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Mining ban: Household incomes fall by half in 5 states, says report

According to the report titled ‘Mining, A Prudent Perspective’, conducted by the Forum for Integrated Development and Research (FIDR), the ban on mining has not only affected the families dependent on mining but also the families whose livelihoods are dependent on the ancillaries of the mining industry.

ET Bureau|
Last Updated: Jan 23, 2020, 02.38 PM IST
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Mining ban
In Goa, stoppage of iron ore mining has impacted revenues worth Rs 3,400 crore, which has been acknowledged by the state government, the report said.
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Household incomes have fallen by more than half after the mining ban in states like Goa, Chhattisgarh, Jharkhand, Odisha, and Karnataka, says a report.

According to the report titled ‘Mining, A Prudent Perspective’, conducted by the Forum for Integrated Development and Research (FIDR), the ban on mining has not only affected the families dependent on mining but also the families whose livelihoods are dependent on the ancillaries of the mining industry.

“With the household incomes depleted by more than half after the mining ban, the incidences of domestic violence have increased due to the joblessness and financial crunch to run families. The women and children are the worst sufferers due to the policy decisions to ban mining,” said the report, which surveyed 2,415 people in 13 districts across five states.

The statement adds that about 70 per cent of those surveyed felt that mining had helped create jobs for them in the first place. Today, these jobs have vanished. About 65 per cent of the respondents expressed that their family lives are under severe strain and is further getting destroyed due to indebtedness, bankruptcy, violence from moneylenders, drinking and other social vices. About 27 per cent of respondents stated that mental instabilities have increased due to livelihood stress. This response came with the highest numbers in Goa.

“The negative economic impact of a continued ban / stoppage on mining activities or trade barriers in the various states (like the ones cited in the report) would be a large ticket for the economy to absorb at this stage, when investors' sentiment is already weak, and the global conditions are unstable. The issues plaguing the mining industry in the country, if continued, will bring the Indian economy to the edge of an avoidable precipice,” Charudutta Panigrahi, Mentor, FIDR, was quoted in the statement.

The survey of FIDR indicates that in the five states, mining contributes to over 12% (on an average) of the state GDP. The closure of mines has dimmed the chances of the states to contribute to the vision of 5 trillion dollar economy of India.

In Goa, stoppage of iron ore mining has impacted revenues worth Rs 3,400 crore, which has been acknowledged by the state government, the report said. Goa is at present facing a volatile situation with more than 300,000 livelihoods at peril and with no signs of recovery.

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