New mining policy favours outsiders, sidelines Kashmiris: KCCI

New mining policy favours outsiders, sidelines Kashmiris: KCCI

Srinagar: The Kashmir Chamber of Commerce and Industry (KCCI) has described the policy adopted by the Geology and Mining Department with regard to allotment of mining and extraction contracts as alarming and against public interest. The lack of protective mechanisms in the policy has reportedly deprived thousands of families of their livelihood and exposed consumers to exploitation by a mining syndicate, the KCCI said.
“The recent bidding for mineral blocks in Kashmir province clearly indicates that local stakeholders have been sidelined. Use of financial muscle power has totally wiped them out in Srinagar and reports from other districts are equally discouraging. The auction bid for 15 blocks in Pulwama has jumped from the previous Rs 2 Crores to a whopping Rs 17.82 Crores. There is no way that the local contractors can compete and are thus disadvantaged. While the Government may see the increase in revenue as a positive sign, the consequential increase in material costs suggests that it is the local consumers who have to pay the price. Instead of money flowing into the local economy there is all likelihood of a reverse outflow,” the KCCI said in a statement.
It said the introduction of heavy machinery in the extraction process would leave the local sand diggers jobless and the environmental costs are worrying. “A non-local syndicate appears to have altogether muscled out local stakeholders and is now indulging in aggressive and unfair trade practices. The cost of sand has been more than doubled,” it said.
The KCCI said that the first claim on local resources rightfully belongs to the natives of Kashmir. “Utmost caution needs to be exercised in formulation of economic policies which may otherwise appear to dilute their claims or prove detrimental to the interests of people connected with trade, commerce and industry,” it said.
“The Kashmir Chamber of Commerce and Industry urges for urgent review of the mining and extraction policy to address local interests and incorporate protective clauses for stakeholders and consumers. The district wise share of local stakeholders needs to be reserved to the extent of nothing less than 80 percent and market prices of materials need to be capped. It is further urged that the engagement of local labour for sand digging be made mandatory and use of heavy machinery restricted. Till the time a revised policy is announced in consultation with stakeholders, the Kashmir Chamber of Commerce and Industry appeals to Mr. G C Murmu, Hon’ble Lt Governor, Jammu and Kashmir to direct keeping the implementation of the new mining or extraction policy in abeyance,” the body said.

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