Resolving impasse on iron ore, coal mining tops FinMin’s 10-point plan

Resolving the judicial impasse on iron ore and coal mining is one of the 10 steps the Government will undertake in the coming weeks to strengthen the economy.

Finance Minister P. Chidambaram’s 10-point action plan includes a commitment to keep the fiscal deficit for the current fiscal at 4.8 per cent of GDP, contain the current account deficit at $70 billion, capitalise public sector banks, quicken the capex programme of public sector enterprises, re-think the food bounty of the monsoon, as also encourage exports and manufacturing sector.

Replying to a discussion in the Lok Sabha on the current economic situation, the Minister sought support of Members of Parliament to resolve the “impasse” caused by judicial intervention in coal and iron-ore mining that is seen holding up projects.

The impasse relating to “coal, iron ore, environment and land acquisition issues” is going to affect “any government in the future,” Chidambaram said . “We have to find a way to resolve this impasse,” he said.

Chidambaram made a specific reference to the Supreme Court-appointed Central Empowered Committee on whose recommendation significant curbs have been imposed on mining activity in States such as Goa and Karnataka.

Chidambaram said that it was getting difficult for the Government to go before the committee for every single clearance. The Finance Minister concurred with the remark of an MP that judicial intervention should not lead to a blanket ban, but must focus only on the areas where irregularities have been detected.

“If irregularities are in certain blocks, why stop new blocks from being auctioned?” Chidambaram said.

ECONOMIC SCENE

In the discussion on the economic situation, the ruling UPA combine came in for a scathing attack from the Opposition for mismanaging the economy.

The Opposition leaders slammed the Government for its reckless economic policies, which they said had created this “gloom and doom” situation.

BJP leader Yashwant Sinha said the UPA Government has lost control over the economy and, therefore, it must go.

ALL OPTIONS OPEN

To a question from Sinha on whether a sovereign bond issue was being contemplated to help finance the CAD, Chidambaram said all options (FDI, NRI, ECB) to finance the deficit were on the table.

“I cannot open a debate on sovereign bonds now. All options are on the table. Which option is a judgment call of the Government. If that requires consultation, we will look at it. I have taken note of what you (Sinha) have said,” Chidambaram said without delving into the issue.