Analysis of Minor Mineral Laws in India

Minor Mineral Concession Rules in Select States of India Analysis of Minor Mineral Laws in India A REPORT ON Minor Minerals Concession Rules of Sel...
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Minor Mineral Concession Rules in Select States of India

Analysis of Minor Mineral Laws in India

A REPORT ON

Minor Minerals Concession Rules of Select States with Case Studies on Workers and Communities Rajasthan, Andhra Pradesh and Maharastra

NOVEMBER, 2007

Environics Trust 33 – B, Third Floor, Saidullajab, M-B Road, New Delhi – 110030 Telefax: 91-11-29531814; email: [email protected]

Supported by

Oxfam - Community Aid Abroad, (Oxfam Australia) # 07, Sri Niwas Apartments, 1202/29 Apte Road, Opposite Hotel Coronet Pune - 411 004. INDIA

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Contents Preface 1.0

Introduction

1.1 1.2 1.3 1.4

Legal Basis for Minor Mineral Concession Rules The Rapid Expansion in Mining of Minor Minerals Opportunities and Constraints A Note on the Process

2.0

Minor Mineral Law in Select States of India

2.1 2.2 2.3

Rajasthan Andhra Pradesh Maharashtra

Annexure:

1

9

Comparative Chart

3.0

Case Studies

28

3.1 3.2 3.3

Jethwai Cooperative, Rajasthan (MLPC) Kuppam Green Mining Development Fund (Santulan)

4.0

Conclusions and Way Ahead

4.1 4.2 4.3 4.4

Legal Assessment Research Skills Exchange Advocacy

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Preface & Acknowledgements Mine Labour Protection Campaign (MLPC), a constituent member of the mines,minerals and PEOPLE (mm&P) organised a Consultative Meet in New Delhi on 20th March’07 to discuss the issues relating to the Small Scale and Artisanal Mining and Quarrying Activities. Quarrying and associated Occupational Health issues form an important thematic area for the alliance and the consultative meet enabled alliance members and other working on related mining issues across the country to discuss various facets of mining and share their experience. The consultative meet was a platform to exchange their views and work out a viable plan of action. Organisations from Maharastra, Rajasthan, Uttar Pradesh, Jharkhand, Karnataka, Uttarakhand, Delhi, Tamil Nadu and Andhra Pradesh participated in the consultation. Australian National University and mines, minerals and PEOPLE, Centre for Science and Environment supported the event. A large number of issues were addressed by one or the other group and have been able to achieve a significant breakthrough helping to bring change in the condition of mining and mine workers communities. As an advocacy measure members have effectively used the provisions of Minor Mineral Concession Rules (MMCR), but the complete import of the MMCR and the potential it holds for all the people involved in Small Scale and Artisanal Mines and Quarries has not been captured. A need was felt to understand how do others address these issues in other areas or States and spread the benefits gained in one region? There are a number of policy issues related to the quarry licensing to operational processes, which need to be addressed. Issues of Health, Insurance and Compensation Payments need to be highlighted and mechanisms for redressal have to be strengthened. Social Security mechanisms and the role of ESI have to addressed. Oxfam-Community Aid Abroad noticed the interest and application of the members and offered support to undertake this task. The MMCR varies from State to State, in some states it has certain provisions benefiting mineworkers whereas in some state the same provision is absent. For example, in Maharashtra, Mining Development Fund, which evolved in 2002 was a revolutionary provision by the state where 10% of the mining revenue would be invested in the construction of road, improve health, environment, provision of electricity and water. Santulan has been able to force important changes in the use of these resources to the benefit of people. In Rajasthan through constant intervention and dialogue with the state MLPC has been able to secure only 1% of the mineral revenue to the Panchayat whereas the mineral policy in Andhra Pradesh reflects that the percentage of revenue earned from mining is distributed entirely amongst the Panchayat, Panchayat Samiti and Zila Parishad. In most states the pollution clearance certification and measures does not involve the consent of Panchayats. At a glance it has been observed that in those states where intensive mining activity is done of minor minerals there has been amendments made in the MMCR but there is lack of uniformity which can benefits the mineworkers or regulate the mineral extraction in the interest of the local communities.

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Minor Mineral Concession Rules in Select States of India

This effort is to analyse the rules, specifically in three states and identify opportunities for further activities of the alliance. The report also provides a overview of the potential growth in the exploitation of minor minerals and the implications to the workers and the communities. We sincerely hope that this process will lead to systematic appraisal and identification of tasks, which the alliance could undertake, with the support of OCAA and develop the thematic area of `Quarry Workers and Occupational Health’ and create a nationwide basis for support and action. We are extremely grateful to Oxfam Community Aid Abroad for the support. We thank all colleagues from mm&P alliance who provided inputs for the process. A special thanks is due to Ms Madhura Kulkarni and Dr Milind Bokil for their continued encouragement. For Rana Sengupta, Pravin Mote, B.T Venkatesh, Bastu Rege, R.Sreedhar and Team

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

1.0

INTRODUCTION

1.1

The Legal Basis for Minor Mineral Concession Rules

Mines And Minerals (Development And Regulation) Act, 1957 (No. 67 Of 1957) defines minor minerals in its Clause 3 (e) as follows: 3. In this Act, unless the context otherwise requires: e. "minor minerals" means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral; It lays down general restrictions as under in Sec 4 wherein the minor minerals are also included. General Restrictions On Undertaking Reconnaissance, Prospecting And Mining Operations Reconnaissance or Prospecting or mining operations to be under licence or lease 4 (1) [No person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of reconnaissance permit or of a prospecting licence or, as the case may be, a mining lease, granted under this Act and the rules made thereunder]: Provided that nothing in this sub-section shall affect any prospecting or mining operations undertaken in any area in accordance with the term and conditions of a prospecting licence or mining lease granted before the commencement of this Act, which is in force at such commencement. Provided further that nothing in this sub-section shall apply to any prospecting operations undertaken by the Geological Survey of India, the Indian Bureau of Mines, [the Atomic Minerals Directorate for Exploration and Research] of the Department of Atomic Energy of the Central Government, the Directorates of Mining and Geology of any State Government (by whatever name called), and the Mineral Exploration Corporation Limited, a Government Company within the meaning of Section 617 of the Companies Act, 1956. Provided also that nothing in this sub-section shall apply to any mining lease (whether called mining lease, mining concession or by any other name) in force immediately before the commencement of this Act in the Union Territory of Goa, Daman and Diu. [(1A) No person shall transport or store or cause to be transported or stored any mineral otherwise than in accordance with the provisions of this Act and the rules made thereunder.] (2) [No reconnaissance permit, prospecting licence or mining lease] shall be granted otherwise then in accordance with the provisions of this Act and the Rules made thereunder.

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Minor Mineral Concession Rules in Select States of India

(3) Any State Government may, after prior consultation with the Central Government and in accordance with the Rules under Section 18, [undertake reconnaissance, prospecting or mining operations with respect to any mineral specified in the First Schedule in any area within that State which is not already held under any reconnaissance permit, prospecting licence or mining lease.] [Sections 5 to 13] not to apply to minor minerals 14. The provisions of sections 5 to 13 (inclusive) shall not apply to quarry leases, mining leases or other mineral concessions in respect of minor minerals. Further, the act grants specific powers to the State Government to make rules covering a whole gamut of aspects related to minor minerals in the article 15. Power Of State Governments To Make Rules In Respect Of Minor Minerals 15 (1)The State Government may, by notification in the Official Gazette, make rules for regulating the grant of quarry leases, mining leases or other mineral concessions in respect of minor minerals and for purposes connected therewith. (1A) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:a. the person by whom and the manner in which, applications for quarry leases, mining leases or other mineral concessions may be made and the fees to be paid therefor; b. the time within which, and the form in which, acknowledgement of the receipt of any such applications may be sent; c. the matters which may be considered where applications in respect of the same land are received within the same day; d. the terms on which, and the conditions subject to which and the authority by which quarry leases, mining leases or other mineral concessions may be granted or renewed; e. the procedure for obtaining quarry leases, mining leases or other mineral concessions; f. the facilities to be afforded by holders of quarry leases, mining leases or other mineral concessions to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations; g. the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time within which and the manner in which these shall be payable; h. the manner in which the rights or third parties may be protected (whether by way of payment or compensation or otherwise) in case where any such party is prejudicially affected by reason of any prospecting or mining operations; i. the manner in which the rehabilitation of flora and other vegetation, such as trees, shrubs and the like destroyed by reasons of any quarrying or mining operations shall be made in the same area or in any other area selected by the State Government (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the quarrying or mining lease; j. the manner in which and the conditions subject to which, a quarry lease, mining lease or other mineral concessions may be transferred;

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Minor Mineral Concession Rules in Select States of India

k. the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial ropeways, pipelines and the making of passage for water for mining purposes or any land comprised in a quarry or mining lease or other mineral concessions; l. the form of registers to be Enactment of Minor Mineral Concession maintained under this Act; Rules m. the reports and statements to be Andhra Pradesh 1966 submitted by holders of quarry or Assam 1994 mining leases or other mineral Bihar* 2001 concessions and the authority to Delhi 1969 which such reports and statements Goa, Daman & Diu* 1985 shall be submitted; Gujarat 1966 n. the period within which and the Harayana* 1964 manner in which and the authority to Himachal Pradesh* 1971 which applications for revision of any Jammu and Kashmir 1962 Karnataka* 1994 order passed by any authority under Kerala 1967 these rules may be made, the fees to Madhya Pradesh* 1996 be paid therefore, and the powers of Maharashtra 2003 the revisional authority; and Mizoram 2000 o. any other matter which is to be, or Orissa* 1998 may be prescribed. Pondicherry 1977 (2) Until rules are made under subPunjab & Chandigarh 2002 section (1), any rules made by a State Rajasthan 1986 Government regulating the grant of Tamil Nadu* 1959 quarry leases, mining leases or other Uttarakhand 2001 mineral concessions in respect of minor Uttar Pradesh* 1963 minerals which are in force immediately West Bengal* 2002 before the commencement of this Act * The States who have amended their shall continue in force. MMCR after its formation (3) The holder of a mining lease or any other mineral concession granted under Andamam and Nicobar islands, Arunachal Pradesh, Chhattisgarh, Dadra and Nagar any rule made under subsection (1) shall Haveli, Jharkand, Lakshadweep, pay royalty or dead rent, whichever is Manipur, Meghalaya, Nagaland, Sikkim more in respect of minor minerals and Tripura have not yet framed their removed or consumed by him or by his own MMCR agent, manager, employee, contractor or sub-lessee at the rate prescribed for the time being in the rules framed by the State Government in respect of minor minerals. Provided that the State Government shall not enhance the rate of royalty or dead rent in respect of any minor mineral for more than once during any period of three years. It is within the framework of these laws the varied MMCR have been developed at different points in time and Minor Mineral Concession Rule deriving rights from the Mines and Minerals (Development and Regulation) Act 1957 (MMDR). 1.2 The Rapid Expansion of Mining of Minor Minerals There has been a rapid and relentless expansion of the mining of minor minerals in the last decade. The primary impetus to this growth is the massive expansion of

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Minor Mineral Concession Rules in Select States of India

infrastructure - roads, ports, railways - fuelled by a high growth economy and high liquidity in the markets in turn triggering housing and other amenities expansion. The construction sector’s GDP has been rising at more than six percent per year since 1998-99. Cement production, a close indicator of construction activity has also been rising at roughly the same rate during this period. An important implication of this boom arises from the traditional view that construction activity is employmentintensive and hence the growth of construction sector results in more jobs, particularly for the relatively unskilled workers. Construction is of several types: housing, infrastructure such as roads, bridges, flyovers, airports, commercial establishments and so on. Taking the GDP route, it is clear that the household sector, comprising of unorganised commercial sector and the housing sector account for bulk of construction activity. The share of household sector in construction GDP was 57 percent in 2004-05, the private corporate sector accounted for another 10 percent and the public sector’s share was 33 percent. Construction activity has gained strength since the mid-1990s. After a steady decline and stagnation in the 1960s and 1970s, the revival in the 1980s, however, decelerated in the early 1990s. The real engine of growth for this sector has been the housing demand. The current surge in housing demand is due to both supply and demand factors. On the demand side, there is far greater access to housing loans, there is an expansion in economic activity in urban areas requiring people to move closer to where jobs are and hence additional demand for housing and there is rise in expected income levels. A qualitative change in the supply side of housing and construction activity has been the rise of private sector in construction as well as financing. Importantly, the market for houses or commercial premises has become functional. Individuals have begun to invest in housing with less fear of locked up savings. They are looking at spending on housing as investment and not merely a place where they would live forever. The role of private remittances from abroad in catalysing housing demand cannot be overlooked. A survey by National Sample Survey Organisation indicated that there were only four households per thousand who initiated construction at a site elsewhere from their current place of residence in a five year period upto 2002- 03. A rough estimate of new housing demand per year was based on the norm, which works out to 1.6 lakh houses per year1. The implications of this absentee ownership is a which is exclusively developed generates a speculative market for such assets and consequent volatility in the demand for building materials as a majority of the minor minerals are used for construction purposes. The states seem to take the name itself literally as ‘minor’ Minerals and this is reflected in not maintaining strict accounts to ensure compliance. Due to this it has severe problems of royalty sharing, sharing of royalty with village community, labour problems, issue of minimum wages and also environmental problems have not been adequately addressed. But most of the states have came up with mining policies in their respective states. In India Major minerals are most valuable and when we look at the figures for Rajasthan, the relative revenue earnings per tonne of Major and Minor minerals 1 Macrotrack Monthly Report December 2006 Vol.Viii No.12 National Council Of Applied Economic Research New Delhi

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indicates an appalingly low revenue generation despite high sales realization by the industry. Value in INR Sale Value per tonne Revenue per tonne

Major 4640.85 91.14

Minor 3128.00 0.66

Most of the value, production, revenue and sale of Mnor Minerals are unaccounted. To elaborate further on this, in an overwhelming majority of the mines, the mining methodology is characterised by intensive and erratic operations, is without a scientific basis, and the technology used is quite primitive. Costs are kept low mainly due to such practices in tandem with a tradition of paying the labour class much less than is rightful, making them work for longer hours, the extraction of resources far exceeding lease limits, clandestine mining and the running of fly-by-night operations, frequent non- payment of cess/royalty etc. Though mining in the state has vast potential, 95% of the activity in this industry today is controlled by relatively small units in the unorganised sector, which is primarily responsible for the hazardous nature of the mining activity. Lack of scale economies and the absence of vertical integration as well as backward and forward linkages have belied both the creation of proper infrastructure as well as the adoption of appropriate technologies and safety methodologies. As a result, private contractors and mine owners have tended to adopt shoddy and unscientific methods to operate their mines and keep them running, and the inadequacies of the state monitoring machinery has contributed to unethical practices and the rampant destruction of the state's habitat, as well as its mineral wealth. For example, as per several independent estimates, the unorganized mining sector in Rajasthan is said to employ more than 25 lakh workers, but mine owners and contractors are loathe to admit this and would like to obfuscate this fact, tending to conceal this statistic from all and sundry, including the government. This is manifest in the perusal of government records, which reflect a figure of a mere 6 lakh workforce occupied with mining in the state. Concealment of the actual scale of employment in this industry is a deliberate attempt by mine owners and contractors, to bypass labour laws and evade other restrictions. This pervasive cover-up operation is so palpable that it is a practice in the sector not to write real names of workers in the muster records. The blatant use of a ‘hire and fire’ policy is also very prevalent, which ensures that no worker can stake claim to permanent appointment, which brings several entitlements along with it as per labour laws of the country. Ignorance about wage records, employment procedures, ESI, PF, leave and group insurance entitlements and their rights under the Workmen’s Compensation Act, etc., has made the position of millions of mine workers in the state totally untenable. As a result, they have been rendered vulnerable to ruthless exploitation at the hands of mine owners, which has further been reinforced by the government’s lukewarm response to their plight. Indigenous people, especially the adivasis and the dalits, have traditionally conserved nature, acting as protectors of nature in their self-assumed social role as ecosystem

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Minor Mineral Concession Rules in Select States of India

trustees. This they have done through the ages, despite shortages and scarcities, which bespeak their tolerance, love for nature, resilience and adherence to traditional wisdom. These value-systems and qualities of the rural poor in the state are today getting progressively eroded, due to protracted periods of recurrent drought, and the failure of agriculture to provide a decent and sustainable livelihood. This gradually worsening situation in the rural hinterlands has perforce coerced indigenous people like the adivasis and the dalits to opt for either trans-migration or work in the mines in order to ensure their very survival. India is a large country with a population of 100 crore. Other domestic consumption of natural stones is large which is estimated to be around 1,453,000 tonnes in 1999-2000 and is expected to grow by 30 per cent per annum. Anticipated domestic consumption by 2010 will be a whopping 26.40 Million tonnes. It is estimated that present investment in decorative stone industry is approximately Rs.5000 crore. It is expected that with necessary policy support the total sales turnover can reach a level of Rs. 23,443 crore by 2011, from the present level of Rs. 3080 crore. Going by the 20-25% growth in the industry in the Tenth Plan period and beyond as estimated by the Sub-group, in order to meet the projections in the coming 10 years, it is anticipated that further investment will have to be of the order of Rs.50,000 crore which my also include foreign investment. This will also mean an exponentially higher level of mining. Export-Import Policy also provides an impetus to the export of building stones through its incentive of allowing imports of certain capital goods, against exports of stones such as granite and marble and their products. The table below details the items of export and corresponding capital goods which can be imported2.

The policy is expected to give further boost to the Indian Stone Industry as a whole. Under its new import policy for the year 2001-2002, Government of India has identified 300 consumer items as sensitive from the producer's view point. These goods will be allowed only through 11 entry points, selected from the 215 points notified by customs for the unloading of imported goods. Among these 300 consumer goods stones such as marble, granite, travertine and alabaster will mostly be unloaded at Nava Sheva in the West and at inland container depot at Tughlakabad in New Delhi.

2 Source : Annexure To Policy Circular No. 39 (RE-2000)/1997-2002 Dt. 14.02.2001 (Partial)

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Minor Mineral Concession Rules in Select States of India

Restrictions to unload dimension stones at notified ports only, will help to monitor custom clearance more effectively. But at the same time transportation of stones to different processing and consuming centre will add to the cost since imported goods will now be allowed through 11 entry points, likely congestion at the port may delay unloading and disposal process. A proper planning and execution on the part of the respective authorities can definitely solve such problems. A survey conducted by the National Sample Survey Organization (NSSO)3, shows that the total employment in both the organized and the unorganised sectors in the country is 397 million, of which only 28 million are in the organized sector and 369 million (about 93%) are in the unorganised sector. Of this, 237 million workers are in the agricultural sector and 17 million are engaged in construction sector. Remaining workers are engaged in mining, manufacturing and services sector. On account of their unorganised nature, these workers do not get adequate social security and welfare. If the current trends continue, the manifold increase in the mining of minor minerals will be inevitable and will concurrently demand a greater vigil in the formulation and implementation of minor mineral laws in the country since this will impact vast areas and a large population and protecting their rights, ensuring safety in the work environment and creating less drudgery prone opportunities for the future will be a great challenge for the communities themselves and institutions concerned about their well being. 1.3

Opportunities and Constraints

A huge number of people employed and therefore the dependence of nearly 100 million people is closely associated with what could be associated with mining of minor minerals in the country. Therefore any focus on their issues has widespread ramifications for the most vulnerable communities. It is therefore important that the opportunity of evolving a collaborative process of understanding and action could lead to quicker exchange among different communities across the country. The availability of skills with different groups can be pooled to effectively address the varying situations. The utter lack of political will in improving revenues and working conditions of the minor mineral mines and quarries makes the efforts of communities and other institutions daunting. Even where there exist relevant rules, several efforts are required for the State to act. The communities’ involved are diverse and this demands sensitivity in evolving alternatives both within and outside the sector. 1.4

A Note on the Process

This process note is to highlight the collaborative mechanism evolved to undertake the study and analysis of the acts and the process adopted. Emerging from the national consultation and further discussions with OCAA, a proposal was drawn up by Environics 3 SS-142/SF-142/4.6.2007, Press Information Bureau ,Government of India Monday, June 04, 2007

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Trust, the anchor agency for the New Delhi centre of mm&P. Environics Trust has provided inputs on research design and coordination of outputs. MLPC Trust took the lead in actively pursuing the research and developing the draft reports. A team comprising Rana Sengupta, Pravin Mote, Advocate B.T Venkatesh and R.Sreedhar discussed the various aspects in the light of their experiences as well as those of the members of mm&P. A meeting was held in Delhi to start up the activity. Santulan, Pune, Maharashtra and Pathar Khadan Mazdoor Sangh, Panna, Madhya Pradesh are actively involved in the programme. The team analysed the condition of mining in the respective areas and formulated a format to assess the policies framed for minor minerals and the manner in which it is being implemented. While three states namely Maharastra, Rajasthan and Andhra Pradesh are intensely studied members were encouraged to provide inputs from their respective states. A comparative table has been generated looking into the important issues. Case studies highlighting the conditions and successful use of specific provisions have been incorporated. Inputs from professionals involved in the government and having experience in dealing with the implementation of the rules have been incorporated.

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Minor Mineral Concession Rules in Select States of India

2.0 2.1

MINING AND MINOR MINERALS LAWS IN SELECT STATES Rajasthan

Rajasthan has a total area of 3,42,239 square kilometres of land within its domain. Out of this, three fifths of the land in the state is sandy desert. Forests and woodland comprise a total of 60,506 square kilometres, while 15,429 lakh hectares is said to be under agriculture. Forest and land under pasture is gradually shrinking in the state, due to population pressure and unsustainable practices like mining activities. The state is endowed with a wide range of mineral resources that offers considerable potential for future, if exploited properly. In its 'museum of minerals', as many as 64 metallic and non-metallic minerals are showcased. A wide spectrum of non-metallic compounds like gypsum bentonite, marble, fuller's earth, siliceous earth, white clay, silica-rich sands, limestone, yellow ochre, selenite, jasper, lignite, asbestos, granite, sandstone, etc., account for a major share of state's mineral resources, and are distributed throughout its several regions. The state also has rich deposits of metallic ores like tungsten, zinc and copper in some regions. In addition, the state has some pockets where lignite coal is available in plenty. Apart from these endowments, the state has enormous occurrence of stone used for building, like marble, granite, sandstone, and limestone. Rajasthan is also a leading producer of soapstone, gypsum, rock phosphate, calcite, wollastonite, emerald, jasper and gem garnet. Most mineral deposits in the state are concentrated all along the Aravali range that runs through large parts of the state and mining activity is widespread here. At present, official records mention that there are 33,199 mines of varying sizes that occupy approximately 0.4 million Mining in Rajasthan hectares of land in the state. The state government earns direct 79 varieties of Minerals Present revenue of INR 2710 millions, and an 58 kinds are mined presently even larger sum as indirect revenue from these mines every year. • Sole producer of garnet (gem variety), Jasper and Wollastonite. Rajasthan, India's largest state, is • Almost entire production of zinc home to many of the country's very (concentrate), calcite, asbestos and rich as well as a large section of the gypsum in the country from Rajasthan. abject poor. Exploitation of natural • Leading producer of ball clay (40%), resources like minerals is also a feldspar (70%), fluorite (graded) (59%), reasonably large-scale activity. Kaolin (44%), lead concentrate (80%), Livelihoods range from industrial ochre (72%), phosphorite (79%), silver activity, trade and commerce to (54%), steatite (85%), barytes (53%), agrarian activity, which would copper (34%), quartzite (33%) and silica include agriculture, horticulture and sand (21%). animal husbandry. While a lot has • been researched and written about Year Revenue (Billion INR)

2003-04 5.14

2004-05 6.45

2005-06 8.14

conventional livelihoods in Rajasthan and their impact on the populace; the activity of mining minerals and ores, and the impact this is having on the fragile ecosystems of the desert

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state, its social frameworks, and the tenuous economic balance in the state's mining belts is less prolific. Nature has endowed Rajasthan with several rich mineral deposits. The workforce that is employed in extracting and processing these natural resources in the state’s mining industry (both organised and unorganised) is second only to agriculture, which accounts for the largest chunk in the state. A series of livelihood crises precipitated and perpetrated by abject failure of agriculture on the one hand, and degradation of pastoral land due to a variety of reasons on the other, compounded further by recurring and perennial drought over the past several years, has left the rural populace with no option but to work the mines that litter the landscape. Over 3.1 million workers, predominantly adivasis and dalits, toil 12 to 13 hours a day on an average, in working conditions that are described as hazardous at best. Given the largely unsustainable, unscientific, and unorganised nature of these activities, these mine workers are also prone to a number of occupational hazards including the onset of life-threatening diseases and crippling physical injuries resulting from the lack of adequate health-care measures and mine safety arrangements. Plight of the Workers and Communties Denied access to basic medicare facilities and other statutory benefits that organised labour normally takes for granted, mine workers here must invest their sweat and blood for virtually zero returns, in fiercely hot summers as well as freezing winters. As a consequence, the rich get richer and the poor get poorer, with the coffers of the mine owners get filled, and the mine working communities getting not only progressively impoverished, but also suffering from reduced life spans. Violations of labour laws and statutory safety measures abound and are rampant in the mining areas in the state. Mines often operate on outright illegal basis or on longexpired leases; dumping of mine debris is often haphazard, leading to destruction of fragile ecosystems where the waste products of one process do not constitute the raw material for the next. Business practices are often questionable, with mine workers getting paid much less than the minimum assured wage while work conditions are hazardous. To a large extent, this state of affairs is also aided by lax enforcement of laid down laws and norms for mining by the state's mining department, which lacks both the political will as well as the required wherewithal to monitor the working of a couple of thousand leases. All this has been adding to the oppressive working conditions and shadow existence of a large number of people who are eking out their livelihood through resort to seasonal mining activity in the state. So much so that it may be said that the mining industry in the state is today deriving and garnering its profitability purely through unsustainable exploitation of scarce natural resources and the over-exploitation of its productive human resource. Painful indeed has been this journey of the indigenous population, whom the trajectory of development has forced to evolve from being the dignified trustees of nature to lead an undignified life as unorganised labour in the mines that have sprung up in their milieu, often at odds with whatever they believed as inviolate in their natural surroundings. Bhils, Gameti, Kharadi, Koted, Damor, Pargi, Meghwal, Gujjar,

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Khatik, Regar, Kohli, Kahar, Balai, Bajara, Meena and other castes/tribes living in the Aravalis constitute the majority of the work force in the mines today, where unregulated mining is not only destroying nature's fine equilibrium, but is also threatening the life, culture and social milieu of the adivasis. Occupationally, the mines and stone quarries of Rajasthan embody some of the most primitive of practices, and are highly exploitative in the nature of their operations. This state of affairs has earned them the infamous sobriquet of being “Killing Fields”, where the harvest being reaped by its human workforce is often a harvest of disfigurement, disease, and premature death. Accidents are a frequent occurrence at the mines here, as most of the work is done manually, with primitive and rudimentary tools like heavy hammers and chisels. Often heavy slabs of stone fall on workers, resulting in serious and crippling injuries. The unorganised mine workers do not get any medical compensation for injuries sustained at work. To the contrary, workers are often deprived of wages if they are unable to report for work due to sickness or injury. Besides being prone to grievous injuries due to lack of proper safety measures, working under hazardous and insecure circumstances in the numerous mine fields of Rajasthan is also the cause behind the shortening of life-spans for millions of workers in this sector. The number of fatal accidents, which have evidenced a sharp increase, is alarming at best. The State’s Mineral Policy, implemented in the year 1994, with its exclusive emphasis on exploitation of the state's vast mineral wealth, sans any clauses that enforce safe and sustainable mining, or ensure the well-being and equitable employment of the workforce, has further reinforced the exploitative framework of the sector. Each year, an average of 200 workers has been dying due to mine accidents and 300odd people are getting grievously injured, with several workers getting permanently disabled. And till date, the compensatory regime has been dismal, with not even 1% of those killed, disabled or injured getting any adequate compensation. Life is cheap, going by the offers of paltry sums by mine owners that silence the voices of poor and destitute dependents of those killed or injured at work in the mines. In all cases that have been studied, it was obvious that the mine owners themselves were to be blamed for making the workers toil in the most primitive conditions of work. Harsh words no doubt, but this scenario warrants the assertion that in these mines, maximisation of profit is the only credo; lives and limbs of the workers are of no value. Therefore, the labour which works these mines, without regard for safety or dignity of labour, are often pushed into the maw of death. Mines here also resort to the illegal practicee of employing children for working in some hazardous operations. The local administrative setup, the law & order machinery, and the police have been apathetic to this practice, which has emboldened mine owners and contractors to continue with this practice, without far of stringent action against such gross violations by the government. While deployment of child labour in the mines is common knowledge, collusion between the government machinery and the mine-owners/contractors have meant that not a single mine-owner or contractor has so far been arrested.

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Minor Mineral Concession Rules in Select States of India

The deaths and injuries caused by accidents go the same way, with a colluding police and the mines & labour department of the state maintaining silence, brushing the truth behind the accidents beneath the proverbial carpet. This is a measure of the all-encompassing greed that pervades the sector on the one hand, and the government's apathy and unconcern towards valuable lives on the other. With most of the casualties resulting out of mine accidents in the state failing to find even a centimetre's mention in the newspapers, whatever little is reported is taken to be the sum total of such accidents. But given the nature of mining operations in the state, where an overwhelmingly large percentage of mining leases are held by individual mine- owners and contractors, and the industry is predominantly in the unorganised sector, where rules, norms and standards are often flouted rather than honoured, this is in total contradiction to the true state of affairs. Barring a few exceptions, most of these mines do not even possess a ‘first aid box’; most mines are patently unsafe, with imminent danger of accidents looming large at every mine. But nobody is bothered about these catastrophes in the offing, as human life is held to be cheap in the light of obscene profits. High rates of injury and the exploitative nature of their employment [daily wages are a meagre INR 60/- for 12 hours of toil] apropos also make the workers dependent on mine owners, who loan them money for meeting their daily needs that they can scarce afford on their earnings alone. This leads them into a debt trap, transforming them into a kind of bonded-labour. Debts typically range from INR 10,000/- to INR 150,000/- for each family of workers. This indebtedness has the insidious tendency to rob them of their basic freedom -- they are bound to the debtor and not allowed to move or work elsewhere until their debt is settled, which is more often than not perpetual. List of Minor Minerals: SCHEDULE III ( List of Associated Minerals) [See rule 11 (2)] The Following minerals shall be treated as associated minerals within their respective groups: (e) Serpentine; (f) Diorite and Dolorite; (g) Any other rock used for slab or tile making.

1. Dimensional Stones (a) (b) (c) (d)

Sandstone; Limestone; Phyllite and schist; Slate stone used dimensional stones.

as

2. Mineral used as blocks and sawn as slabs and tiles. (a) (b) (c) (d)

Marble; Dolomite; Rhyolite; Granite;

3. Minerals burning.

used

for

lime

(a) Limestone; (b) Dolomite, Limestone; (c) Marble fragments suitable for burning. 4. Minerals used for chips and powder burning.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

(a) (b) (c) (d) (e)

(f) Dolomite and other rocks used for similar purpose.

Limestone; Marble; Rhyolite; Chert; Serpentine;

5. Minerals used as masonry stone, road metals, ballast etc.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

3.2

Andhra Pradesh

Introduction: Mineral Resources & Mining Minerals & Agriculture have been the main stay of A.P. and minerals form a major contributor to its economic growth. A.P. is renowned as the mineral storehouse of the south and established as a prime mineral producer in the Country. Andhra Pradesh’s varied geology has rich & wide variety of minerals for many mineral specific industries. It is a house for 48 minerals and more specifically for Gold, Diamond, Bauxite, Beach Sand, Limestone, Coal, Oil & Natural Gas, Manganese, Dolomite, Quartz, Feldspar, Precious & Semi-precious stones, Clays, Calcite, Steatite, Iron Ore, Base Metals, Barytes, Uranium, Granite, Limestone Slabs, Marbles, Dimensional Stones and other Building Materials. Estimated Mineral Reserves (In Million Tonnes) Coal Limestone Bauxite Barytes Diamond (carats) Granite (Million Cu. Mtrs.) Gold (ore) Beach sands

16,694 35,220 613 76 18,22,955 2,406 8.55 241

Rights for Exploitation of Minerals: Minerals are natural resources and the right to exploit and grant of lease is being done under the provisions of MM (DR) Act 1957, Mineral Concession Rules 1960 and APMMC Rules 1966. An entrepreneur can apply for Mineral Concession/lease for major or minor minerals in the prescribed application form along with the application fee, sketch, Mineral Revenue Clearance Certificate and other relevant documents in the concerned District level Officers for processing and grant of lease by the Government. Leases & Applications: A.P. with vast major & minor mineral resources has granted 1,644 Mining Leases for major minerals and around 6,239 quarry leases for minor minerals under both private & public sectors. Exploitation of Coal, Barytes, Oil & Natural Gas are exclusively mines by public sector and forms major mineral revenue to the State Exchequer. The Limestone & Dolomite are also being exploited under public & private sector. The Department has disposed 5,046 mineral concession applications in the year 200506 which are higher than 3,829 applications disposed during the entire year 2004-05, which shows an over all improvement in performance over the last year and intends to dispose 6,015 Mineral Concession applications during 2006-07. The Department has disposed 2,761 Mineral concession applications up to September 2006 against a target of 2,526. Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Mineral Production The State produces about 80 to 90 million tones of major mineral and 65 million cubic meters of minor minerals. Mining of Coal, Limestone, Barytes, Oil & Natural Gas falls under mechanized large scale sector. Granite, Dolomite, Feldspar, Quartz, Clays etc., which are under semi-mechanized medium sector and all other minerals are under manual & semi-mechanized small sector. Nearly 90% of the mines fall under small sector and remaining 10% are under medium or small sectors. Major production of minerals comes from large sector but small sector contributes significantly in cascading value addition & employment. The Coal, Limestone, Dolomite, Granite, Mica, Oil & Natural Gas are under tapped and the resources of Gold, Diamond, Bauxite & Beach Sand are still not tapped. Value of Mineral Production A.P. stands 2nd in terms of major mineral production & value of mineral production & 1st in Minor Mineral Production and Value in the country. The key minerals viz., Coal, Limestone, Bauxite, Beach Sand, Uranium, Clays, Dolomite, Quartz, Feldspar, Natural Gas, Granites, Gold & Diamond will form the future growth engines for economic development. The State during 2005-06 has achieved Rs. 78.03 billion on value of Mineral Production and during the year 2006-07, a target of Rs. 81.80 billion. is fixed on the value of mineral production, which contributes to the GDP. The Department has achieved Rs. 37.14 billion against a target of Rs. 34.36 billion up to the end of September 2006. Mineral Resources & Revenue: The mineral industry of the state have seen incredible run up over the past few years. The mineral revenue rose from Rs. 5.85 billion to Rs. 10.75 billion (2005-06) level in 5 years. The mineral market can be highly unpredictable, therefore, mining need to be ever careful to guard against complacency. The growth of mineral revenue with thumping authenticity speaks about the coordination & cooperation & strong support instruments in policy & implementation. The systematic approach & development have yielded pretty stable growth irrespective of change & entry of foreign investors in the mining industry. The production of most of the minerals is good over a long period of time, say five years or more and risks of downfall are pretty negligible. Conservation of minerals should be top priority at present rather trying to enhance the production & tapping of every bit of mineral potential. Government has fixed a target of Rs. 12.65 billion for Coal (Rs. 3.37 billion), Non Coal (Rs. 8.45 billion) and Infrastructure cess on mineral bearing lands (Rs. 0.83 billion) sectors during 2006-07 against the achievement of Rs. 10.75 billion during the year 2005-06. The Department has collected Rs. 4.94 billion (Rs. 1.26 billion - Coal & Rs. 3.68 billion - Non-Coal) during the current financial year up to September 2006, which is higher than the corresponding period of 2005-06 (Rs. 43.6 billion). Mineral Dealers The Department has registered 4,772 mineral dealers upto the year 2005-06 and brought most of the dealers & process of Minerals under the purview of Mineral Dealers Rules to curb the illicit Mining and selling. Powers were delegated to the District Officers from the Regional Offices for issue of Waybills under Mineral Dealers Rules 2000. Government of A.P. has promulgated “The Andhra Pradesh Mineral Bearing Lands” (Infrastructure) Cess Rules 2005, for collection of cess on Mineral Bearing lands for

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

promotion of infrastructure facilities and rapid exploitation of mineral resources in the state. Andhra Pradesh is rapidly changing and emerging as a big state of global importance and growth of mineral economy are seen in the footprints across the country in new & exciting ways. There is a huge vote of confidence in the development of varied mineral potential in the State. Foreign investors have targeted Andhra Pradesh as a prime destination for exploration, exploitation & investments, because of progressive leadership and mineral policy. The State constantly stressed on the need for adequate regulation & vigilance be it processing & grants of mineral concession, production & mineral revenue. Before going on a change in policy or standardization, the Department always interact with the stake holders & make a check list of things or shortcomings that needs to be taken care for growth of mineral industry. To begin with problems are understood and decide what amount of regulation is adequate to mineral industry under the policy. The progressive strategies & policies have culminated in growth of leases, area, mineral production, Mineral value & grounding of mineral based industry in the state. MINOR MINERALS The Central Government has empowered the respective State Governments to frame their own rules in the case of minor minerals under section 15 (1) of M.M. (D&R) Act, 1957. Accordingly, Andhra Pradesh has framed A.P Minor Mineral Concession Rules, 1966. Subsequently, in pursuance of Granite Conservation and Development Rules, 1999, the Sate Government has 'I suitably amended the Andhra Pradesh Minor Mineral Concession Rules, 1966 in tune with G.C.D.R.1999. These amendments will ensure greater revenue earnings, scientific exploitation, greater regulation and supervision over mining activity, removal ' of procedural delays and expeditious disposal of applications. In pursuance of the 73rd Amendment to the Constitution of India (Central Act 40 of 1996), a provision has been incorporated in the Minor Mineral Rules to obtain the recommendations of Gram Sabha or Panchayats for granting of leases in the scheduled areas. In order to improve the infrastructure facilities in the mineral bearing areas, the State Government is allocating 35% of the minor mineral revenue for the establishment of infrastructure facilities. The entire minor mineral revenue is being allocated to local bodies. The funds are being distributed in the ratio of 25:50:25 to Gram panchayat, MandaI Parishad and Zilla Parishad. PERMIT SYSTEM Andhra Pradesh is the 1st State in the country to introduce permit system in the year 1975 for collection of revenues in advance before removal/dispatch of minerals from the mine site. The State Government has specified the time limit, mode & place of payments of rents and royalties for mining lease holders under Clause (a) of Subrule( 2) of Rule 27 of M.C. Rules, 1960 read with clause 3 of Part 5 of the Schedule Form-K of the Mining Lease deed through G.O.Ms.No.674, Ind. & Comm. Department, Dated.27.6.1975. Accordingly the lessee will pay the royalty for the quantities of ore or mineral intended to be transported.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

In the case of minor minerals, according to Rule 34, Assistant Directors or any officer nominated are empowered to issue Temporary Permits to the lease holders to facilitate the entrepreneurs. In the case of granite, the Government has introduced the self-removal system. As per A.P Minor Mineral Concession Rules, 1966 (Schedule-I) List of Minor Mineral 1) Building Stone 2) Rough Stone 3) Road Metal and Ballast 4) Lime Kankar/ Limestone 5) Lime Shell 6) Marble 7) Mosaic Chips 8) Morram/Gravel and Ordinary Earth 9) Ordinary Sand useful for civil Construction 10) Boulders 11) Shingle 12) Chalcedomy 13) Fullers Earth/Bentonite 14) Shale/slate 15) Rehmatti 16) Limestone slabs i) Colours and ii) Black 17) Ordinary Clay silt and Brick earth used in the Manufacture of Bricks including Mangalore tiles 18) Granite i) Black Granite Galaxy Variety, ii) Black Granite other than Galaxy Variety, iii) Colours Granite Shrikakulam Blue Variety, iv) Colour Granite other than Shrikakulam Blue Variety,v) Granite waste (either black or colour) less than 70*40*40 CM size

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

3.3

Maharashtra

Introduction: Highlights of Mineral Sector of Maharashtra Influenced by Liberalization, Privatization & Globalization policy in the year 1993 the Central Government of India framed its ‘National Mineral Policy’ with the prime motive on increasing economic growth and accordingly each of the States was to frame their ‘State Mineral Policies’ State of Maharshtra is endowed with rich major minerals reserves like coal, lime stones, Iron Ore, Manganese, Kyanite, Silimanite, Bauxite, etc & minor minerals such as Stone, Clay, Sand, Bricks, etc. Among the minor minerals stone quarry & crushing is the largest mineral covering larger area than the major minerals in the country. In the year 1999-2000 the State Government of Maharashtra came up with a revolutionary ‘State Mineral Policy’ with the tune of National Mineral Policy and was accorded sanction on 23/12/1999. As a result Maharashtra occuping11th position in 1974 has come to 6th in order of value of mineral production amongst all the States in India, contributing nearly 3.6% of the total value of mineral productions. According to the State Government Manual published in 2002 ‘State Mineral Policy & Related Matters (Manual)’ indicates that out of 2027 leases granted by the Directorate of Geology & Mining were 243 were major minerals providing around Rs. 300 core of mineral revenue per year and 1784 are minor minerals. State mineral reserves are Coal - 4990 million tones , Limestone - 1370 million tones, Iron Ore – 254 million tones, Manganese- 21 million tones, Bauxite –112 million tones, Coal - 4990 million tones, Limestone - 1370 million tones, Iron Ore – 254 million tones, Manganese- 21 million tones, Bauxite –112 million tones. In 1995, the out put was measuring 20 Lac tones worth minerals of Rs. 528 lac as sale value went up to 958 Lac tones minerals worth of Rs 1,52,107 lac as sale value. In year 2020 projected are 2640 Lac tones minerals of Rs. 4,54,024 lac as sales value. Thus Mahrashtra ranking 6th in the mineral production on National level. In 1999-2000 Leases granted: 243 major Minerals 1784 Minor Minerals recovered Rs. 300 crore of Revenue to the State. State of Maharashtra is mostly covered by Basaltic Rocks and is commonly known as ‘Deccan Trap’. There would be over 2500 to 3000 stone quarries with crushers in the State. Stone Quarry and crushing sector is treated as 'Small-Scale', ‘labor intensive’ & ‘unorganized’ providing sources of survival to over 40 to 50 lacs of population in the State of Maharahstra. Socio-Economic status of Workers Community in stone quarry /crushing sector Economically, Stone Quarry workers community basically belongs to socioeconomically lower strata. They are Landless, Homeless, Migrants, affected by Famine & Earthquakes, Tribal, Uprooted from Traditional Livelihood, Indebted,’ categories as unorganized workers across the State. In the past stone breaking was a occupation of a particular caste community namely Vadars (Stone Breakers Community). With the

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

growing displacement from their sources of livelihood various communities of common identity i.e. lower socio-economic strata across the State are found ‘tolling for survival’. Socially, over 96% of them belong to lower caste categories classified under Indian Constitution. Predominantly over 90% to 95% workers in Stone Quarry/Crusher sector belong to socio-economically deprived & marginalized communities of India, they are constitutionally categorized as Vimukta Jati (V.J.), Nomadic Tribes (N.T.), Scheduled Castes (S.C.) Sheducled Tribes (S.T.) and Other Backward Communities (O.B.C.) Once there was a monopoly of a particular tribe i.e. Vadars (Stone breakers) who depended on stone occupation for generations. Presently, we find diverged categories of families engaging themselves for survival. Living and Working Conditions: The prime motive of worker’s is 'survival'. They live next to Stone Quarry/Crushing sites in the remote areas. The huts are hardly 3 to 4 feet high, covered with temporary iron or plastic sheet and walls made up of lose stones. In general, there are absolutely no basic amenities, most pathetic & unsecured. Workers have neither Birth nor Death records... no Ration Cards... not enrolled in voting list... neither included in population survey... no benefits from any Government schemes... no Health Safeties, Schools or any Social Securities. Its an ‘identity less survival’, Health & Safety Conditions: Stone quarrying and cursing is a hazardous occupation. Workers are directly exposed to Silica Dust causing SILICOSIS (a type of occupational lung disease known as Pneumoconiosis) in addition to this there are cases of Bronchitis, Tuberculosis, Lung diseases, noise pollution damaging E-N-T and skin diseases. Workers being nomadic and illiterate they are highly prone to HIV-AIDS. Worker activities like drilling, breaking, loading, is basically physically excusive and highly exposed to pollution and unsafe conditions causing multiple injuries and frequent accidents even at the cost of losing lives. Due to lack of basic amenities the vulnerability of children and women is extremely high. Women Workers: Women are seen in equal in number at work in stone quarry/crushing activities. Besides wage discrimination, they are victims of sexual harassments and exploitation. Over 80% women suffer from anemia and vulnerable to several illnesses like irregularity in period, pregnancy related problems. The unhealthy environment and over exhaustion makes women difficult to cope up with work after the age of 40s. Though men earn relatively more most of it is spent on liquor & other vices. Maximum women are seen as the ‘bread earns’. Children in Stone Quarry: Work pattern of Stone quarrying/crushing is of contract basis. The workers get into the mining with the sunrise and return with the sunset. Children are either left to them or taken to mining to assist in work. The Mines Act, 1952 prohibited to employ children below 18 years in the mines. But the reality is different…

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Generally, the day of stone quarry children is allotted to: -

Taking care of the siblings, fetch water, wash clothes, preparation of Food & reaching it to parents, guarding door less homes. Generally children are left with no choice but at the age 10 to 12 join parents to work in the mining. Due to unsafe conditions girls are married at early age.

State wide there would be over 0.8 to 1.0 million children in stone quarry sector, who are the most vulnerable and living in victimized conditions even today. Mining Development Fund as a revolutionary step by the State Government To achieve the objectives of promoting exploration & mineral development the State Government framed ‘Maharshtra State Mineral Development Fund (Creation & Utilization) ordinance 2001. The contribution of this fund would be raised from the 10% of the total mineral revenue collecting during the preceding financial year in the State. Government of Maharashtra based on the above policy passed the following important Government Resolution making financial provisions of ‘Mining Development Fund’ (MDF) for the mining affected areas: includes ROAD, DRINKING WATER, HEALTH SERVICES, ELECTRICITY & ENVIRONMENT, SCHOOLING, ETC. (GR: MDF-1002/P.No. - 55, Industy-9, Mantralya, Mumbai-400, Dated 26th August 2002.) Unfortunately, since 1999 to 2005 over 80% of MDF is been spent on roads and insignificant amount is spent on environment, health, water and nil on education.

Minerals Year Production (Lac tones) Sale Value (Lac in Rs.)

Coal, Bauxite, Limestone, Granite, Irone ore, Manganese, Dolomite, etc. 1995 1960 2020 (projected to reach) 20 958 2640 528 1,52,107 4,54,024

In 1999-2000 State Recovered Rs. 300 crore of Revenue from Major & Minor minerals. Maharashtra is a Basaltic Rocks State and is commonly known as ‘Deccan Trap’. Stone Quarrying forms a significant portion of minor mining in the State. Growing industrialization and rapid growth in population subsequently rising demand for housing, roads, civic amenities has raised the per capita consumption of building material. Most of the construction material used for civil works has been obtained directly or indirectly from the Earth's crust. Stone Quarry and Crushing sector can be characterised as: • Small-Scale, • Labor intensive • Unorganized

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Mining in Maharashtra Major Minerals (Coal, Limestone, Iron Ore, Manganese, Kyanite, Sillimanite, Baxuite, etc,) Minor Minerals (Stone, Clay, Sand, etc.) In 1999-2000 Leases granted: • •

243 Major Minerals 1784 Minor Minerals.

Mahrashtra ranks 6th in the National mineral production. The reserves minerals are: • Coal 4990 million tones • Limestone - 1370 million tones • Iron Ore – 254 million tones • Manganese21 million tones • Bauxite – 112 million tones

According to Indian National Sample Survey of 1999-2000 out of the 39.7 crore workers in the country 36.9 crore (i.e. 93%) workers are engaged in an informal/ unorganized Sector. State wise in Maharshtra to the population of 9.38 crore 3 crore 40 lakh constitute as workers, of these 2 corer 75 lakh are in informal/unorganized sector. In all the 35 districts in the State over 2500 to 3000 Stone Quarries engaging over 4.0 to 5.0 million people in this sector. Minor Mineral Law in Maharashtra

Maharastra has three sets of rules regulating the grant of minor minerals concessions are in force. In Marathwada region the rules framed by the erstwhile State of Hyderabad, which are amended, are in force. It is called as Rules Regulating the Working of Minor Minerals (Amendment) Rules, 2003. In the Vidarbha Region the rules are in force are the ‘Maharastra Minor Minerals Extraction (Vidarbha Region) (Amendment) Rules, 2003. In the remaining parts of the Maharstra the rules applicable are ‘Bombay Minor Minerals Extraction (Amendment) Rules, 2003. The granting authorities for the various mineral concession in the different regions of the state is the competent officer. In case of a quarry lease (Bombay and marathwada region ) and mining lease (vidarbha region) The competent officer is the Collector of the district except in case of land the charge of the forest department or the PWD /building and communication / irrigations and power departments. For forest lands, the competent officer is the Divisional forest officer or the sub divisional forest officer of an independent sub division whereas in case of the quarries in charge of the PWD (Bombay region) or building and communications/ irrigation and power departments (Vidarbha region). The competent officer is the executive engineer in case of quarry permit in the Mumbai region or prospecting license in the Vidarbha region competent officer is the Mamlatdar and Mahakari in Bombay region or Tehsildar and Naib Tehsildar in Vidarbha region or the range and forest officer ( for forest lands) if the quantity to be extracted under the permits does not exceed 100 brass and the assistant and Deputy collectors where the quantity does not exceed 1000 brass. The appellate authority against the orders of the competent officer is the state government. Types of concession Bombay Region- In this region there are two types of cocessions in vogue.viz, i) quarrying lease ii) quarrying permit. The quarrying lease is similar nature to the

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

mining lease granted under MCR 1960. On the other hands quary permits means apermit to remove any mineral in specified quantities in specified (short) period. Marathwada Region- there are two types of concessions n force, namely the quarring lease and short term (3 months) concessions Vidarbha Region- the two types of concession in vogue in this region are i) mining lease ii) prospecting license. Procedure for grant In all the there regions apart from grant of lease by application the rule athorises the Government to dispose of right to remove the minor minerals by public auction or otherwise. List of Minor Minerals in Maharastra 1) Limestone and limeshale 2) All stones removed irrespective of size including stone dust either by excavation or collection 3)Shingle, gravel, murum,kankar all removed by excavation or collection a) Chalcedony pebbles used for ball mill purpose only b) Sand shall not be treated as a minor mineral when used for any of the following purposes, namely: purposes of refractory and manufacture of ceramic; metallurgical purposes optical purposes; purposes of stowing in coal mines; for manufacture of silvicrete cement; for manufacture of sodium silicate; and for manufacture of pottery and glass. 4) Ordinary clay a) used by village potter b) when used for manufacture of tiles (Mangalore or any other pupose) 5) Ordinary earth used as filling 6) slate and shale when used for building material 7) earth, silt and all types of clays etc. used for manufacture of bricks and other puposes. 8) Fullers earth or Bentonite 9) All stone (excluding granite) intended for use for decorative purposes 10) All the minor minerals (excluding granite).

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

ANNEXURE: COMPARATIVE TABLE Social Issues

Andhra Pradesh In the matter of grant of prospecting licenses and quarry licenser , preferential rights are given to (a) Labour Contract Cooperative Societies (b) unemployed geologist and Geophysicist Preferences to applications of unemployed persons who possess any recognized qualification in geology, geophysics or mining engineering or any other allied subjects

Maharashtra I. For quarry leases the order of preference in allotment is proposed in favour of (a) Persons having existing mineral based industries (b) Semi governmen t organizatio ns and Cooperativ e Societies (c) Persons who intend to put up mineral based industries II. For Quarrying Parvanas (a) Mining labourers belonging to SC&ST (b) Mine Labourers other than SC/ST

Rajasthan For Mining Leases of Masonary Stones, Kankar, Murrum and Jhajhara Stones Preferential rights in the descending order of priority – (a) Persons who undertake to install Crushers (for mining lease of masonry stone only) (b) manual workers belonging to Scheduled Castes / Scheduled Tribes 2[/Other Backward Classes] employed in Mines; (c) manual workers employed in mines; (d) persons belonging to Scheduled Castes / Scheduled Tribes 3[/Other Backward Classes.] (e) persons selected under Integrated Rural Development Programme of the Government (f) ex-soldiers including members of para military forces belonging to Rajasthan, who have been permanently disabled or dependents of those who have been killed in action; (g) Rajasthan State Government servants who have been permanently disabled while on duty or the dependents of those who have been killed on duty; (h) Unemployed graduates : and (i) Other persons. Provided that where two or more persons from amongst the above categories have applied for a mining lease in respect of the same land the applicant whose application was received earlier shall have preferential right over an applicant whose application was received later: Provided further that where such applications are received on the same day and from the same category of persons, the competent authority for grant of lease shall after taking into consideration the matters specified in sub-rule (2) above

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Types of Concessions

To Deploy Technical Qualified Mining Person to ensure Systematic and scientific mining Charges to be paid by lessee for ecological restoration Transfer of quarry

Types of Concession No provision in Three types of Minor Mineral Concession Rule Concession 1) Prospecting license 2) Quarry lease 3) Permit A prospecting license for granite and marble is granted for a maximum two years period. Quarry lease is granted for a period of 5 to 15 years. Sand leases are granted through sealed tender cum auction are granted for a maximum of 2 years. Permit is granted in the case of small deposits, which are worked out to meet the immediate or timely petty requirements of local inhabitants for a period not exceeding sixty days.

may grant lease to such one of the applicants or distribute the land in such manner between the applicants as it may deem fit. Provided that the area granted to each of them shall not be less than minimum area prescribed and the applicants also agree to take reduced area. Three types of Concession 1) Mining Lease 2) Quarry ,license 3) Short term permit Mining lease has the same meaning as assigned to it under (MM(DR) Act 1957. The Quarry License means a license wherein the license is required to pay fixed annual license fee which may be inclusive or exclusive of royalty. Short Term Permit” means a permit granted under these rules for excavation and removal of a specified quantity of a mineral within a specified period and from a specified area;

No provision in Minor Mineral Concession Rule

No provision in Minor Mineral Concession Rule

As Per Rule 18 (24) of MMCR 1986 every holder of lease (a) whose annual dead rent is more than Rs 1 lakh but less than Rs2.5 lac shall employ a qualified mines foreman (b) Whose annual dead rent is 2.5 lac or more shall deploy a whole time qualified mining engineer

No provision in MMCR

No provision in MMCR

As per rule 18 the State govt may charge certain amount per year for ecological restoration of mines and quarries from the leassee

No clear provision

No clear provision

As per rule 36 of MMCR a quarry license granted to a certain category of person

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

licenses granted to certain category of person Protection of Ecology and Environment

Panchayat Role and Share

can be transformed only to a person belonging to the same category after a period of 1 year from the commencement of license Not mentioned in the Rule

Not mentioned in the Rule

The revenue generated from auction of sand is distributed among Zilla Parishad, Mandal Parishad and Gram Panchayat @25%, 50% and 25% respectively by Zilla Parisad on a quarterly basis

(a) As per rule 29 (1) (d) of MMCR 1986 the quarry licensee has to pay certain amount per year for removal of waste dump from his mines to the State Govt (b) State Govt. can also issue a notification for submitting a scheme of eco friendly mining and getting of approval. This is applicable for all mining leases and quarry license of minor minerals No Prospecting Licence, mining lease or any other mineral concession in respect of a minor mineral shall be granted in the Schedule Area without obtaining prior recommendation of the Panchayati Raj Institutions at appropriate level as prescribed under Rajasthan Panchayati Raj (Modification of provisions in their Application to the Schedule Areas) Act, 1999 (Act No. 16 of 1999). 1% of the mineral revenue is proposed to be shared with the gram panchayat

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

3.0

CASE STUDIES

3.1

Case Study # 1: JETHWAI’s MINEWORKERS COOPERATIVE

Mining in Rajasthan is not only a reflection of violation of human rights but has caused considerable ecological and environmental damage. The tribes in this part of the country majorly depend on forest reserves to support their livelihood and illegal and unscientific mining has brought a halt to their ongoing activities. This has led to a graver problem of displacement and migration where people have migrated to Gujarat and neighbouring places seeking employment opportunities. With an aim to address the gamut of these issues MLPC initiated its activities with the mandate of protecting the rights of mineworkers in Rajasthan wherein the mineworkers recognise their rights and strive for it. The Mine Labour Protection Campaign (MLPC) came into formal existence in 1993 with the aim of addressing the dismal situation of mining and mineworkers in Rajasthan. MLPC has now evolved into a formal movement of the communities, unions and cooperatives that attempts to uplift the state of the mineworkers from the existing condition and drive them in the direction of better living for themselves, their community and their family through a range of efforts. MLPC, since inception worked on some broad activities- Awareness Generation, Formation of Cooperatives, Formation of Unions of Mineworkers, SHGs for women, Capacity building of mine workers organisation, Undertaking Research and Advocacy initiatives and other related issues. This case study is focused on the evolution of a mineworkers cooperative which is operational since 2002. BACKGROUND Rajasthan, the largest State in India has sixty- four kinds of metallic and non-metallic minerals. The workforce employed in the state’s mining industry is second to agriculture. Over 3.1 million workers, predominantly adivasis and dalits engaged in mining, toil 12 to 13 hours a day in hazardous working conditions. The mineworkers are prone to number of occupational diseases and physical injuries from the lack of safety arrangements. Without access to basic facilities and statutory benefits, mine workers put their sweat and blood, in 48 to 50 degrees Celsius of temperature in the summers or freezing cold in winters to fill the coffers of the mine owners. Brazen violations of labour laws and safety measures are rampant in the mining activities of the state. Mines operate on illegal or expired leases, haphazard dumping of mine debris and paying less than the minimum wage to mine workers are some of the glaring instances. In fact the extensive and erratic mining in Rajasthan partly derives it’s profitability from cutting the cost of labour by paying them less for long hours of work, intensive erratic mining exceeding lease limits, frequent non-payment of cess/royalty etc. The state mining department lacks the political will and wherewithal to monitor working of a couple of thousand leases. All this adds to the oppressive working conditions of large number of people eking out their living through seasonal mining activity. Seeing the drudgery and misery abounding the mineworkers, environmentalists, lawyers and activists came together to form Mine Labour Protection Campaign (MLPC) in 1994. It was aimed to protect the rights of mine workers, to promote environmental justice, to provide healthcare, occupational safety and fair wages. The campaign was

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

revived in 1999 with the formation of mineworkers unions in Jodhpur, Udaipur, Rajasmand, Dungarpur, Nagaur, Barmer and Jaisalmer in Rajasthan as well as Ambaji in Gujarat. This case study attempts to document the intervention of MLPC through formation of workers co-operative for mining activity in Jethwai. It marks a turning point in India’s history of cooperative movement, where MLPC formed its first mine workers co-operative set up by tribal, that’s of Bhils. THE LAND AND ITS PEOPLE The Jaisalmer District of Rajasthan, to which Jethwai belongs, is in the heart of the Great Thar Desert. It is sandy, dry and scorched. The terrain around, within a radius of about 60 kms is stony and rocky. The area is barren, undulating with its famous sand dunes and slopes towards the Indus valley and the Rann of Kutch. The soil here is grateful even to a little rain and turns lush green during monsoon. There is no perennial river in the district. The underground water level is very low. Geographically this district is spread over in 38,401 sq. kms which is one of the largest district and almost equal to the state of Kerala. Jaisalmer is a tourist hotspot and thousands of visitors enchanted by the beauty of this city come here every year. The tourists are fascinated by its serene sand dunes and golden monuments. One of the main draws is the daunting 12th century Jaisalmer Fort. The beautiful havenless which were built by wealthy merchants of Jaisalmer are yet another interesting aspect of the desert city. The sandstone of its myriad buildings picks up on subtle changes in the sunlight and change colour accordingly. Any shower of rain brings out a spectacular colour in this stone. Bhatti Rajput ruler Rawal Jaisal, after whom the city finds its name, founded Jaisalmer in 1156. On advice of a local hermit Eesaal he chose the Tricut Hills as his new abode abandoning his vulnerable old fort at Luderwa, just 16 kilometres northwest. In Medieval times, its prosperity was due to its location on the main trade route linking India to Egypt, Arabia, Persia, Africa and the West. The Bhatti Rajput rulers lined their coffer with gains from traditional taxes on passing by caravans and sometimes through illicit gains by rustling cattle. PROFILE OF JETHWAI Jethwai is a small village in Baramsar Panchayat Samiti of Jaisalmer District in Rajasthan. Jethwai has earned its prominence for its beautiful ‘yellow marble’ which is not marble but fine quality sandstone. The magnificent ‘Sonar Kila’ in Jaisalmer is made up of this stone. Predominantly a Bhil tribal village christened it after Jethwai talab (a Traditional reservoir), which was built by Jetha Maheshwari, a wealthy merchant. Almost 3 centuries back Natha Ram and Moda Ram, sons of Ramji who was working under Maharaja Keshwar Singh as special bodyguard. Deeply thrilled by the services of Ramji, Maharaja donated a piece of 1500 bighas land to both brothers for cultivation. Post to the fall of Maharaja Dynasty the Indian Government took the possession of the land that actually belonged to the Bhils.

Major Land Use

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Area Forest Area under mining Wasteland Area not suitable for cultivation Socio-economic profile Population (Total) Mineworkers Livestock rearing Government employees Scheduled Tribe population Scheduled Caste Population Muslims Others

4021 hectares 1667 hectares 300 hectares 263 hectares 1791 hectares 2,000 85% 13% 2% 85% 1.7% 6% 7.3%

Jethwai is situated 25 Kms North of Jaisalmer city and is core area of MLPC’s interventions. The organisation has helped in setting up first mineworkers co-operative by the Bhils. The economy of the village is largely pastoral, the predominant occupation being animal husbandry the villagers rely on subsistence cultivation of millet, cereals, pulses, vegetables and fruits. The main crops are millets, maize, pulses like moong, moth and til, wheat and barley. Vegetables like cucumber and tinda are grown. Watermelon is also grown in plenty. Mineral resources like yellow marble(Sandstone) and limestone are in abundance, which has resulted in influx of mine owners and contractors, pushing further the Bhils to deprivation and misery. 85% of the village population is engaged in mining. Apart from Bhils, there are roundabout 200 migrant workers from neighbouring districts of Jodhpur, Barmer and Ajmer. Mine owners prefer migrant population as they are docile and subservient. They agree to work for lesser wages and without much involvement in other activities of the village. BHILS AND THEIR LANDS The Bhils, traditionally hunting community, inhabit mainly Western and Southern districts of Rajasthan. The generic term, which describes their tribe apparently, derives its name from bil, meaning bow, which describes their original talent and strength. With their proficiency in hunting, the Bhils built up good rapport with the landed gentry, such as the Rajas and Thakurs. In the hilly terrains of Rajasthan, the Bhils gained in strength by intermingling with rebellious, outcast Rajputs who sought shelter with them. Rajput rulers came to value the guerrilla tactics of the Bhils, particularly since they were at ease in the hilly terrain. Various fierce invasions could not be repelled without their active support. Leading a camouflaged existence, the Bhils were unable to update their material techniques and this became the main cause of their relegation to the past where they stood as brave symbol rather than a real threat to an enemy. The Bhils living in Jethwai village worked as trusted servants and bodyguards to landed elites. As alimony, they received small land holdings to farm on for subsistence. In the inhospitable terrain, the Bhils have not only survived with dignity but have also protected nature as ecosystem trustees.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Post to the India’s Independence, Bhils living in Jethwai village for generations, suffered great injustice as the only remaining source of survival- the land- was snatched away from them by State Forest Department. The State Forest Act sees their land as official property for the purposes of extraction and earning revenue by leashing it for mining, in which Bhils seem to be regarded as illegitimate intruders and encroachers. Impoverished Bhils were robbed of their land by the Forest Law infringing on their right to life. However, the Fifth and Sixth Schedules of the Indian Constitution do provide protection of tribal land rights, but in reality it allows traditional livelihood rights to tribal in a very limited way. The major inflow of the rich and resourceful better equipped with skills of expropriation, purchasing mines in the form of leases shattering the dream of the Bhil becoming proud owners of the mines. It began the major outflow of sandstone, which is till in great demand, from the village to the urban market, thereby intensifying the uprooting of Bhils. The acquisition of tribal land dismantled village pastures, grazing grounds and sacred groves depriving the poor and marginal households of their incomes. Livelihood crisis accentuated by the failure of agriculture and degradation of pastoral land, compounded by recurring drought, left the Bhils with no option but to work in the mines. The Bhils were forced into labour market at the lowest rung. “Bhils living in Jethwai used to earn money by selling woods from the googal tree used in making gums. Now the forests are gone so are the trees. It is only the stones that are left. Bhils earn a living from mining these stones only,” said Khushala Ram, a mineworker. As the present was hazy and future seemed dark, the Bhils and other marginalised communities living in Jethwai village were forced to join mining as unskilled worker. Most of the work in the mines can be classed as unskilled, except for drilling and blasting and operating machinery like cranes. Drilling and blasting is done either by skilled workers or unskilled experienced workers. Other skilled work is performed by crane operators, compressor operators and hacksaw mechanics. However, mine owners prefer to employ people from neighbouring districts as they can easily be made to work longer hours. Those who have had to migrate in search of labour generally do not bargain or argue about their employment conditions, and rarely ask for leave. “Migrant mineworkers also bring their families with them. Even there is evidence that families of male migrant workers, including their children, are frequently also employed in the mines in Jethwai,” said Kishen Lal Jakhar of MLPC, working among the mineworkers in Western Rajasthan. 95% of the workers engaged in mines are male and 5% Female. The processing in the stone quarries is typically done by men only, because women are considered too slow and unfit to perform the work. Women are engaged mainly in removing the debris and pebbles from the mine and doing other odd jobs. Female workers are systematically paid less than male workers. Female workers earn a meagre Rs. 30-40 a day doing backbreaking work and a male worker gets between Rupees 60 and 150 a day. The skilled male worker, who has the experience of working in the mines over 15-25 years can only expect to Rs. 150 per day, provided they worked for 14 hours a day.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Flouting all the norms of Child Labour (Prohibition and Regulation) Act, 1986, children are employed in hazardous industry, like mining. Child labour is cheap for the unorganised mining sector like in quarrying, stone crushing units, marble and masonry stone mining, transporting, head loading and stone breaking. Children join hands with their father to get into the mine labour force to supplement the low incomes of their families and to pay up the debts as bonded labourers. As they are not considered full fledged worker in the mines, either they do not get the wages or depends on the mercy of unscrupulous supervisors and contractors who hires them. During the training period, child workers are paid any wages. Mine owners employ child workers as they squeeze maximum outputs without paying any wages. In the mine fields, child workers are often physically, mentally and sexually abused. Labour laws are thrown into the winds with impunity. Such crimes of child abuse committed by mining companies- whether big or small either goes unnoticed or deliberately pushed under the warps by the government. WAGES AND DEBT BONDAGE The mine owners in the village deploy two types of wage systems - day wages and piece rate wages. Larger the block the better is the payment. In general, mining is considered a bad payer; the industry only reserves some 4 to 5 percent of total production costs for labour. The mine owners have adopted daily wage pattern but they do not pay the workers daily. They promise to pay the workers at the end of the every month but usually, they have to wait 4 to 5 months for each month’s wages. As the workers are not paid their wages in time so they are forced to borrow from the mine owner. Then, they are pushed to debt bondage when they are forced to work off their debts. The rate of payment is set in accordance to time it was borrowed. Hence, even after years of labour incurred the debt remains unpaid. However, mine workers tend to accept advances from mine owner or contractor, which result in high levels of indebtedness, forcing workers into bonded labour. Advances are often accepted as a means to ensure regular employment and full payment of wages. Monies advanced are subsequently docked from workers’ wages. At times of high financial need, such as marriages, funerals or illnesses requiring medical treatment, workers take out higher loans from mine owners or contractor. Generally, there is no one else they can turn to who might be prepared to provide financial support. Workers rarely manage to fully repay these higher debts and employers tend to take advantage of the situation by paying out lower wages. Some mine owners actually wait for opportunities to extend their loans to workers in order to obtain cheap labour. As mine owners calculate that most workers will become less productive after the age of 30, they typically discontinue the extension of loans to the workers once they reach this age. These workers are subsequently forced to remain in the employment of these employers for at least another five years or more, at reduced wages. Occasionally, employees are forced to repay all of their debts upon changing jobs. Generally, however, the new employer repays the debt and the loan is transferred.

ACCIDENTS, BUT NO COMPENSATION FROM MINEOWNERS

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

In the mines, accidents are frequent, as most of the work is done manually with the help of heavy hammers, chisels and other primitive tools. Often heavy slabs of stone fall on workers, resulting in serious injuries. Earning a daily wage of Rs 60 for 12 hours of work, mineworkers do not get medical compensation for injuries sustained at work. On the contrary, workers are deprived of wages if they are unable to report for work due to sickness or injury. The high rate of injury forces the workers to borrow from the mine owners, forcing them into a debt trap, as what they earn is barely enough to sustain them. The debts range from between Rs 10,000 to 150,000 for each family of workers. Their status robs them of their freedom - they are not even allowed to move and work elsewhere until they can pay back their debts. Besides, causing injuries the minefields are also turning to be the death fields for millions of mine workers. In various fatal accidents, rising continuously and alarmingly, hundreds of workers are being killed every year in the state. The State’s Mineral Policy implemented in 2004, with its exclusive emphasis on exploiting the vast mineral wealth further threw the working conditions of mine workers in peril. Workers either die or become permanently incapacitated by the accident in the minefield. But till today not even 1% of those killed or injured have been given adequate compensation. Offering a paltry sum by the mine owners silences the poor and defenceless dependents of those killed or injured. In all such cases, the mine owners are to be squarely blamed for making the workers toil in a most unscientific manner. Mine owners intention is only to squeeze maximum profit, without caring for lives and limbs. Unabashedly, they push the workers into the ‘jaws of death’. MLPC’s INTERVENTION TO COUNTER MINEWORKERS OPPRESSION Seeing the abysmal condition abounding the workers and indignities heaped on them by the mine owners, Mine Labour Protection Campaign (MLPC) stepped in 1999 at Jethwai. MLPC engaged in organising mineworkers in Rajasthan since 1994 lend a helping hand to form mineworkers union at Jethwai. In August 2001 ‘Pathar Khan Mazdoor Union’ (Stone Mineworkers Union) was formed with 95 members to address the pernicious issues confronting them. To counter the onslaught and free the workers from the vortex of oppression, the union raised matters like timely payment, safety conditions for mine workers, shelter, register attendance, regular employment, access to provident fund and proper compensation in accident cases. Pathar Khan Mazdoor Union functioned as key facilitator and intervened whenever the rights of the mine workers were violated. Formation of union in Jethwai created ripples in the village, particularly in restoring the rights back to mine workers. But this did not bring a sea change particularly in fulfilling the genuine requirements of community such as ensuring wages for every worker. “The Union helped the villagers to unite and organise to fight exploitation in the private mines. The Union increased workers’ bargaining power,” said Kishan Lal Jakhar, Field Co-ordinator, Western Rajasthan, MLPC.

MINE COOPERATIVE HERALDS A NEW BEGINNING IN THE LIVES OF BHILS

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

In a path breaking shift MLPC worked with the mine workers of Jethwai to become the owners of the resources of the mining. The purpose was to give them a sense of ownership and dignity by forming co-operative. The idea of forming co-operative for mining activity was a new experience for the mineworkers. With the support from MLPC, Pathar Khan Shramik Theka Sahkari Samiti Limited (PKSTSSL) was registered in November 2002 to facilitate the mine workers to take up mining leases. It is one of the India’s first mining co-operatives. Heralding a new beginning in the lives of mineworkers from Bhil community, who dreamt for decades to start and operate a mine. “Prior to formation of cooperative MLPC organised meetings and workers to sensitise us on the benefits of forming co-operatives. A 7-day training camp was organised at Jethwai in which Central Workers Education Board (CWEB) Regional Director, RS Mathur, gave us basic tips on forming co-operatives. In this training camp, there were 40 participants out of which 17 became members of the co-operative. Others were reluctant to get involved in the co-operative as they were afraid of losing their jobs in the mines. However, they were interested to join the cooperative but their huge indebtedness pulled them back.” said Narayan Ram, a member of the cooperative. Jethwai’s Pathar Khan Shramik Theka Sahkari Samiti Limited is an assemblage of 17 mineworkers that undertakes activities as an enterprise to earn profit out of their labour. The profit earned is equally distributed among the cooperative members, the mineworkers. Since acquiring leases to extract minerals, the cooperatives have been earning considerable profit. “The private mine owners ganged up against us to delay the allotment of leases to our cooperative. Even the patwari did not show up for months to measure the allotted land. Our cooperative were allotted two leases of one hectare each, on paying a dead rent of Rs. 20,000 per hectare in September 2003. Only Bersi Ram and I started working and others finally joined in December 2003. But, when we started we had no crane to remove the big stones during mining operation. Even the private mine owners were creating hindrances in our way by putting pressure on the agencies, from where we hired the cranes. Moreover, hiring a crane from outside for Rs.40,000 per month, which we thought was sheer wastage of money. To purchase a new crane at Rs 9.5 lakhs for the cooperative was another challenge. With Rs. 4.5 lakhs as a non-interest loan from MLPC, Rs. 2 lakhs financed by UCO Bank and Rs. 2 lakhs of the cooperative, we brought a crane in June 2004. After having this crane, the production of our cooperative has gone up by 20%,” said Kanha Ram, the Cooperative’s President. Despite constant pressures from private mine owners the PKSTSSL, earns enough profit to pay our Rs.30,000 as monthly instalments to UCO Bank. It is also able to raise considerably the income of its members. Khushala Ram, a member of the cooperative, is quite ecstatic narrating his freedom from the exploitative clutches of the private mine owners. “Now I earn Rs. 200 a day, twice what I got earlier from the same amount of work. Earlier, we used to work for 10 days putting backbreaking work from 6 a.m. to 9 a.m. Then we have to waste 5 to 10 days running after the thekhedar (contractor) to get our wages. Apart from extraction and processing work, mine workers have to load the stones in the truck, for which they were not paid. But now we are paid by the truck owners for the loading job,” said Khushala Ram. Khushala Ram and sixteen other members of the cooperative

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

earn around Rs. 4,000 to Rs. 5,000 a month. They used to earn between Rs.1,500 and Rs 2,000 and always were in debt as there was no timely payment. “Mineworkers are born in debt and die with debt. Most of the debt is because of medical expenses incurred for elders in family who have spent the prime period of time working in mines and acquired occupational diseases like silicosis. While forming the co-operative at Jethwai we encouraged mine workers trapped in bonded labour to join the cooperative, but there was reluctance. MLPC extended monetary help to free the workers from the trap of the mine owners. One month’s food grain was lent to the member by the cooperative, which helped to free them from the bondage. This experience was a lesson to all the mine workers in Jethwai. Even it helped the cooperative and the villagers to put pressure to ensure that the mine owners pay fair wages to the workers,” said Kishen Lal Jakhar of MLPC “MLPC’s relentless endeavour has been able to bring change in the lives of mineworkers. Through its support, our co-operative has set an example in strengthening and empowering of mine workers in Jethwai. Our cooperative regular interacts with the mine owners for fair wages, duty hours and other benefits the mineworkers are entitled for. Even our cooperative has initiated the process with the village panchayat to ensure justice to the villagers who work as mineworkers and check unauthorised and illegal mining,” said Kanha Ram “Workers engaged by private mine owners had to stay put either under the open sky or in small huts covered with tin sheets on stone pillars just two and half feet high. In the sweltering summer or freezing cold, it was the only shelter available to the workers, where they could enter in a sitting posture. Inside the hut, the inner space was also insufficient. But now at the mine owned by the cooperative, we have built a room and a well for workers so that they can rest, whenever they need after putting up a hard labour,” added Kanha Ram Members of the co-operative have paid off all their debts. Earlier, they used kerosene lamps at night but now all of them have electricity. Most of their children were forced to leave on the account of family’s increasing debt now they are back at school. “It was quite difficult to arrange square meal for the family when we worked under private mine owners but now we have been able to free ourselves from our impoverished condition,” said Narayan Ram Pathar Khan Shramik Theka Sahkari Samiti Limited Rs. 2,000-2,500 for a truckload of limestone weighting 15-20 tonnes and a truck produces around Rs 12,000-15,000 worth of limestone in three to four days; the money is equally distributed among the three to four members who quarried for that particular truck. “Since we get tired doing three to four days of exhausting work, we need at least one day’s rest. So all members do not work at one time,” said Kanha Ram. Seven to eight truckloads of limestone, quarried in a month, earn the Jethwai cooperative around Rs 84,000-Rs 96,000. The government charges a royalty of Rs 65 per tonne. After paying out Rs 50,000-Rs 65,000 to its 17 members, the rest of the money is used to pay the monthly instalment for the crane. The constitution of the Jethwai cooperative provides for the equal distribution of 25% of the accumulated profits among its members annually. The rest is used to further develop the cooperative.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

On track to pay up its bank instalments within six months, and the MLPC money in 22 months, the cooperative is well on the path to success. Wage rates range between Rs 50 and Rs 150, as opposed to Rs 30-Rs 100 working in the private mines. The village is also demanding the rehabilitation of mines and tax rights over mining in the area. Aware of the environmental implications of mining activities, workers at the cooperative have resorted to pit filing and the planting of trees. Taking the cue from the formation of mineworkers co-operative, Women have formed a 20-member strong Self- Help Group (SHG) under the nomenclature ‘Laxmi Swamsahayata Samhu’. The SHG builds capacities of its members in making detergent, incense sticks, toothpaste and powder, candles and pain relief ointment so that they are independent enough to run their household. The SHG also runs a small shop that provides villagers with all their daily requirements right there in the village. Within a span of four years, the cooperative’s activities had a cascading effect on the empowerment of the villagers who have so far been neglected and kept out from the development process. Management of natural resources have improved, and Jethwai today is definitely a better place to live in. Now cooperative assists the village panchayat in checking illegal and unauthorised mining. This would have had a benevolent impact on a landscape, which is ravaged by indiscriminate mining and destruction of habitat. In Jethwai, where the cooperative owns a mine, villagers have taken a decision to impose fee on mineral extraction so that the panchayat can generate revenue from mining for using it for the development of the village. Now it is mandatory to obtain ‘No Objection Certificate’ (NOC) from the panchayat for obtaining mining lease. Keeping the villagers’ welfare and its surrounding supreme in the mind as a direct fall out of it villagers have been able to establish themselves as leaders in their own right. It had inspired other gram panchayats of Jaisalmer district to start playing proactive role in village level development programme, particularly on issuing of NOC for mining leases and protecting the traditional livelihood system. These panchayats are developing their village environment management plans so that the mining activities do not damage their natural resource and livelihood support system. Jethwai’s success has inspired the residents of the neighbouring village of Moolsagar where there are demands for the formation of a similar cooperative, and where a mineworkers union has already being formed.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

3.2

Case Study # 2: KUPPAM GREEN

INTRODUCTION About 25 % of the world granite reserves are in India according to ‘Indian Bureau of Quarries,’ a Government of India organisation. Recoverable reserves are 1027421 million cubic metres in the total reserves at already identified areas (as on 1-4-1995) with Maximum concentration of deposits in Karnataka, Andhra Pradesh, Tamil Nadu and Kerala. Deposits are also identified recently in Uttar Pradesh, Madhya Pradesh, Rajasthan, Gujarat, Maharashtra, Orissa, Bihar, West Bengal. There are many more vast areas of reserves yet to be identified and tapped. Reserves are also in numerous types, colours and patterns; over 100 varieties identified so far and more varieties are being explored and search for new varieties is a continuous process. India is amongst the leading exporter countries of stones in the world, being a close competitor to China and Italy who are the leaders. In Million rupees, Indian Stone exports amounted to 34 Billion Rupees in 2003-04, with Granite alone accounting for 26 Billion Rupees. Sandstones are fast emerging as a leading export segment with an 11% share in exports. INDIAN GRANITE PRODUCTION (In thousand tons) 199596 Granite

4555

199697 4550

199798 4950

199899 5000

19992000 5300

200001 5900

200102 6205

200203 6710

200304 7059

2004-05 7759

GRANITE EXPORTS FROM INDIA (Million Rupees) 1995- 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 96 Granite and 10827 11388 9577 10130 16712 19540 20463 24606 26538 Products thereof Product

Andhra Pradesh is one of the hotspot with the granite-estimated 107242 million cubic meters. The world-renowned Kuppam green and gray, black galaxy granite, Srikakulam blue, Warangal and Khammam black, Tan Brown of Karimnagar, Tiger Skin of Chittoor etc. occur in plentiful quantities. Granite worth about Rs.3000 million (US $ 60 million) is being exported. There are significant opportunities for making novel products with polished granite, which have a good demand in the international market. KUPPAM – LAND AND PEOPLE Kuppam is a census town in Chittoor district in the Indian state of Andhra Pradesh. It is 105km from Bangalore and 250km from Chennai. It is famous for its granite quarries, so much so that a granite variety is named after the town, viz. Kuppam Green. Kuppam shot to fame after the ex AP Chief Minister and the TDP supremo N. Chandra Babu Naidu won the elections from this constituency. Kuppam was also the site of an interesting experiment by Hewlett Packard which founded the i-community there. As of 2001 India census, Kuppam had a population of 18,803. Males constitute 51% of the population and females 49%. Kuppam has an average literacy rate of 69%, higher than the national average of 59.5%: male literacy is 75%, and female literacy is 62%. In Kuppam, 14% of the population is under 6 years of age.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

• • • • •

Kuppam area is part of DPAP block and chronically drought affected; Eighty-five percent of the population in the area live below the poverty line Only 10% of the gross cropped area is under assured source of irrigation Saline lands Soil is composed of gravel and stones of varying sizes with low level of organic matter

KUPPAM - HIGHLY PAMPERED TOWN Kuppam is the electoral constituency of ex Chief Minister Mr. Chandrababu Naidu. He is Member of Legislative Assembly (MLA) for almost 20 years. He was chief minister of Andhra Pradesh for 9 years continuously and highly influential Chief Minister of that time. When he was chief Minister he wanted to make Kuppam as the model village with ultra modern communication facilities, educational facilities and modern agricultural projects. HP –I community which was initiated by HP international was highly published programme through out the world. Kuppam project was the innovative agricultural initiative taken at that time. The fact is both the programmes were a miserable failure but to the world it was a great success. Mr. Chandrababu Naidu and his dedicated followers are very keen not to bring bad name to the Kuppam so that his Image, which he built over time, should not be damaged. There is a very strange and interesting incident, which proves the above claims. On July 4, 2003 her brother beat a women to death and her relatives since she was diagnosed HIV positive. This incident was not reported by any of the journalists, except one bold person. Once the journalist published the repot it became national news immediately. Despite of this fact no arrest or enquiry was made rather a defamation case worth of Rs 20 lakh has been slapped on the journalist for writing the story by the local TDP outfits. The journalist is still fighting the case in the local court. MINING AND PROCESSING Quarrying in Kuppam started some 50 years before by a businessman Mr. Basha, who found a huge market for the Kuppam green internationally and he setup his first quarry and processing plant in Kuppam in the name of Evershine. Now there are some 4 internationally known companies operating in extracting the Kuppam Green and gray granite. There are 21 legal quarries operating. All quarry owners are politically powerful and well connected to the Telegu Desam Party (TDP) and to the ex chief minister Mr. Chandrababu Naidu. Some of them from Tamil Nadu and some from Bangalore setup the processing units in kuppam for Example Archanias has the headquater in Chennai and Evershine has the office in Bangalore. The locals own the quarry and the outsiders own the processing units. The possessing units buy the raw granite cubes according to requirement and process it. Quarry licensing is usually for 20 years and maximum allowed area is not more than 2 hectares. Mine owners get lease license from the government to mine a certain area. In Kuppam and other parts of Chittoor, mine owners are not involved in retail selling or processing or exporting of granite. The mined granite are sized or trimmed as per the specification of buyers, who are generally traders with collection centres or

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

warehouses in Chennai, or in Bangalore. The traders sell the crude or roughly trimmed sandstones to either domestic or international customers. There are several processing units in Kuppam engaged in processing and polishing of granite for international customers. These industrial units have agents in Kuppam quarries areas and they buy the approved quality of granite. Then they are sent to these processing units for the final works. Some granite exporters act as agents with purchasing offices in Kuppam and export directly from the quarries. Around 80% of quarrying are illegal, as there is no control from the government the quarry owners blast the stones wherever they like. It is evident once one travels around the village and can easily see the places readily quarried for the stone. According to people the quarry owners mine non-leased area first and then only the leased area which is in violation of existing laws. The other reason for the above illegal mining is growing demand from the western countries in order to complete the orders they mine the granite illegally without permit from government. DEEP BORE BLASTING THREATENING FOR MINING WORKERS In total disregard of the law, untrained miner workers of Kuppam quarries detonate explosives to break down the rocks. The vibrations caused by detonations, apart from generating noise, are opening up joints, fractures and fissures already there in the hill slopes. The deep bore blasting in Kuppam quarries is done even during the nights and early mornings. PROCESSING UNITS IN KUPPAM Basha's Evershine Group India exports quality granite products since 1949. The pioneer and the oldest granite industry existing for three generations owned by Mohammed Basha Sahib, the founder of Evershine Group and his sons Asgar Ahmed Basha, Munavar Basha are looking after the group. Other Group companies are: Monumental Memorials, Kwality Monuments, Evershine Granites P. Ltd, Evershine Granite Quarries, Evershine Monuments, Evershine Granitiles, Kerbs & Cubes Continental, India Granite Artworks, G.B. Enterprises, and Unique Granites P. Ltd. With export turnover over 200 million rupees and exporting to Australia, Austria, Belgium, Canada, China, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Malaysia, New Zealand, Norway, Singapore, Spain, Sweden, Switzerland, Taiwan, Province Of China, United Kingdom, United States. Evershine Granites This company is also owned by one of the son of Mr. Mohammed Basha Sahib. Company is also exporting natural/ processed granite products all over the World since 1947 to USA, Hawaii, Canada, UK, Scotland, Ireland, Italy, Spain, France, Switzerland, Germany, Belgium, Austria, Sweden, Finland, Denmark, Norway, Middle East, Israel, Japan, Hong Kong, China, Singapore, Taiwan, Malaysia, Australia, New Zealand, etc. Archean Granites Private Limited Started in 1984 at a time when the Portuguese held sway over the world markets in a near monopolistic stronghold on the industry. The company specializes in landscape granite stones and has an annual production of 200,000 tons of cobblestones and kerbstones. Archean Granites is the largest supplier of cobblestones to the US and Europeans. They have a processing unit in Kuppam. They have 6 sips sailing over the

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

world under the name Goodearth Maritime. The company also owns 10000 acres of land in Gujarat for salt production biggest in Asia in the name of Jakhau Salt they also mine Iron ore and Bauxite and has mines In Orrisa, Jharkand and in Gujarat. Rathna Mineral Enterprises It was established in the year 1987 with KUPPAM GREEN QUARRY. Subsequently by acquiring LAVENDER BLUE and VIZAK BLUE Quarries and increasing export of raw blocks to about two thousand CBM per year to ITALY and other European Countries, the company specializes in exports of Gravestone and Tombstone to Austria, Belgium, France, Germany, Italy, Netherlands, Poland, and Spain. They have their own quarry and processing house in Kuppam WORKING CONDITION INSIDE THE STONE PROCESSING UNITS All visited stone polishing units share a common practice of violating the laws of the safety of labour (sans glows, eye class, gum boots, mask, uniforms etc..). The house keeping is very pathetic with stones and wastes littered everywhere with huge dust allover the place including the air. Poor ventilation is a very common phenomenon with the processing units irrespective of brand and status of the company. Even though labour is not found inside the factory, there are more in the camps. CAMPS There are more than 1500 small and big camps in and around Kuppam area. These camps are the places where the stones are hand processed. Almost all rough granite which is used in pavements, garden, and other public places are processed in the camps. The camps can be small or big housing one person to 100 people at a time. All the processing units outsource the service of the camp for their raw cut granite or rough granite. This is the major place where child labourers are employed. One can walk through the camps and easily see the children breaking the stones or shaping the stones. The camp are usually owned by the local people who know the stone work like shaping, carving etc.. Even some companies like R.R granite from Bangalore own a big camp. All most all people working in the camps know where the stone is going. Because they are informed for whom they are making and what for. One can talk to them and know for which country they are making the stones. TRANSPORTATION OF STONES The stones are transported in many ways, the legal stones are sent to either Mangalore (Karnataka) port or Chennai (Tamil Nadu) port and illegal stones are sent to Tuticorin (Tamil Nadu). The illegal ones are taken from small roads escaping the road authorities and Tax officers and enter Tamil Nadu border which is 10 KM and go to Tuticorin port which is 450 Km with the same purchase order used for the legal stones i.e. one purchase order is used for two shipments. The polished stones are packed in wooden boxes and sent to port through the containers. The raw stones are carried openly in the big tucks. Tuticorin port handled around 335382 tons of stone from April 2006 to December 2006 while the Chennai port handled 10.88 lakh tonnes of granite blocks during 2005-06

LABOUR IN KUPPAM Under the Constitution of India, labour is on the Concurrent List. This implies that both the Central and State governments can enact legislation in the benefit of the

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

workers. The Quarries Act, 1952, regulates safety, health and welfare of workers in quarries. Employment in quarries, trade union rights and liabilities, dispute resolution, contract labour are also regulated under different Acts and Rules. Despite all these safeguards, labourers are one of the most-exploited segements of the mining industry in Kuppam and in other areas. Some of the reasons for exploitation of labour are: Consecutive drought for seven years in Kuppam region made people poor and absence of alternate livelihood forced people of Kuppam to take the quarry related jobs. There are around 2000 people who migrate from Kuppam to Bangalore in search of job every day. Illiteracy among the people is also another issue that makes the labourers vulnerable. The politicians and district administrations safeguards mine owners. Low media penetration - There is not even one negative story from Kuppam in the local media and in the national media which prevents these issues to get highlighted to get desired attention. WAGES IN KUPPAM The wages system varies place to place but the minimum wages for people working in mining operations are from 80 rupees to 150 rupees and at processing units it varies from 2500 to 4000 rupees/per month. In the camps it depends upon the person’s capability to finish the stone, however the labour employed in camps earns more than other people in mining operations. In the processing units even a child labour earns not less than 200 rupees while a good stone breaker can earn around 250 to 300 rupees a day. KUPPAM AND ALCOHOLISM The growing trend of alcoholism has brought more misery to the lives of labourers and their families. Women and children are the worst affected. As much as 85% of the mineworkers are alcoholics it includes male, female and children. A local brand called Kallu (Palm wine, also called palm toddy or simply toddy) is an alcoholic beverage created from the sap of various species of palm tree. The drink is particularly common in parts of South India (particularly Andhra Pradesh, Kerala and Tamil Nadu, where it is known by the name of kallu), manufactured and sold by the local people. The drink being cheap and affordable makes it very popular among the workers. HEALTH STANDARDS IN KUPPAM While death is sudden in accidents, it can be slow and painful for miners afflicted by occupational diseases. Silicosis, tuberculosis and bronchitis due to inhalation of dust are common among mineworkers. Mechanization generates dust and finer particles, which remain suspended in the air for longer periods and is inhaled by the miners. The absence of safety equipment also increases the vulnerability of the workers. SILICOSIS, THE KILLER DISEASE Workers in quarries belong to the high-risk group. They inhale minute dust particles (varying in sizes from 0.1 micron to 150 microns). The average life of a mineworker is estimated to be between 40 to 50 years. Inhalation and deposition of silica particles in the lungs result in silicosis, which leads to pulmonary fibrosis and premature death. Mine owners are insensitive to the situation and not keen on providing safety equipment to the workers. Lack of awareness and poor nutritional status worsen the situation.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

The problem is serious in Kuppam and surrounded mining area because there is no hospital or healthcare center to diagnose and treat Tuberculosis (TB) and Silicosis. There is one Government general hospital with 100 beds in Kuppam but it does not have treatment facility for Silicosis, Cancer or TB. This is reflected from the figures received from only one primary health care center which houses 180 TB, 60 Cancer, 48 Asthma and 28 AIDS patients. In the absence of qualified doctors, the people of Kuppam including the mineworkers have to rely on unqualified local doctors for treatment. Mine owners or the contractors are not responsible for any treatment or healthcare facility either in case of any minor or major accidents. Labourers pay for their own medical expenses. Workers are not paid for the days they are absent from work due to accidents or sickness. The vulnerability of mineworkers, reflected in the accident rate, is compounded by the fact that the mine owners do not adhere to the Workmen’s Compensation Act. WOMEN WORKERS The women have a less presence among the workforce in these quarries. Women workers are mainly employed in making granite granules used in roads. These are made from the waste granite stones. One can see these women breaking stones into small pieces with a small hammer on the roadside. They earn according to the amount of stone they break every day. Their average earning for the day comes around 75 rupees to 100 rupees. In quarries increasing mechanization has affected the livelihood of women since most of the work done by them like loading of waste rocks and clearing of place in quarries is being increasingly taken over by machines. CHILD LABOUR Children are considered to be the most important asset of a nation, yet they are often the most exploited segment of the population. The economic exploitation of children in India has increased markedly in recent years. The UNDP's Human Development Report puts the number of child workers in India at about 10% of the total labour force. India has the largest number of non-school going children workers in the world. The Constitution of India prohibits the employment of children below the age of 14 years in factories, quarries or hazardous occupations. The National Policy for Children, compiled in 1974, envisages adequate services for children during their period of growth in order to ensure full physical, mental and social development. Child labour deprives children of educational opportunities, obstructs chances of vocational training and hampers their intellectual development. An estimate suggests that out of the 15000 mineworkers in Kuppam, roughly 2500 to 3000 are children. Today the constant growth of child labour in Kuppam sandstone quarries is explained by a very strange reason. Usually the child labour system exists due to economic reasons but in Kuppam it is the social system that aids in increasing child labour. Kuppam houses a large number of unwed mothers - illegal relationships and extra marital relations being high in number, the children born to these parents are left out with no care and guidance in the society. These children land up as the child labour in the quarries and related occupations. There is a rehabilitation school run by the State government where around 900 children are enrolled inspite of which around 3000 child labour still exits in Kuppam. The reasons why granite industry employs child labour is access to cheap labour, and the flexible hands and gentle pressure are the best to

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

chisel granite to required shape and forms which also leads to reduced wastage. With this talent a child earns 150 to 200 rupees a day.

BONDED LABOUR The Government of India has consistently maintained a proactive approach to the issue of forced or bonded labourers in the country. It recognizes this evil system as a gross infringement of the fundamental human rights and is committed to its total eradication in the shortest possible time. India has ratified ILO Convention No.29 (Forced Labour Convention 1930) on 30th November 1954. Following the ratification, the Bonded Labour System (Abolition) Act, 1976, was passed by the Parliament. It freed unilaterally all the bonded labourers with simultaneous liquidation of their debts. The state governments are implementing the Act. Though not much information is available on the extent of bonded labour system in sandstone quarries, it can be assumed that the practice is still prevalent in few states. The granite quarries of Andhra Pradesh still house the bonded labour system. However, there is no accurate statistical picture of the bonded labour system, following are some of the instances, which allow persistence of the bonded labour system. During rainy season (July to September) there is no mining activity in the area and hence no employment. Labourers are forced to take advance of Rs 10,000 to Rs 15,000 to meet their needs and requirements. According to contract, the borrowed amount has to be returned to the owner with due interest in a certain period of time. However, the workers are never able to do so. Gradually, the cycle of debt begins rolling turning one into a bonded labourer to a particular mine owner or contractor for no less than 510 years. This is a common practice in Kuppam and surrounding areas. The money disbursed to these labourers during accidents or deaths are also treated as debt and many times the children of a borrower are forced to succumb to the bonded labour system. Alcoholism is another way of retaining bonded labour in Kuppam quarries.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

3.3 Case Study # 3: Stone Quarry Workers Community in Maharashtra The Stone Quarry workers are basically unorganized from lower socio- economic strata & landless workers from within & neighboring States, mostly affected by famine, earthquake and as well as Tribal areas. The Socio-Economic status of Stone quarry workers is extremely marginalized. Over 96% of them belong to lower caste categories classified under Indian Constitution survive on" hand to mouth". They keep on continuous Migration from one stone quarry to another stone quarry across the districts & State along with their family. There would be approximately 40 to 50 lakh workers all over Maharashtra engaged in Stone Quarrying & Crushing activities The prime motive of worker’s is 'survival'. They live next to Stone Quarry/Crushing sites in the remote areas. The huts are hardly 3 to 4 feet high, covered with temporary iron or plastic sheet and walls made up of lose stones. In general there are absolutely no basic amenities, most pathetic & unsecured. Workers have neither Birth nor Death records... no Ration Cards... not enrolled in voting list... neither included in population survey... no benefits from any Government schemes... no Health Safeties, Schools or any Social Securities. Its an identity less survivals’, Stone quarrying and cursing is a hazardous occupation. Workers are directly exposed to Silica Dust causing SILICOSIS (a type of occupational lung disease known as Pneumoconiosis) in addition to this there are cases of Bronchitis, Tuberculosis, Lung diseases, noise pollution damaging E-N-T and skin diseases. Number of workers affected by HIV-AIDS is also high. Worker activities like drilling, breaking, loading, is basically physically excusive and highly exposed to pollution and unsafe conditions causing multiple injuries and frequent accidents even at the cost of losing lives. Work pattern of Stone quarrying/crushing is of contract basis. The workers get into the mining with the sunrise and return with the sunset. Children are either left to themselves or taken to mining to assist in work. Generally, the day of stone quarry children is allotted to: • House works includes, food preparation, fetch water, washing clothes, guarding the door less houses, etc. Generally these works are the responsibilities of girl child • Taking care of siblings. This is the most common responsibility. • Reaching food to parents in the mining site mostly by male child. • Assist parents in mining work. Stone Quarry community children's future is decided at very childhood age. Practically, all of them are left with no alternative but to join the parents in their works as they grow

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

SANTULAN’s activities with Stone quarry community: Pashan Shala is an Alternative Innovative educational programme for the Children & Childlabourers of Stone Quarry Workers community: • • • • • •

Community Health Service Women's Empowerment, Women's Credit Co-Operative Society Youth Development Legal Aid Study And Documentations & Organization Of Stone Quarry Worker's Organization.

SANTULAN’s SPECIFIC INTERVENTION ON MINING DEVELOPMENT FUND The case study of SANTULAN how it has set up a demand on the State Government for: a. Workers to get representation at MDF Sate & district level committees b. Minimum of 50% MDF to be allotted towards worker welfare and systematically addressing the use of these funds for the welfare of mine workers and their surroundings. The `No Water’ policies of the mine owners and the absence of effective measures by the state makes Water as an important issue of Mining Workers. In accordance to the ‘National Mining Policy 1993’ the Government of Maharashtra came up with State Mining Policy 1999 which was made public on 05.02.2000. Government of Maharashtra based on the above policy passed the following important Governement Resolution making financial provisions of ‘Maharashtra Mining Development Fund’ (MDF) for the mining affected areas: includes ROAD, DRINKING WATER, HEALTH SERVICES, ELECTRICITY & ENVIRONMENT, (GR: MDF-1002/P.No. - 55, Industy-9, Mantralya, Mumbai-400, Dated 26th August 2002.) While battling on various fundamental issues of stone quarry workers such as right to education, right to ration cards & public food distribution system, right to vote, right to heath, right to housing, right to Social Security, right to legal protections, ‘Right to Safe Drinking Water’ emerged as one of the serious issues fased by over 1000 stone quarry workers families in Wagholi stone quarry cluster in Pune, Maharashtra. Under the MMDF provisions made by the Government of Maharashtra for the first time in the history of Stone quarry Workers Community a demand for Drinking Water Scheme to Stone Quarry Workers at Wagholi, Pune was made by Santulan to the District Collector on 22/12/2003. On the basis of the demand the Executive Engineer for Public Water Supply Dept. prepared a scheme titled ’Construction of Public Water Scheme at Wagholi for Quarry Labour Taluka Haweli Dt. Pune’ with the population of 3485 x 40 LPCD = 1,39,400 litters water per day, costing Rs. 32,58,812/-only and was send on 12/4/2004 Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

to the Managing Director, Maharashtra State Mining Corporation (MSMC) Ltd. , Nagpur10 for sanction under MDF. On 6/5/2004 MSMC office returns the proposal to District Collector of Pune for lack of Technical Sanction & Certificate from the District Mining Officer with a requeast to send it back on priority basis for tabling it to the coming MDF meeting On 19/8/2004 MDF meeting was held and since the water proposal had not reached the MSMC the MDF Committee decided to allot over Rs.284.53 lacks while in hand Rs. 158.97 till 2002-2003for the repairs of Roads only. This means the remaining amounts of Rs. 125.56 lacks will be recovered from following years leaving no chance for any other project in the next minimum of three years. On 22/1/2005 Santulan issued a legal notice U/s 80 CPC to Secretary to the Mining Minister, Mumbai, Managing Director, Nagpur, Additional Collector, Pune, Executive Engineer & DMO, Pune demanding for ( 1) Not to release the sanctioned budget for roads until the water schemes is implemented. (2) Action to be initiated against officers responsible. On 29/4/2005 Stone Quarry Workers organized firs road show in the form of a huge Rally to the District Collector of Pune demanding for basic Rights and Amenities. Public Interest Litigation (PIL) filed in the High Court, Mumbai In the month of April 2005 Santulan filed a Public Interest Litigation Numbering 47/2005 in the High Court, Mumbai. PIL Judgment - on 10/10/2005 the High Court, Mumbai Directed the State Government of Maharashtra “… to complete the Public Water Scheme at Wagholi for Quarry Labour Taluka Haweli Dt. Pune’ within four months”. Water scheme for stone quarry workers Completed: As per the orders the Government received the approval on 19/11/2005 and began the workers on 31/1/2006 and completes the project by 30/5/2006. Water Scheme is completed.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

4.0

CONCLUSIONS AND WAY AHEAD

The National Mining Policy, which is being much talked about, does not even mention about this sector, which involves a vast magnitude of people directly involved in the minor mineral sector. The situation in the states and the specific sites demand much greater emphasis on their rights and enabling establishment of mechanisms for ensuring compliance. The experience of different Organisations and Communities indicate that a persistent set of efforts are required whether to establish a new practice or to change existing practices of the government in terms of its compliance mechanisms. We identify the following tasks for further action 4.1 Legal Assessment • • •

Several concurrent acts should also be studied particularly the Labour Laws and the recent efforts on Unorganised Sector Social Security Bill Strengthening of the knowledge base created by the present effort to identify specific case-laws and how they could aid further public petitions. Consultation on how to expand the exercise to all States where MMCR has been enacted

4.2 Research • • •

Need for more expansive efforts on detailing case situations Develop methods for generating empirical evidence on mining conditions Creating database of minor minerals from State sources and verification with specific situation

4.3 Skills Exchange • • •

Periodic Exchange visits of community leaders and supporting professionals between different groups Documentation of high and low moments in the process of achieving specific results Creation of communication materials relevant to each others members

4.4 Advocacy • • •

Continue to strengthen the existing advocacy activities of various groups Develop a strategy and time bound programme to bring up the issue for national debate Develop State-wide strategy and Action Plan to ensure implementation of specific provisions.

A final presentation of this study with discussions on these aspects will enable drawing up a programme which will strengthen efforts in the specific sites and provide the alliance with tools for rapid expansion in all states to secure matching benefits.

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

Annexure

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Environics Trust, 2007

% % %

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Minor Mineral Concession Rules in Select States of India

lalk/kuksa ds uke

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Environics Trust, 2007

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Minor Mineral Concession Rules in Select States of India

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;fn gkWa rks fdrus :i;s dVrs gSa -

15- [kku ij feyus okyh lqfo/kk,sa ¼ dk fu'kku yxkbZ;s½ i`Fkd 'kkSpky; Nk;knkj LFkku ihus dk ikuh cPpksa ds fy, ikyuk?kj 16- LokLF; lEcU/kh lqpuk 15-1 D;k vkidks dksbZ jksx gSa %gkWa @ ugha gkWa rks D;k-----------------------------------15-2 [kku ij vU; D;k leL;k,sa vkrh gSa 15-3 [kku ij lqj{kk ds D;k lk/ku feyrs gSa % 15-4 [kku ij izkFkfed fpfdRlk dh D;k O;oLFkk gSa 15-5 [kku okys esMhdy dk [kpkZ nsrs gSa 15-6 nq?kZVuk,sa gksrh gSa 15-7 nq?kZVuk gksus dk D;k dkj.k gSa 15-8 nq?kZVuk gksus ij [kku okys D;k ,D'ku ysrs gSa 15-9 fdrus ij le>kSrk gksrk gSa % 16- vU; lqpuk,sa 16-1 Je fufj{kd vkrs gSa gkWa @ ugha vafre ckj dc vk;s Fksa----------------------

ikVZ % ch 1- {kS= esa dqy fdruh [knkusa % 2- [knkuksa dk C;kSjk Environics Trust, 2007

;fn

% % % % %

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Minor Mineral Concession Rules in Select States of India

[knku dk yht uke u-

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[kku ij [kuu~ dk etnwjh ¼:-½ dqy isM le; iq:"kksa L=h;ksa dks dks

Environics Trust, 2007

Minor Mineral Concession Rules in Select States of India

4- dqy xkWao tgkWa ls [knkuksa esa etnwj vkrs gSa 5- xkWaoksa ds uke %

Environics Trust, 2007

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Minor Mineral Concession Rules in Select States of India

Environics Trust, 2007

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