Lucknow Maya govt abandoned attempt after pilot project Apprehensive that the now-infamous first-come, first-served policy for allocation of natural resources comes with risks, states are now wiser and embracing the safer option of auctions for these allocations. The newly-elected Akhilesh Yadav government in Uttar Pradesh has introduced an e-tendering system for all leases on mining projects. The decision could impact the future of liquor baron-cum-mining czar Ponty Chaddha, who was seen as closely linked to the previous Mayawati government. Under the new system, lease holders will need an environmental clearance for mining if the area exceeds five hectares. Earlier, no such clearance was required and the mining lease was given on a first-come, first-served basis by the respective district magistrates. The step is being considered significant following allegations of large-scale anomalies in allotting mining contracts in the last five years, and complaints of the ‘mining mafia’ operating freely and the local administration turning a blind eye towards it. “Complaints about the mining mafia operating in the state were frequent. In order to ensure transparency and eradicate the mafia, the chief minister had proposed that information technology be used in allotting mining leases. As a result, the Uttar Pradesh Electronics Corporation, which is already handling e-governance projects, has been made the implementing agency for e-tendering of mining leases. It will also handle the entire process of e-tendering, including registration and submission of bid documents, opening and evaluation of bids and awarding the final contract,” said Infrastructure and Industrial Development Commissioner, Anil Kumar Gupta. Having uploaded the details of close to 400 mining areas on the state government’s website, the department of geology and mining has sought bids mainly for sand from the banks of all major rivers that flow through the state, including Ganga, Yamuna, Ghaghra, Betwa and Rohni. “Competitive bids will go a long way in boosting the state’s revenue collection which has been falling in the last few years,” said a mining department official on condition of anonymity. Giving details of the initiative launched last week, he said mining blocks had been identified and notified and the bidder who quoted the highest royalty would be allotted the area for one year. “We have set ourselves an ambitious revenue target of Rs 954 crore against Rs 693 crore collected by the department last year,” he said, adding that with competition in the sector, he was confident the target would be easily met. During the last five years, activities of the mining mafia in the state had assumed serious proportions, especially in some districts of eastern UP like Sonebhadra, some western Uttar Pradesh districts and Bundelkhand, where contractors were indulging in illegal mining violating environmental laws. As a consequence, price of these minerals had skyrocketed. “Illegal mining of sand, stone chips and maurang was being done in complete violation of environmental laws as well as court orders, to feed the building frenzy that had gripped large parts of West UP, bordering the national capital, in the last few years. In fact, the high prices being quoted by mining contractors for these minerals was pushing up prices of housing projects coming up in the region, affecting the common man,” said another official. It may be mentioned that the idea of a transparent e-tendering process has been doing the rounds for many years now. The World Bank too had organised a development policy loan to UP linked to the e-procurement process following which former chief minister Mayawati had introduced the e-procurement system in January 2008 in seven departments on a pilot basis under the National e-Governance Plan. However, exactly two years later in 2010, she quietly reversed the policy without citing reasons. In fact, many in the mining department have expressed their misgivings about the seriousness of the effort this time too and fear the initiative may once again be rolled back. “The mining mafia is trying to convince the power nodes in the government about the futility of the effort and the loss it can cause the state exchequer,” said another official, requesting anonymity. No minefield * Move could hit future of liquor baron-cum-mining czar Ponty Chaddha * Lease holders will now need green nod if the area exceeds five hectares * Leases earlier given on first-come, first-served basis by magistrates * UP Electronics Corp made e-tendering implementing agency