India's largest coal handling agency - Mjunction

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record-breaking initial public
offering (IPO). The issue was
even thought of creating a
hurdle in garnering valuations
from its IPO.
The industry believes the rise
in illegal mining goes hand in
hand with the growing demand
for coal and supply shortfall in
the country. This trend is likely
to sustain and thus increase
demand in the black market.
pits, abandoned mines and dumps of legally mined coal.
This coal is supplied to individual houses, shops and local
brickfields, among others. Sometimes, these people fall
pray to mining accidents. Reportedly, over 350 people have
lost their lives in the state in the context of illegal mining in
the last 15 years.
Commenting on this matter, Jaiswal said “Since this is a
social issue involving the livelihood of a number of persons,
the state governments concerned should seriously address
the issue for an alternative solution for engaging the affected
persons.”
Recent spurt in illegal mining
According to official data, 1,82,000 cases of illegal mining were
registered across 17 states in the past five years.
Coal India Ltd (CIL), which accounts for 82 percent of
domestic coal production, operates 471 mines in 21 coalfields
across eight states in India — Chhattisgarh, West Bengal,
Jharkhand, Maharashtra, Madhya Pradesh, Orissa, Assam and
Uttar Pradesh. Except Assam and Uttar Pradesh, for which
data is not available, the other six states reported 65,200 cases
of illegal mining in the past five years. Even in a relatively
trouble-free state like Maharashtra, the number of reported
illegal mining cases has gone up from 4919 in 2006 to 10,368
in 2010.
CIL has been a major victim of illegal mining. The issue
came up to haunt the world’s largest coal producer before its
Karnataka shows the way
The defensive stance taken by
the coal minister may not be
entirely unjustified though it
clearly signals escapism. It is the
states that earn Rs 4500 crore in
royalty charges from the coal
miners every year. Besides, there
have often been allegations over
a nexus between the coal mafia,
police and political honchos.
Recently, a media photo of a coal
mafia sharing the dais with the
chief minister of West Bengal,
Buddhadeb Bhattacharjee, has brought ignominy to the local
political leadership.
Amid such gross negligence of the issue, the pro-active
stance taken by the Karnataka judiciary and the government
to control illegal iron ore mining in the southern state may
just show the way. Under pressure from the High Court, the
government has raided iron ore stockyards at various places
in Bellary. It has also seized 3087 tons of illegal iron ore on
the Bellary-Anantapur road and 30,790 tons of ore in Hospet,
Bellary.
The Karnataka government, which had earlier been
reprieved by the court for its lackadaisical attitude, now wants
to recast the rules (framed in 2008 but not implemented till
date) to give mining authorities powers on the lines of police
to seize, raid, inspect and punish people suspected to be
involved in illegal mining.
Earlier, the Andhra Pradesh government had asked
the Centre to order a CBI probe into illegal mining in the
state. This included the activities of Obulapuram Mining
Company (OMC) promoted by Karnataka Tourism Minister
G. Janardhana Reddy.
The major coal mining states like Jharkhand and West
Bengal should follow in the footsteps of these southern
states and take immediate measures so that the problem
is contained before it reaches huge proportions like the
Maoist threats.
COAL INSIGHTS 30 October 2010