Key Note Address II  

The Political Economy of Mining Industry in India

And The Dynamics of Peoples’ Resistance

By J John[7]

In the very outset, let me thank the organisers of mines minerals & People (mm&P) for giving me this opportunity to deliver the keynote address at the first national convention of the organisation. I consider the occasion historic and the opportunity a great personal privilege. I am neither an academic or technical expert well versed with issues of mining nor an activist with direct experience in organising people or workers. Nevertheless, the confidence shown by the organisers in entrusting me with this solemn responsibility has given a lot of strength to look at issues objectively. With this brief introductory digression, let me come to the topic.

Mines Minerals & People - is a beautiful formulation. It gives us the sense of a multitude of meanings and brings forward a sense of inherent dynamism. No, we should not just be satisfied with what immediately appears to our senses. We should understand more of it. What is it? Why has it come in the scene at this moment of history? Who are the actors; not the individuals but the social forces behind its emergence? Does it have a bearing on the political economy of mining? What could it potentially achieve?

Let us embark on a journey to understand the phenomenon of mines minerals & People, for whose first national convention we have assembled here.

However, at the very beginning itself, we are confronted with a problem. What method should we adopt?

According to the Hegelian method of dialectics, first step in knowing a ‘thing’ is to have a hold on the thing. However, ‘thing’ is not stationery; it is in perpetual motion. So to understand a ‘thing’ we have to ‘grasp’ that the ‘thing’ is in ‘motion’.

Mines minerals & People is not an isolated phenomenon. It is part of a process. The process is that of mining. Can we say that at one stage in the process of mining in India, mm&P has emerged. What is the process of mining and at what stage has mm&P appeared?

Can we say that mm&P represents, if not the leap-like inversion, the emergence of a social force intended to break the barrier. A rational justification for the above Statement will become easier, if we identify the ‘presence’ and the raging ‘contradictions’ beneath the surface. This is the task that we would now be engaged in - to identify the ‘presence’ and also of the ‘raging opposites’ beneath the surface.

Development and Mining

There is a close relationship between development and mining. It has also been observed that the structure of economic development and industrial production structure of a country depends to a large extent on ‘the quality, quantity, structure and the geographical distribution of the subsoil resource endowment in a country.’[8] Minerals are considered the mainspring of industrial civilisation.

Indian development planning has accorded great importance to mining in the industrial development and the overall growth of the country. Mining and a  policy on the management of mineral resources were part of India’s industrial policy and initial Five Year Plans. A massive industrialisation programme was carried out in the 1950s and 1960s to enable the industrial sector to fuel development in other sectors. Enormous sums were invested in large projects such as irrigation and power installation, steel plants, and mining projects. Nevertheless, this massive industrialisation did put tremendous pressure on the mineral resources of the country.

Consider these facts: Gross Domestic product at factor cost (at constant prices) increased from 4281 crores in 1950-51 to 1081834 crores (Quick estimates) in 1998-99. During the same period, the food grain production increased from 50.8 million tones to 203 million tones resulting in overflowing godowns. Index of industrial production (Base 1993-94=100) increased from 7.9 to 143.1 during the same period and the index of agricultural production (Base: triennium ending 1981-82) from 46.2 to 177.2.[9]

Comparing the indexes of industrial production and agricultural production during 1960 to 1983, Naganna has observed that the index of all-mineral production has been increasing at faster rates than the other two.[10] He calculates that for every rise of one point in the index of industrial production, there seems to be a rise of somewhere around 1.2 to 1.5 point rise in the index of all-minerals production. It shows that the index of mineral production will have to be maintained at fairly higher levels than that of the industrial production. The difference is due to the process wastes, beneficiation and removal of impurities, and other losses in the weight of raw materials during the production process. The economy has to maintain higher rates of growth persistently in the extractive sector for every envisaged growth rate in GDP in general and industry in particular.

During the initial two to three decades of India’s planned development, the index of all-minerals production also has shown a steady growth. It increased from 57 points in 1960 (Base year 1970=100) to 212 points in 183.[11] The trend continues in the 1990s too. The index (Base year 1980-81) of mineral production reached a level of 268.3 during 1995-96.

The Minerals Yearbook 1997 tells us that the total value of minerals produced in the country works out to Rs 30,745 crore in 1994-95 against Rs 27.040 crore in 1993-94 registering an increase of about 14%. During 1994-95, major contribution came from fuel minerals which accounted for Rs 25,526 crore or 83%.  The significant contributors are petroleum (crude) and natural gas (utilized) which together accounted for Rs 13,435 crore or 44% and coal and lignite Rs 12,091 crore or 39%. The rest was shared by metallic minerals Rs 2,220 crore or 7%, non metallic minerals Rs 1143 crore or 4% and minor minerals Rs 1,856 crore or 6%. The value of fuel minerals increased by 13%, metallic minerals 8%,non metallic minerals 14% and minor minerals 25% compared with the previous year levels.

The relative contribution of mining sector to the GNP of India has increased from 1.2% in 1960 to 5.2% in 1983.[12] We also get information on the mineral-wise contribution (Table2) to the National Income[13] from the Minerals Yearbook 1997. The mining and quarrying sector contributed Rs.19691 crore in 1994-95 compared to Rs.17561 crore in 1993-94, showing an increase of 12%.

Minerals are also a significant foreign exchange earners. In 1996-97 India exported minerals worth Rs.18956.2 crores and it constituted 16.0% of the total export value of all merchandise from India. Diamond is the biggest constituent with a share of 77.57% in the total value of mineral exports followed by iron ore (9.0%), granite (6.0%), aluminia (1.98%) and precious and semi-precious stones 1.83%.

However, it should be understood that rough diamonds are imported into the country and re-exported after processing. And most of India’s foreign trade are in the raw form and as semi-processed forms. During 1995-96, the value of manufactured mineral-based commodities was only Rs.56812 crores constituting only 5.35% of the total value of all merchandise.

We are reminded that India is wholly or largely self-sufficient in 26 minerals which constitute primary mineral raw material for industries such as thermal power generation, iron and steel, Ferro-alloys, aluminium cement various types of refractors, china clay-based ceramics, glass, chemicals like caustic soda, soda ash, calcium carbide  fluorine- based chemicals like aluminimum fluoride, cryolite/chloro-fluro-carbons, titania and white pigment. India is by and large, self-sufficient in coal (with the exception of very low ash coking coal required by the steel plants) and lignite among mineral fuels: bauxite, chromate, iron and manganese ores, ilmenite and rutile among metallic minerals: and almost all the industrial minerals with the exception of chrysotile asbestos, borax, kyanite, potash, rock phosphate and elemental sulfur.[14]

These are all indicators establishing the importance of mining in the economic growth and the development of the country. It is a moment in the process that we are unraveling, which is determinate and objective. We have measured it and quantified. These are basic and important elements in understanding the political economy of mining industry in India. If we intend to work out a strategy without understanding the basic features of the industry, we may not be effective in our intervention.

However, it also manifests the one-sided immediate unity, justified in terms of, to quote a celebrated article by Arundhati Roy, ‘the Greater Common Good’[15]. In the above mentioned article, which deals with Big Dams - ‘the temples of modern India’, she quotes two of India’s greatest political leaders. Those quotes are worth reproducing because those show the authority and high moral ground from which State demands sacrifices from some in the name of public interest.

“If you are to suffer, you should suffer in the interest of the country.”

- Jawaharlal Nehru, speaking to villagers who were to be displaced by the Hirakud Dam, 1948.

“We will request you to move from your houses after the dam comes up. If you move it will be good. Otherwise we shall release the waters and drown you all.”

- Morarji Desai, speaking at a public meeting in the submergence zone of the Pong Dam in 1961.

It indicates the raging contradictions beneath the veneer of the Greater Common Good. What are they? Let us identify three sets of opposites and try to understand their dynamics: first, is germane to the very nature of mining itself, let us call it Extraction vs. Sustainability; second,

Development vs. Displacement; third, Industry vs. Labour.

Extraction vs. Sustainability

We have seen that mining induces industrial growth and in turn is induced by it. However, mining as an industrial activity has characteristics distinct from other industries. The most important among them is the fact that mining involves extraction of non-renewable resources. Minerals are by nature depletable and ‘a tonne extracted is a tonne depleted’.[16] It cannot be replenished. Mining, therefore, is an industrial activity that leads to its own nemesis.

Can mining then be sustainable?[17] The issue of sustainability in mining is addressed by the method of exploration or prospecting, which is a process of searching for and locating new mineral resources hidden under earth’s crust. Unless and until the depleted resources are replenished by new deposits, the mining industry cannot sustain, it will come to a grinding halt.

Exploration therefore, is seen as a precondition for a sustainable mining sector and in turn, a precondition for sustainable development.[18] However, absolute depletability will create a situation when all resources available in the geographical area will be completely exploited. There will be no more area to be explored. The admission of ‘asymptotic limits’[19] to which exploration will reach raises serious questions on the logical consistency of the argument of exploration as a means towards the sustainability of mining.

Management of waste generation and recycling cannot also ensure sustainability of mineral resources, not only because consumerism is the force that drives industrial capitalism but also because intensive consumption of processed resources of developing countries takes place in the developed countries. Western capitalist growth is increasingly recognised as the mainspring of unsustainability. What is happening at the moment is a process of ‘externalising ecology and the environment’ of the developing counties, which amounts to treating Third World rain forests, waters and other ‘public commons’ as free good. Trade and capitalisation, dominated by Western MNC’s, have transferred these undervalued assets to promote consumerism and wealthy concentration in the North.[20]

The non-renewable, location specific and shifting characteristic of mining has also bearing on the organisation of the industry and the method of extraction. In India, two distinct trends are discernible in the size of the industry and the method of extraction. According to the official figures, in 1995-96, there were 3490 mines in India (excluding petroleum and natural gas wells and minor minerals), out of which 563 were in the coal and lignite sector, 654 in metallic minerals sector and 2273 in the non-metallic minerals sector. The figure shows that in the metallic and non-metallic minerals sector, a large number of small mines operate. However the total number of mines are showing consistent reduction in size; 4179 in 1983 to 3840 in 1993-94 to 3490 in 1995-96. This points to a trend in the depletion of resources, and an attempt at consolidation and cost reduction by the industrialists. There is also an increasing trend towards open caste mining from underground mining. The minor minerals sector is overwhelmingly under private benami ownership and small sized.

Mining Towns/Settlements

The unsustainable and exhaustible character of mining industry leaves a shadow on the town or settlement which has come up around the industry. A typical mining town is expected to have four distinct phases in its life-span, namely (a) birth, (b) growth, (c) peak with stability and (d) decline. In normal circumstances, a mining township is destined to die down, when a mining company depletes the mineral resources and go out for a new location. This may result in major social and economic disruption, unless and until deliberate policy measures are not taken to broad base economic activities and sources of employment.

Economic Reforms and Sustainability

Economic reforms, actively perused in our country since 1991 with its emphasis on liberalisation, globalisation and structural adjustment programmes will have profound impact on the mineral resources of our country. It also raises questions on the rate of depletion of our resources and the sovereign right over them. The immediate linkage between mining and industrial policy is again manifested in the way in which our Government brought in changes in the Minerals Policy close on heels with the new industrial policy.

New National Mineral Policy

Management of mineral resources is the responsibility of the Central Government and the State Governments in terms of Entry 54 of the Union List and Entry 23 of the State List of the seventh schedule of the Constitution. The Industrial Policy Resolution, 1956 and The Mines and Minerals (Regulation and Development) Act, 1957 largely lays down the framework for the regulation and the development of all minerals other than petroleum and natural gas. The Mining Concession Rules, 1960 regulates the grant of prospecting licenses and mining leases of all minerals other than atomic and minor minerals. The State Governments have framed rules with regard to minor minerals. The Central Government has framed the Mineral Conservation and Development Rules, 1988 which is applicable to all minerals except coal, atomic minerals and minor minerals. Under Schedule A of the Industrial Policy Resolution, 13 minerals besides coal and lignite were reserved exclusively for the public sector.

The Industrial Policy Resolution, 1956 formed the basis of industrial development in the country for more than three and a half decades. Government initiated a radical shift from the policies and strategies set by the Resolution by introducing a New Industrial Policy in 1991 in tune with its economic reforms programme. Economic reforms have brought in a paradigm shift[21] in the developmental strategies - a shift from Government to markets, public to private sector dominance, State monopoly to market competition and opening its borders for global trade. With their focussed emphasis on liberalisation, privatisation, marketisation and globalisation economic reforms should have definite impacts on the country’s resource base in many and varied ways. The new National Mining Policy, 1993 (applicable to all non-atomic and non-fuel minerals) and the amendment in 1994 of the Mines and Minerals (Regulation and Development) Act, 1957 has to be seen in this context. Let us look at specifically, the changes brought about by the New National Mining Policy.

Important changes in the National Mineral Policy, 1993

1.                  Thirteen minerals viz. Iron ore, manganese, chrome, sulphur, gold, diamond, copper, lead, zinc, molybdenum, tungsten, nickel and platinum group of minerals have been deleted from the list of minerals which had earlier been reserved for exclusive exploitation by the public sector. These minerals are now open for exploitation by the private sector.

2.                  Foreign investment and technology will be encouraged. Ceiling on foreign equity in the mining industry has been raised to 50% in the equity of Indian companies engaged in mining activities.

3.                  Mineral and metal processing units which wish to develop captive mines to secure assured supplies of raw material will also be allowed to foreign equity participation in the manner and to the extent already permitted to such processing units. Equity participation over 50% by foreign parties in non-captive mines can also be considered on a case to case basis.

4.                  States no longer require Central approval for grant of mining or prospecting licenses in the case of 15 minerals: apatite, phosphate ores, barytes, dolomite, gypsem, kyanite, manganesite, molybdenum, nickel, platinum and other precious metals, silimanite and silver, sulphur and its ores, tin, tungsten and vanadium ore.

5.                  The period of prospecting license has been raised from two to three years with a provision for renewal so that the total period does not exceed five years.

6.                  Similarly, the period of mining lease increased to a minimum of 20 years and a maximum of 30 years with provision for renewal for another 20 years.

Even after the announcement of New Mineral Policy, Government continues to liberalise mining provisions. For example, Government extended the area of mineral prospecting from 25 sq. km to 5000 sq. km for a single license and 10000 sq. km for a single Company.

In another significant move, Government amended the Coal Nationalisation Act, 1973, in February 1999, facilitating the entry of private entrepreneurs in coal and lignite production. It may recalled that till then coal had remained the monopoly of the State, barring the exception of a captive coal mine granted to Tata Iron and Steel Company to meet the needs of their steel plant in Jamshedpur.

Besides liberalising procedures, Government has divested its equity holdings in a number of units among which are Neyveli Lignite Corporation (6.01%), NMDC (1.61% of paid up capital involving 21.30 lakh shares), Kudremukh Iron Ore Co. Ltd (1%), Hindustan Copper Ltd. (1.24%), National Aluminium Co. (12.85%) and Hindustan Zinc Ltd. (24.08%).

By April 1999, the Central Government has approved 48 proposals for aerial surveys for over 6700 sq. Km in Rajasthan, Gujarat, UP, Bihar and Maharashtra for high value materials like gold, silver and base metals and nickel.

In tune with the policy, Government liberally approved many a joint venture proposals. In October 1997, MP Government decided on MP State mining corporation to form a joint company with Finders Gold of Australia to develop diamond reserves. Hindustan Zinc Ltd. Entered into a joint venture with BHP Minerals, another Australian company for mineral exploration work in Rajasthan. Orissa Government granted mining lease to Utkal Aluminia International Ltd., a joint venture among Indal, Tata Industries, Hydro Aluminium of Norway and Alcon of Canada, for working in the Baphlimalli bauxite deposits covering 1388.74 hectares in Rayagada and Kalahandi. The State Government has allotted 406 hectares with 16 million tonnes of chromium deposit to TISCO.

The New Mineral Policy augmented by the provisions of New Industrial Policy is bound to increase rate of exploitation of our mineral resources, its export oriented exploitation and its vulnerability to depletion by global mining sharks. It has also given a go-by to the principles of conservation of mineral resources envisaged in the early stages of India’s industrialisation.

Development vs. Displacement

This takes us to the second set of opposites that lies beneath the limits of the Greater Common Good, namely development vs displacement. This formulation implies that development entails involuntary displacement. Or the principle of the Greater Common Good demands that displacement as an unintended, but unavoidable consequence of development should be accepted unquestionably by the victims.

As we have already seen, the planned development through which India sought rapid economic growth entailed large-scale investments in dams, roads, mines, power plants, industrial estates, new cities and other projects involving land acquisition. This has invariably resulted in the large-scale displacement of people from their original habitats to make way for these development projects.

Arundhati Roy calculates those who were displaced by Big Dams to be 33 million. She quotes N C Saxena, Secretary to the Planning Commission, who thought the number of people displaced by development projects in India would be in the region of 50 million.[22]

Displacement is not just a movement of people from one place to the other. It is involuntary and results in the expropriation of the landed assets and common property resources of people. Micheal M Cernea has defined displacement in the following way:

“Displacement implies not only physical eviction from a dwelling, but also the expropriation of productive lands and other assets to make possible an alternative use of the space. This is not just an economic transaction, a simple substitution of property with monetary compensation. Involuntary displacement is a process of unraveling established human collectivities, existing patterns of social organisation, production systems and networks of social services. The concept of displacement also describes situations in which some people are deprived of their productive lands, or of other income-generating assets, without being physically evicted from their houses. Overall, forced displacement of collectivities causes an economic crisis for all or most of those affected, entails sudden social dis-articulation, and sometimes triggers a political crisis as well.”[23]

It has also been observed that displacement consists of two distinct but related processes namely (a) displacement of people and dismantling of their patterns of social and economic organisation, and (b) resettlement at a different location and the reconstruction of their livelihood and social networks.[24]

Irrespective of the fact that whether the development activity is carried out by the Public Sector or the Private Sector, State is the agency that dispossess and impoverishes people. The instrument by which State executes this action is the Land Acquisition Act, 1894. The precursor to the LAA had been the Bengal Code of 1824, which was primarily intended to enable the East India Company to procure land for roads, canals and other public purposes. ‘Public Purpose’ and ‘Eminent Domain’ are the two concepts by which LAA provides unlimited powers to the State to acquire land.

The concept ‘public purpose’ has not been defined in the LAA, but it reasons that State will have to act to protect, and advance, generally, the interest of the people. It is also understood as in general interest of the society as opposed to the interest of an individual. In the LAA, ‘public purpose’ is used in synonymous with a ‘Company’. This ill-defined concept, practically, gives unlimited powers to the State to determine what constitutes public purpose.

The doctrine of ‘Eminent Domain’ establishes the supreme right of the State over not only land, but also natural resources. The power of eminent domain has been described as the ‘highest and most exact idea of property remaining in the Government, of in the aggregate body of the people in their sovereign capacity.’[25]

Strangely enough, law is incapable of dealing with cases of mass displacement. Law concerns with the rights of individuals whose lands are to be acquired. Breakdown of communities and mass displacement are not within this recognition. Consequently, law on compensation is also not sensitive to the displacement of communities, or large numbers of people. This results in denial justice to those who are displaced by developmental projects in communities and large numbers. Usually, Tribals and Dalits are the victims of this mis-carriage of justice.

While categorising development projects into three, Parasuraman points out that in industrial, power, mining and port projects, displacement continues even after the completion of the project, even though in the initial stages, the displacement would not be large. An industrial or mining city attracts more people over a period of time because new economic activities may pick up around the main project. For residential purposes, Government may acquire surrounding agricultural land at a later stage.

He illustrates the argument with the case of The Bolani Iron Ore Mines, owned by the SAIL, located in the Keonjhar district of Orissa, bordering on Bihar. The Bolani mines were explored in the 1930s, and full-scale operation commenced in the early 1960s. Like all other mines in Orissa, Bihar and West Bengal, they displaced primarily the Tribal population. Pp54 Let me quote extensively from the text:

“Prior to 1950, Bolani was a small village which, together with the adjoining villages Balagoda and Champua, had 800 inhabitants, according to the 1951 census. In 1961 the population of these villages had more than doubled, to 1780 and by 1971 the population had increased to 7277. In 1981, when Bolani and Balagoda merged with the new SAIL township, the population was 9575. Subsequeltnly, when a hamlet of Bolani and the Camp of Bolani - which had originally been excluded -  were add to the new town, the total population of the three villages rose to 11591.

... In 1990, the population of Bolani included four groups of people: descendants of the original inhabitants (1308), migrants belonging to Tribal groups similar to those in the original villages (2646), Tribal and non-Tribal migrants from UP, Bihar and other parts of Orissa, who settled in autonomous colonies throughout Bolani (9885) and SAIL employees (5705) in the SAIL housing colony. Pp133

... Mining has been beneficial to the country at large, but it has adversely affected the Tribal people living in the Bolani area, and has caused damage to the forest and to the river. The Tribal people have been deprived of many of their resources: the land, the forest and the river. In the long run, this will threaten the resources of the country as a whole. If the current deforestation continues, the scattered pockets of bare patches in the midst of densely forested areas will become widespread throughout the forest belt of Orissa and Bihar.

The indigenous Tribal people have not benefited from the transition from subsistence agriculture to mine-related employment. These people were least prepared to shift from subsistence cultivation, which demanded hard labour throughout the year. The Tribal people required training and mental preparation to adapt to the new work environment, but the Bolani mines made no effort to improve the skills of the hand-miners. Instead, the mine authorities effectively segregated the Tribal people from the non-Tribal workers and eventually excluded them from mining employment. Most Tribal workers employed as hand-miners are being forced to retire, while it is impossible for their children to find employment in the mines, as they are unskilled. Until recently, hand-miners were treated as contract workers. Thus, they can never hope to live in the Company township. Schools and health facilities are almost always located in or near the Company township.

Mining activities have divided the Tribal people into a number of different groups: permanent, piece-wage and contract workers in mines, casual wage labourers in mine related activities, cultivators, families dependent on the sale of wood, and so on. By displacing people from land and aggravating land alienation, the mines have helped to create an army of unskilled, cheap labour. The immigration from Orissa and Bihar, of Tribal and lower caste peasants has further increased the availability of unskilled labour.

Women in general did not benefit from the mining activities. Employment in the State-owned mining sector could not provide employment for women. Women seeking employment can find work as hand-miners in private firms, but they to face competition in the labour market and are paid low wages.”

Displacement means impoverishment; benefits of development hardly reaches the displaced. Even when symbolic absorption takes pace in the industrial activity, it more as a tactics for containment of resistance or forced segmentation of labour.

Industry vs. Worker

This takes us to the third set of opposites, Industry vs worker, concealed under the doctrine of the Greater Common Good. Where does we posits mine workers? Consider the fact that Coal sector alone employs 8,54,068 workers. Much more should be employed by private companies engaged in the mining of minor minerals. Who are these workers? Are their rights protected? Do the mining companies show any responsibility to them beyond the excavation period?

Mines are among the earliest Industrial occupations in India. Dilip Simeon makes an interesting articulation of this coming into being of the early industries and the working class. “The emergence of modern society has been a process of gigantic social disruption, without which the construction of industrial capitalism would have been unthinkable. Emplacement follows upon displacement, ordering is really a disordering. Modern workplaces, such as steel cities and coal mines, are founded upon the existence of uprooted people. The places whence the workers came were rich in symbolic ordinates, but the chief characteristic of the new place they occupied was subordination - a condition requiring the acceptance of drudgery and humiliation.”[26]

The above articulation flows from our earlier discussion of displacement. But adds that the new occupants of the spaces forcefully created by an industrial establishment are occupying the space in subordination, drudgery and humiliation. Another set of opposites emerge, that of capital and labour.

Dilip Simeon tells us the story of the Tata Iron and Steel Company (TISCO) at Jamshedpur. Its construction  began in 1907, and the first pir-iron was rolled in 1911. In twenty years, TISCO acquired 20 square miles of land in the east of Singhbhum district under zamindary right and increased steel production from 3000 tons in 1911 to 4,29,000 tonnes in 1928, and 800,000 tonnes in 1939. TISCO’s workforce increased from 4,000 in 1907 to 30,135 in 1923-24 after which the management was seized of the problem of reduction. (pp13)

The population of Jamshedpur, 5672 in 1911, grew to 57,000 in 1921, 84,000 in 1931 and over 200,000 in 1951.... For a long time the city had no municipal governance. TISCO’s de facto administration was legalised in 1923 through the  constitution of a Notified Area Committee. Both before and after 1923 municipal services in the town were undertaken by TISCO and the allied companies. Tatas had constructed 5483 quarters by 1931, by which time there were also 8150 dwellings built by their employees. These figures had risen to 6284 and c. 11000 quarters and dwellings in 1938, which, according to management, accommodated c. 70% of its workforce.” (pp14-15).

In 1929 the steel plant employed about 5000 unskilled and 17,500 skilled and semi-skilled workers. Skilled workers operated cranes, machine tools, sheet and rolling mills etc., and were employed in tasks such as fitting, turning, electrical maintenance, smelting, and engine driving. Semi-skilled workers included boilermen, khalasis (apprentices), hammermen, firmen, bricklayers, packers, furnacemen, straignteners etc. The unskilled workers performed the worst paid hard labour. The usual parlance for them was ‘coolies and rezas’ (female coolies). (pp21)

In 1921, over half the skilled workers in Jamshedpur were immigrants from outside the province; and many of the semi-skilled workers came from Orissa and Madras. Nearly half the unskilled workers were natives of Singhbhum. Rezas formed 35.6% of their number, and were the only women in industrial employment... Skilled labour was dominated by Muslims, Rajputs, Brahmins, and Kayasths. Muslims accounted for 21% of their number. Artisan castes such as Kamars, Lohars, Barhis and Kumhars comprised over 6%, and agricultural and ‘service’ castes made up the rest. Among the unskilled workers, ‘aboriginals’ and ‘semi-aboriginals’ were the most numerous, with Mundas, Bhuiyans, Buaris, Hos, Santhals and Oraons making up 22% of the total. Muslims were 9% and other ‘service’ and artisan castes 6%. (pp22)

In Jharia coal fields in 1929. “Ninety-four per cent of the miners, themselves a quarter of the workforce, belonged to the aboriginal, semi-aboriginal and low castes. Less than 2% of the miners belonged to the upper castes. 20% of them were women, as were nearly half of the coolies, loading and carrying coal above and below ground. The number of upper caste coolies were negligible. Among other skilled occupations the pattern changed only slightly. 71% of the winding and hauling engine men and firemen belonged to the first two groups; ie, aboriginal, semi-aboriginals and Depressed Classes. Supervisory grades were dominated by the upper castes...” (pp25)

Recruitment in mining

Under the raising contractor system, the entire production process ranging from recruitment to the cutting and loading of the coal on to rail wagons was leased for a contracted rate on the tonnage. Only the mine and the machinery were provided by the company. The contractors imported labour, paying train fares plus dadans, or advances. Workers were bound to them until these were recovered. Some of them were zamindars, which gave them extra-economic leverage in labour recruitment. (pp26)

Actual recruitment was done by gang-sardars in the villages, who were linked to the contractors or to companies through a nexus which included village headmen of pradhans.

There also existed nokrani or service tenancies leased to miners in some older collieries, which had acquired tracts of non coal-bearing lands. This phenomenon was marked in Raniganj and Giridh. (pp26)

Dagmar Engels points out that the coal-mining industry (Raniganj) relied on both seasonal migrants and settled workers.[27] While the majority of workers were recruited locally from the districts surrounding the mines, many were not full-time mine workers. They were labour tenants on Company controlled land, and divided their time between mine and agricultural work. The remainder lived in colliery lines without independent access to the land.

These lengthy descriptions of labour recruitment and working class formation in the early coal mine and steel industry clearly establish the extra-economic measures industrialists used to control workers and how the caste and ethnic segmentation was effectively utilised to create a segmented workforce. These strategies are used by industrialists to date. The system of contract work is practiced widely even now in big mines as well as in private mines of minor minerals throughout the country.

Mine workers in India are covered under the Mines Act, 1952, which intends to regulate the working conditions in mines by providing for measures to be taken for the safety of the workers employed therein and certain amenities for them. It was amended in 1983 to bring all personnel engaged solely on work relating to mines within  the scope of the Mines Act. For similar reasons it intends to bring within  the scope of the Mines Act power stations which generate power used wholly in connection with the mine concerned.  The definition of the term “mine” has been broadened to include quarries and open-cast working and also private railways, aerial rope-ways, conveyors, etc.

It shows that till 1983, workers engaged in the over-ground activities and related activities were not covered under the Mines Act, 1952. Strangely, a clause of exception is incorporated in the amended act to the effect that subject to certain conditions the Act (excepting a few provisions) shall not apply to excavations made for prospecting purposes only and to small quarries. Subject to certain provisions, specifically any mine engaged in the extraction of kankar, murrum, laterite, boulder, gravel, shingle, ordinary clay (excluding moulding sand, glass sand and other mineral sands), ordinary clay (excluding kaolin, china clay, white clay or fire clay), building stone, (Slate), road metal, earth, fuellers earth, (marl chalk) and limestone have been removed from the purview of the Act. This leaves out a very large segment of the workers employed in small private mines from the benefits of the Act.

In spite of laudable provisions in the Mines Act, all mines are virtual deathtraps for workers. This is irrespective of the status of mines - public, private and minor minerals. They are killed and maimed on a regular basis. Consider the case of one of the organised sector mines - Coal. During 1998, in various mines under Coal India Ltd. 99 deaths occurred in 86 fatal accidents. 407 serious injuries took place in 389 accidents. The way in which Public Sector coal industry dealt with the compensation of victims of Gastliland tragedy, occurred on 26-27 September 1995, killing 64 workers, is illustrative of the value State attaches to the life of workers. The total compensation given was Rs.4,55,7960, which works out to be Rs.71,218.13 per person.

Besides, accidents, workers have to face the slow death from occupational diseases like asbestosis, silicosis, Byssinosis, Pneumoconiosis and other dust related diseases.

Interestingly, no one is seriously concerned about the fact that the workers are not organised, that they do not have an organisation to represent. Right to organise is a fundamental right of any employee. Today, this is a right lakhs of workers in small mineral sector and most of the export oriented processing sectors can even dream off. Consequently, mine workers in the informal sector do not have a say in deciding matters concerning their wage, working or living conditions. They are exploited to the core, are treated cruelly and live a subhuman life.

It should also be kept in mind that the organised workers are the first to be affected by the processes of rationalisation, closure or privatisation of mines. The Board of Directors of Eastern Coalfileds Limited (ECL) in its meeting held on 22 October 1998 resolved to close 64 mines of the company with the consequent retrenchment of about 72000 employees of these mines. There are many instances where organised workers have successfully resisted the privatisation of mines. Government could not go ahead the privatisation of Kudremukh and Bailadila iron mines because of the stiff opposition by organised labour organisations in these mines.

The need for overcoming misrepresentation of opposites

We have touched upon the three sets of opposites which are raging beneath the surface of mining for the greater common good. If the first set of opposites, extraction vs sustainability is inherent in the mining process itself, the other two sets of opposites, development vs displacement and industry vs worker are more instrumental in character. The greater common good is now achieved by effectively suppressing these opposites. The breaking of the shell of greater common good and its re-articulation is possible only when we work towards the genuine resolution of these opposites. Who else can do this other than the social forces who needs the breaking up of the shell? What is called for is a unity of these forces, namely the victims of development, exploited workers and those who are concerned about the sovereign and posterity-oriented use of natural resources.

Can we say that mm&P represents this historic necessity - the coming together of these crucial social forces? However, the instrumental character of the last two contradictions leaves room for its misrepresentation. The onus is on each one of us to decide.


 

[7] J. John is the Editor of LABOUR FILE and the Director of Centre for Education & Communication –New Delhi

[8]A structural Analysis of India’s Mining Sector in the Context of Development Planning, N Naganna, Indian Journal of Economics, Vol. LXIX, Part III, No.274, pp 279-306

[9]Economic Survey, 1999-2000

[10]ibid

[11]ibid

[12]ibid

[13]The national income generated from mining and quarrying sector at current prices is estimated by deducting input cost incurred in mining operation and depreciation on capital investment in mining from the value of mineral production at the pits-head.

[14]Indian Minerals Yearbook 1997, Indian Bureau of Mines, Ministry of Steel and Mines, Nagpur, August 1998 Despite high degree of self-sufficiency, some quantities of special grades of fluorspar (acid grade containing very low phosphorus), flaky and amorphous graphite of high fixed carbon, kaolin and ballclay for special applications, very low silica limestone, dead-brunt magnesite and sea-water magnesia, battery grade manganese dioxide, etc. were imported to meet the demand for either blending with locally available mineral raw material and/or for manufacturing special qualities of mineral based products. To meet the increasing demand of uncut diamonds, emerald and other precious and semi-precious stones by the domestic cutting and polishing industry. India continued to depend on imports of raw uncut stones for their value-added re-exports.

[15] Arundhati Roy, The Greater Common Good, Frontline, June 4, 1999, pp4-29

[16]N Naganna, Economic Reforms and Sustainability - A Conceptual Analysis and Framework, Indian Institute of Management, Bangalore, November 1999, mimeo.

[17]The turning point in the emergence of sustainable development as a new paradigm occurred in mid-1980, specifically with the publication of the Bruntland Report (World Commission on Environment and Development (WCED) 1987). This report highlighted the conflicting nature of conventional eeconomic develoment and the environment, and popularised the concept of sustainable development. Many, often conflicting, definitions have been offered of what exactly constitutes SD (South Commission 1990; World Resource Institute 1992; World Bank 1992; UNDP 1992).

[18]ibid

[19]N Naganna argues that in such an event, two things likely to take place are (a) a vehement attack on all types of wastes, reduction of material intensities of products and better management of rates of mining, (b) science and technology assuming greater role in developing substitutes to both products and depleted resources.>

[20]Ozay Mehmet, The Westernising The Third World, The Eurocentricity of Economic Development Theories, Routledge, London, 1995 pp 124

[21]N Naganna, Economic Reforms and Sustainability - A Conceptual Analysis and Framework, Indian Institute of Management, Bangalore, November 1999

[22]Op cit

[23]Introduction by Micheal M Cernea in S Parasuraman, The Development Dilemma - Displacement in India, MACMILLAN Press, in association with Institute of Social Studies, The Hague, 1999

[24]ibid

[25]Usha Ramanathan (1990) quoted in S Parasuraman, The Development Dilemma - Displacement in India, MACMILLAN Press, in association with Institute of Social Studies, The Hague, 1999

[26]Dilip Simeon, The Politics of Labour Under Late Colonialism, Manohar, 1995

[27]Dagmar Engels, The Myth of the Family Unit: Adivasi Women in Coal mines and Tea Plantations in Early Twentieth-Century Bengal. In Dalit Movements and the Meanings of Labour in India, edited by Peter Robb, Oxford University Press, 1993

Communities Command Over Natural Resources