Skip to main content

Influence of mining corporations on policy makers 'leading to' erosion of democracy in Odisha

By Bhabani Shankar Nayak*
 Odisha is rich in high-quality natural resources, including iron, bauxite, chromite, and manganese ore, as well as a variety of other valuable minerals like coal, limestone, dolomite, tin, nickel, vanadium, lead, graphite, gold, and gemstones. This resource-laden state is responsible for 57% of India’s iron ore production, hosting over 60 operational mines and more than 150 square kilometers under exploration for further mineral deposits. 
Unfortunately, the local population does not share in the benefits of these vast natural resources; instead, many of the poorest communities reside in the very regions that are rich in minerals. This situation underscores the severe disparity in wealth distribution stemming from these natural assets, creating a "paradox of plenty" that perpetuates poverty and hunger, both of which are frequently reported at national and international levels. 
Since gaining independence, Odisha has favored a pro-business approach alongside mining-led industrialization. Various political parties, including the Congress, Swatantra Party, Janata Dal, Janata Party, Biju Janata Dal (BJD), and Bharatiya Janata Party (BJP), have consistently supported mining corporations under the guise of promoting economic growth. Sadly, rather than foster equitable economic development, this has resulted in mining corporations undermining democratic processes and transforming the resource-rich state into one suffering from a resource curse. 
The rent-seeking behavior of the Odisha government has not only stalled economic or human development but has also fortified the influence of caste, class, and elite groups, allowing them to maintain control over resources and governance. This has fostered a neopatrimonial relationship characterized by the collusion of the state, government, and mining entities, thereby cementing the power of these corporations at the expense of fair development. 
Consequently, mining corporations exert significant control over democracy in Odisha, contributing to ongoing political and economic crises for the state's residents. The "Performance Audit of Systems and Controls in Assessment and Collection of Revenue from Major Minerals for the Year Ended March 2022 (Report No. 6 of 2024)" by the Comptroller and Auditor General of India (CAG) reveals that the state has facilitated mining corporations' interests, leading to severe losses in mining revenue. 
The state treasury has suffered tremendously due to the undervaluation of mineral ores by the Odisha government. This excessive support for private mining enterprises has been accompanied by significant political contributions, with mining corporations in Odisha donating ₹601 crore in electoral bonds to various political parties. Major political players, including the BJD, BJP, and Congress, have all benefited from these contributions, with the BJD receiving ₹453 crore and the BJP receiving ₹145 crore from just six active mining companies. 
Who is concerned about the ₹22,392 crore loss in mining revenue to the Odisha treasury? Who is addressing the ₹10,294 crore lost due to ore undervaluation? Who prioritizes the welfare of the people and environment in Odisha's mining regions? Mainstream political parties, mining companies, and ruling and opposition elites collaborate to safeguard their mutual interests, while ordinary citizens in Odisha endure ongoing unemployment, poverty, hunger, underdevelopment, and health issues. 
Successive governments have provided uninterrupted support to mining firms and extractive industries, operating under the assumption that governance is intended to serve these corporations rather than the people of Odisha. This collusion not only erodes democracy but also undermines the essential conditions for genuine democratic governance within the state. 
Both the ruling and opposition parties benefit from political donations which bolster mining interests
The intertwining of mining corporations with politics is eroding democratic institutions in Odisha. Both the ruling and opposition parties benefit from political donations which bolster mining interests. This crony capitalism, driven by mining companies, has detrimental impacts on the state’s economy, environment, and democratic integrity. While the BJP recently unseated the BJD after more than two decades in power, their policies regarding mining are strikingly similar. 
Both parties demonstrate an unwavering commitment to the interests of mining corporations. Newly appointed Chief Minister Mr. Mohan Charan Majhi, despite hailing from a tribal background, appears unfazed by the displacement of tribal communities due to mining, actively facilitating the transfer of forest land and tribal territories to mining operations without hesitation. 
Political leaders across the spectrum are influenced by mining corporations, which establish a foundation for pro-mining stances through regular financial incentives, regardless of party affiliation. In Odisha, mining has become a risk-free endeavor, undeterred by regulation. Protecting land and natural resources, as well as the livelihoods that depend on them, is vital for peace and prosperity in the state. 
History demonstrates that mining-led industrial growth does not eradicate poverty or hunger. Instead, fostering cooperative and equitable management of natural resources can significantly alleviate these issues in Odisha. In light of this, the people of Odisha must advocate for a new political paradigm that positions them as stakeholders and custodians of the state's mineral wealth. 
The initial step involves mobilizing the workforce to challenge mining corporations and dismantle their political influence. Advocating for radical alternative politics in Odisha necessitates policies that promote equitable resource distribution while emphasizing principles of equality, justice, and liberty as enshrined in the Indian Constitution.
---
*Scholar based in UK 

Comments

TRENDING

70,000 migrants, sold on Canadian dream, face uncertain future: Canada reinvents the xenophobic wheel

By Saurav Sarkar*  Bikram Singh is running out of time on his post-study work visa in Canada. Singh is one of about 70,000 migrants who were sold on the Canadian dream of eventually making the country their home but now face an uncertain future with their work permits set to expire by December 2024. They came from places like India, China, and the Philippines, and sold their land and belongings in their home countries, took out loans, or made other enormous commitments to get themselves to Canada.

Kerala government data implicates the Covid vaccines for excess deaths

By Bhaskaran Raman*  On 03 Dec 2024, Mr Unnikrishnan of the Indian Express had written an article titled: “Kerala govt data busts vaccine death myth; no rise in mortality post-Covid”. It claims “no significant change in the death rate in the 35-44 age group between 2019 and 2023”. However, the claim is obviously wrong, even to a casual observer, as per the same data which the article presents, as explained below.

PM-JUGA: Support to states and gram sabhas for the FRA implementation and preparation and execution of CFR management plan

By Dr. Manohar Chauhan*  (Over the period, under 275(1), Ministry of Tribal Affairs has provided fund to the states for FRA implementation. Besides, some states like Odisha, Chhattisgarh and Maharashtra allocated special fund for FRA implementation. Now PM-JUDA under “Dharti Aaba Janjatiya Gram Utkarsh Abhiyan(DAJGUA) lunched by Prime Minister on 2nd October 2024 will not only be the major source of funding from MoTA to the States/UTs, but also will be the major support to the Gram sabha for the preparation and execution of CFR management Plan).

Operation Kagar represents Indian state's intensified attempt to extinguish Maoism: Resistance continues

By Harsh Thakor Operation Kagar represents the Indian state's intensified attempt to extinguish Maoism, which claims to embody the struggles and aspirations of Adivasis. Criminalized by the state, the Maoists have been portrayed as a threat, with Operation Kagar deploying strategies that jeopardize their activities. This operation weaves together economic, cultural, and political motives, allegedly with drone attacks on Adivasi homes.

How Amit Shah's statement on Ambedkar reflects frustration of those uncomfortable with Dalit assertion, empowerment

By Vidya Bhushan Rawat*  Dr. B.R. Ambedkar remains the liberator and emancipator of India’s oppressed communities. However, attempts to box him between two Brahmanical political parties betray a superficial and self-serving understanding of his legacy. The statement by Union Home Minister Amit Shah in the Rajya Sabha was highly objectionable, reflecting the frustration of those uncomfortable with Dalit assertion and empowerment.

This book delves deep into Maoism's historical, social, and political dimensions in India

By Harsh Thakor*  "Storming the Gates of Heaven" by Amit Bhattacharya is a comprehensive study of the Indian Maoist movement. Bhattacharya examines the movement's evolution, drawing from numerous sources and showcasing his unwavering support for Charu Mazumdar's path and practice. The book, published in 2016, delves deeply into the movement's historical, social, and political dimensions.

Ideological assault on dargah of Sufi Saint Khwaja Moinuddin Chishti will disturb pluralistic legacy: Modi told

Counterview Desk Letter to the Prime Minister about "a matter of the utmost concern affecting our country's social fabric": *** We are a group of independent citizens who over the past few years have made efforts to improve the deteriorating communal relations in the country. It is abundantly clear that over the last decade relations between communities, particularly Hindus and Muslims, and to an extent Christians are extremely strained leaving these latter two communities in extreme anxiety and insecurity.

Defeat of martial law: Has the decisive moment for change come in South Korea?

By Steven Lee  Late at night on December 3, soldiers stormed into South Korea’s National Assembly in armored vehicles and combat helicopters. Assembly staff desperately blocked their assault with fire extinguishers and barricades. South Korea’s President Yoon Suk Yeol had just declared martial law to “ eliminate ‘anti-state’ forces .”