Different governments at Center and State hindering Odisha's development - The case of Mining in Odisha

The federal form of administration with multi-party system - nevertheless being the very column of democratic institution - is taking its toll on the development of India. While the Congress is in power at the centre and regional party like BJD limited to Odisha is in power at the state, it’s creating a great deterrent to the development of the state economy that eventually contributing to the stagnation of Indian development.

This situation is of course not limited to Odisha only. The scenario is same with other states that are not being run by Congress. The central government has always given deaf ears to the needs of such states and what’s more, it has directly or indirectly caused hindrance to the development of such states for political vendetta.  This is especially true to those states where the chief minister is not very dynamic and daring enough to fight the central government for the development of the state.

This is what happens to Odisha as well at least since last 15 years. No doubt Chief Minister Naeen Patnaik, is doing exceedingly well in Odisha. But he could do much more if there is constant support from the central government.

Few years ago the central government stopped many mining activities in the state on the ground of environmental concerns. Union Cabinet on Thursday referred the MB Shah commission of inquiry report on illegal mining in Odisha to the committee of secretaries (CoS) to suggest further action which may include recovery of nearly Rs 60,000 crore from the miners and a CBI probe into roles of public servants in allocating mines to private companies. 

The commission has severely indicted both the Centre and the Odisha government on illegal mining of iron and manganese ores in its 5-volume report and it is bound to be a political hot potato for the BJD government as well as the Congress ahead of next year's Lok Sabha poll. 

Finance minister P Chidambaram said the Cabinet has asked the CoS to formulate an action taken report (ATR), which along with the Shah commission report, will be tabled in Parliament. 

He, however, refused to divulge the details of the report, saying, "It is the first report, and I think it is in 4 or 5 volumes. We are asking the CoS to draw up the ATR. The report of the Shah commission, appointed under the Commissions of Inquiry Act, must be placed before House together with an action taken report. The ATR will be drafted by a CoS and then the Cabinet will take a final view on that." 

Besides indicting both the Centre and the Odisha government, the commission also asked the state to recover over Rs 59,203 crore from the miners and use the amount for the development of two districts, Keonjhar and Sundergarh, "badly affected by illegal excess mining". 

It also recommended granting all future mining leases via auction route only and asked the government to revisit environment clearances given to all 55 mining leases which are located along the Baitarani River. Till the completion of the exercise, "the mines may be closed", it said.