This unpleasant reality cannot be hidden by the policy-makers' 'pleasant surprise' and euphoria over the growth of the economy in the second quarter (July-September) at 7.9 per cent, faster than even the most optimistic calculations.

The second quarter growth, for instance, was driven by the strong performance of the mining and quarrying sector which was up by 9.5 per cent as against only 3.7 per cent of last year. The role of some well-connected operators in this sector in States like Karnataka, Andhra Pradesh and Orissa has been the focus of public attention and is not unknown to the Central Government. The coal industry falling under the nationalised sector is probably marginally included in this growth calculations.

Before going into the ongoing controversy over the loot of the mining and quarrying sector, it may be mentioned that the 7.9 per cent growth also included a strong performance of the manufacturing sector, which recorded a growth of 9. 2 per cent compared to 5.1 per cent last year and 12.7 per cent growth in the Social and Personal Services Sector. Stimulus packages running into crores of rupees mainly contributed to the corporate manufacturing sector. Unfortunately, agriculture and allied activities showed growth of a mere 0.9 per cent, down from 2.7 per cent last year and 2.4 per cent the year before. Bulk of the country's working population, small and marginal farmers and agricultural workers survive on this sector. It is this sector in which farmers have been and are still committing suicides due to the debt burden.

Now a look into the loot of the mining sector. The extent of illegal mining in States can be gauged from the fact that, with the Bellary illegal mining hogging national attention, Union Minister of Mines, B. K. Handique had to write a letter to individual chief ministers, protesting against their inaction over illegal mining and sought their “personal intervention” to ensure effective control and supervision of the mining sector in the States. The Ministry is reported to have also discussed with the Planning Commission ways and means of curbing illegal mining in States.

In his letter to the Chief Ministers, the Union Mines Minister is reported to have stressed that the “Central Advisory” had become necessary because “recent events in various parts of the country had led to a virtual loss of credibility in the management of this sector.” Moreover, this was not the first Central Advisory to the States. The Minister was pained to point out that even after repeated advisories and offer of support of the Central Government, ”there is not enough response from the State Governments.”

Former CM of Andhra Pradesh and Telugu Desam Party (TDP) chief Chandrababu Naidu has been campaigning to rally the Opposition to, as he puts it, protect the country's mining wealth from the powerful Reddy brothers of Karnataka - Revenue Minister Karunakara Reddy and Tourism Minister Janardhana Reddy

In an interview to The Hindu, Naidu said he had been raising this issue for the last five years but the then YSR Government refused to take action. “Instead, they patronized the mining lobby. Even in Khammam district, 1.5 lakh acres of mining area have been given to(a close relative of YSR). Nowhere nobody could give so much land. Countries preserve iron ore, bauxite, granite for future generations. China and the United States are importing such minerals while preserving their own mineral wealth for future. For this, there is a good demand and prices are very high. The mineral mafia wants to exploit it.” (1.12.2009).

Naidu alleged that even the late YSR's son, Jaganmohan was involved with the mineral mafia. And as proof of this, he quoted the findings of the Central Empowered Committee (CEC) on Obulapuram Mining Company (Pvt) Limited (OMC), which was appointed by the Supreme Court. The CEC in its report on November 19, 2009, clearly stated that Janardhana Reddy, MD of OMC, was involved in a business partnership with Jaganmohan Reddy, he said. He quoted the report: “OMC has encroached in mineral-rich areas outside their mining leases and is carrying out large-scale illegal mining in unallotted reserve forest areas.” If the present AP Chief Minister K. Rosaiah has taken action against OMC, it is only after a series of stirs by the Opposition, he said.

The mineral mafia exploits not only natural resources but also human resources of the country; without the latter it is not possible to exploit the former. Under the LPG regime, exploitation of both resources are considered normal for growth. The LPG policy-makers believe workers should not be concerned with the nation's natural resources; they treat workers as only wage-slaves.

In the seventies when the Coal Industry faced a similar butchery of coal mines by the coal mafia, the then Coal and Mines Minister Mohan Kumaramangalam resorted to nationalisation of the country's Coal Mining sector. The entire Government under Indira Gandhi was united on this issue because the Coal Industry was the key source of energy then.

Mr. Kumaramangalam, at the same time, thought it necessary to rally the support of the organised labour to make Coal Nationalisation a success, though it was quite time-consuming and required patience on his part to rally the labour as well. He spent months to negotiate with the trade unions, and eventually brought together coal managements and trade union leaders in a Joint Coal Wage Negotiating Committee to evolve a wage settlement with provisions for development of coal production also. A procedure was laid down for the Joint Committee to meet every five years to negotiate wages; this was steadily adopted in all public sector enterprises.

If the Centre keeps sending only Advisories to the States, it won't stop the continuing butchery of mining and mineral resources and exploitation of labour. The all-inclusive ongoing joint trade union movement, which is going to hold dharnas in State capitals and in Delhi on December 16, 2009 against the Government's economic policies, should raise its effective voice against the butchery of the Mines and Minerals sector by mafias. It has to be a part of their long battle for defending the honour of the country's labour and nation's mineral resources. (IPA Service)