Published on Nov 6, 2010
Economic Growth in India is not inclusive. We have analyzed the situation of mining sector and social issues related to this sector in eastern part of India. There are many instances where you can see the presence of mining company in Jharkhand, Orissa and West Bengal which have registered office and corporate office in places like Mumbai, Delhi, Bangalore and London etc etc. The CEO’s and top executives of these companies have offices in Mumbai, Kolkata and Delhi where they are being paid more than $40,000 per month or (Rs 1.6 milliion / 16 lakh Rs per month). While on the other hand people who are displaced from their farm land back in Natural Resource region are hardly able to earn $1 (Rs 45) per day to cover their food expenses. The compensation for displacement is so less that they leave alone buying a new land; it is not even enough for renting a room for 3 days in smallest village.
Pertaining to this sector, one way to AVOID improper distribution of wealth and exploitation of Natural resources is by decentralizing the company which is seeking mining rights in any part of India. For e.g. Any company who is seeking mining rights in Jharkhand, Orissa and West Bengal must incorporate another company in respective state and have registered and corporate office sitting there.
This way the revenue will be directly reflected in State GDP. The company can efficiently implement their Corporate Social Responsibility to formulate Social and Health Policy for the displaced of the region and people who are affected due to pollution etc. This way the revenue will also remain in the region.