Paswan, Ola locked in a turf war

He has claimed that the GoM had agreed not to ban or cap exports of iron ore but regulate it through fiscal measures. However, the Mines’ proposal to the Cabinet recommends toeing Hoda Committee’s suggestion of retaining export duty only on high grade iron ore.

“Hoda Committee has recommended levy of duty on export of iron ore in lump form with ferrous content above 65 per cent only. If the Cabinet accepts the recommendation of the GoM as recorded in the minutes, even the existing export duty on all grades of iron ore, including fines, would be contrary to the Cabinet decision,” cautions Paswan.

“In fact, GoM did not accept the recommendation of the Hoda Committee in this regard. This position requires correction,” says his letter dated November 23, a copy of which has been forwarded to the Prime Minister’s Office.

Paswan has alleged that the GoM had agreed on inclusion of an official from his ministry in the committee that would expedite grant of mining concessions. “The point had been accepted in the meeting but somehow the minutes of the GoM do not reflect this at all,” he wrote.

At the GoM meeting on July 6, the Mines Ministry had declined inclusion of Paswan’s man in the coordination-cum-empowered committee on the ground that presence of user ministry would “hit conflict of interest and the arms length principle”.

But Paswan claims that the GoM agreed with his counter that by the same logic, Mines officials should not chair the committee as the ministry dealt with aluminum. Moreover, his example of Coal Ministry associating user ministries of Power, Steel and Industrial Development had swayed the GoM opinion to his side, he asserts.

The Cabinet proposal, he says, maintains silence on inclusion of his officials in the drafting of the mechanism for auctioning government-explored mining blocks to companies that would set up downstream value addition projects.

“Since in minerals such as iron ore, Ministry of Steel has a substantial stake, I had mentioned in the GoM meeting that the drafting should be done jointly by Mines and Steel. This position has not been reflected in the minutes,” he contends, seeking his ministry’s association in framing auction rules for iron, chrome and manganese ores.

The NMP, which aims to attract investment and technology in mining sector, was first placed before the Cabinet on November 15 but has been kept in abeyance since then as Ola has been unwell and not attending the meeting.