Cement, Energy and Environment

the four states of Jharkhand West Bengal , Orissa and Chhattisgarh; they score low in per capital income and living standard. This indicates a dis ·t . ~an Y between the growing mlmng industry and the lower economic growth of host population. The benefits of growth have not accrued to the locals and pose serious socio econ · th omlc challenges. Even ough these states are not in an encouraging state of economy, there has been growing resistance to the ~eve.lopment of mining industry . nd rncrease in mining activities rn almost all parts of the country and these states in particular. A number of these concerns have been noted to be arising on account of the environme ntal concerns but in many of the cases , resistance is observed :rom the local community who rn t ' ' urn , is expected to get ben ft e 1 ed from the jobs and apport ·t· unr res which mining activities may create . Thus, it become · s rmportant to analyse the root cause and understand the reasons of these resistance by the local communities. In the initial stages of mining operations , the activities rnvolved are I d . ·t· I an acqursr ron and ' d preparation , mine evelopment t h' h in , e c. , w rc Valves a gestation period ran · a glng up to a few years (many . . trmes , 4-5 years) . It is this rnrtral Period in which the land acquisition is undertaken resultin · ' g rn the displacement and loss of livelihood to the land owners c · ompensation paid , as Per Prevailing government policy or as agreed may not fully compensate f~r the loss of sustainable livel ihood . Generating an alternative sust · alnable livelihood takes time and · rs expected to shape up only once the mining activities comes in full swing , resulting in developmental activities and ancillary industries. It, thus, results in enhanced employment opportunities for both skilled and non-skilled workforce. Need of regulatory changes The discussion above clearly signifies the growing discomfort among the locals losing their livelihood to the industry and industry looking for development and economic growth. Though once the mining activities take final shape and is expected to generate direct and indirect employment and livelihood for the locals displaced , the time elapsed is significant enough to discourage locals from participating in the growth opportunity. Industry .has been adopting various pract1ces to compensate the land losers and displaced people. In many cases it is onetime lump-sum compensation while in some of the cases companies have adopted innovative compensation structure ~y offering ownership (equrty participation) in the project. A onetime compensation package may bring immediate smile to the face of land losers but in the long run , the same also gives a sense of losing livelihood an.d exclusion from the growth. Thrs result in resistive moves ~nd agitation by locals agarn~t industry and may also result 1n law and order issues. Thus, it becomes imp?rtant for the government to strrke a balance and provide a sense of security to the locals to ensure growth of industry and ensure a sustainable framework . for . I . e growth for the proJect rnc usrv . . affected people. The objectrve can be achieved by regulatory provisions to make it compuls~ry for the industry to share Its benefits with the local people. The benefit sharing may ~o~e out in many ways like provrdlng employment in the mines, creating self employment opportunity, etc., but all these will need developing certain set of skills which all the locals may not have. Thus, either some of them will not be eligible or may not perform up to their expectation in case of forced employment. Thus, a mechanism providing them with their share of benefits and giving them freedom to choose their livelihood will make them empowered as well as a more sustainable dynamics can be created between industry and people. To address this, recently government has introduced provisions of sharing the profits or ownership in the mines in the draft Mines and Minerals (Development and Regulations) Act. Draft MMDR Act, 2010 provides for a number of provrsrons for the socio– economic development of local host populations in and around the mining area . Under the provisions of the draft Act, the State Governments are required to consult Gram Sabhas and District Councils prior to notification of areas for granting mineral concession in scheduled areas and District Panchayats, in case of non-scheduled areas. The draft Act also mandates State Governments to grant mineral concession to co– operative society of tribal on preferential basis in scheduled areas through a notification. These provisions are aimed at ensuring prior consent of the local tribes and ensure their participation in the development. For ensuring sustainable income generation to the land losers , the draft bill guarantees assured annuity to the local population, either through a 26 percent share of profits (post tax 3