives of the disadvantaged sections.
Before I conclude, I once again welcome all of you, and especially the Hon'ble Prime Minister and the Dy. Chairman, Planning Commission for sparing conference, and hope that it will provide an excellent platform for exchange of views and sharing of experiences, and would help in generating ideas so that, together, we can truly serve and empower our disadvantaged brothers and sisters.
http://pib.nic.in/release/release.asp?relid=52426
PM asks states to improve NREGs implementation
New Delhi, Sept 9 ,DHNS:
While inaugurating a day-long conference of state ministers of Rural Development and Panchayati Raj here, the prime minister said a delivery monitoring unit has been set up in the PMO to review flagship projects such as the NREGS.
Expressing concern over the tardy implementation of the National Rural Employment Guarantee Scheme (NREGS), Prime Minister Manmohan Singh on Wednesday asked the states to improve their performance.
While inaugurating a day-long conference of state ministers of Rural Development and Panchayati Raj here, the prime minister said a delivery monitoring unit has been set up in the PMO to review flagship projects such as the NREGS.
“We still have miles to go before we achieve the full potential of this unique legislation. The performance of the programme has been uneven across states. Some states have shown good results, some are lagging behind. I urge them to catch up,” he said.
“We cannot fail the poor of our country particularly at a time when resources are available to provide gainful livelihood security for at least 100 days to the rural poor.”
Referring to the increased allocation to the NREGS this year, he said: “Allocations for poverty alleviation programmes are rising every year. We have to ensure that our people get the best value for every rupee spent on their behalf”.
He said a sum of Rs 39,000 crore has been allocated for the NREGS and Rs 2,350 crore for the Swarnjayanti Gram Swarojgar Yojna (SGSY).
Similarly, under the Rajiv Gandhi National Rural Drinking Water Mission and the Pradhan Mantri Gram Sadak Yojna, provisions have been made for Rs 8,000 crore and Rs 18,500 crore respectively in the current year, he said. He added that effective oversight of these programmes was also extremely important.
The prime minister pointed out that monsoon had revived in many parts, auguring well for the kharif crop and bringing cheer to large number of farmers. But he also warned against complacency.
“We have to recognise that most areas of the country will probably still have a deficient rainfall and therefore we have to redouble our efforts to mitigate rural distress arising from the after effects of drought.”
Singh said employment was provided to nearly 45 million households in 2008-09
http://www.deccanherald.com/content/24174/pm-asks-states-improve-nregs.html
The essence of NREGS
The scheme needs to be protected from political opportunism
Business Standard / New Delhi September 10, 2009, 0:33 IST
The National Rural Employment Guarantee Scheme (NREGS) was launched by the previous United Progressive Alliance (UPA) government in the first flush of its commitment to the 'Aam Aadmi' agenda. Criticised by many for a variety of reasons, from fiscal burden to the prospect of leakages, it nevertheless became the UPA's defining and differentiating programme. Many people, inside and outside the alliance, gave it significant credit for playing a part in the UPA's re-election and, since it was closely associated with Sonia Gandhi, for strengthening the Congress's position. The Union Budget for 2009-10 provided a significant increment of Rs 39,000 crore based on the government's intent to expand the scale and coverage of the scheme. But, parallel to these good intentions, the political saleability of the programme seems to be tempting people to milk it for all that it is worth. Unchecked, this may end up destroying the fundamental merits of the scheme, with some unfortunate consequences for labour markets throughout the country.
T he temptation is manifest in efforts to expand eligibility from one adult per household to an unlimited number as well as to set the daily wage to a uniform Rs 100 per day. It is well-known that rural wages differ enormously across the country and the first version of the NREGS took this into account by setting state-specific daily rates. In many states, Rs 100 per day, particularly if more than one member of each household can get it, will prove to be significantly higher than the market wage, which means that many people will withdraw from the labour market to claim the scheme's benefits. This argument does not ratify the objection that many farm and industry lobbies have raised to the scheme: that it raises their wage costs unbearably. All of them ought to be paying at least the minimum wage to all their workers, which the earlier version of the NREGS would have ensured. However, if the scheme itself causes a significant distortion in the market, then the withdrawal of labour from the market could pose a threat to commercial viability of both agriculture and industry. Further, with bloated enrolment, costs and consequently, the fiscal burden will dramatically increase.
In its essence, the NREGS is a pragmatic and entirely justifiable safety net that guarantees subsistence without distorting labour markets by respecting regional differences in the minimum wage. Its effectiveness lies in the self-selecting nature of its beneficiaries; only those who are on the verge of destitution would have an incentive to enrol. It should not be converted into a general feeding trough, attractive enough for even relatively better-off families to take advantage of, which will both distort its targeting of the truly deserving and raise costs. The UPA may claim the political dividend for having launched the scheme, but in the interests of sustainability, it is perhaps time to think of a multi-stakeholder governance framework to manage it. The scheme simply cannot be compromised by political calculations.
http://www.business-standard.com/india/news/the-essencenregs/369640/
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