KCCI Sounds Alarm Over Mining Contracts


Srinagar:  Describing the policy adopted by the Geology and Mining Department over allotment of mining and extraction as alarming, the Kashmir Chamber of Commerce and Industry (KCC&I) on Saturday said the move has deprived thousands of families of their livelihood and exposed consumers to exploitation by a mining syndicate.

In a statement issued here today, a KCCI spokesperson said that recent bidding for mineral blocks in Kashmir province clearly indicates that local stakeholders have been sidelined.

“Use of financial muslepower 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 thus disadvantaged,” the spokesperson said.

He said while the Government may see the increase in revenue as a positive sign, the consequential increase in material costs for the consumers suggest that it is the locals consumers who have to pay the price.

“Instead of money flowing into the local economy there is all likelihood of a reverse outflow. The introduction of heavy machinery in the extraction process would leave the local sand diggers jobless and the environmental costs are also worrying,” the spokesperson said.

“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,” he added.

The spokesperson further said that with the constitutional changes introduced post August 2019, the government was expected to be fully alert with regard to protection of local economic interests from predacious groups.

“The first claim on local resources rightfully belongs to the natives of Kashmir and the Government of Jammu and Kashmir –  whatever constitutional structure it may acquire – is duty bound to protect the legitimate entitlement of people of Jammu and 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,” the KCCI spokesperson said.

The KCCI urged government 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,” the spokesperson said.

The trade body urged LG Murmu to order the implementation of the new mining or extraction policy in abeyance till the time a revised policy is announced in consultation with stakeholders.

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