Corruption in Mining - Addl Inputs

Below are the key solutions, issues and root causes as outlined by you in the mining industry. Kindly review them and if you have any additional inputs, please share.

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Transparency International India

Corruption in Mining Industry - Solutions

1. All the coal block allotments done in the last 5 years must be cancelled
2. Steps should be taken to streamline the allotment of the mines
3. An E-tendering system should be used for the allotments
4. Anyone who can provide Earnest Money should be allowed to bid
5. Instead of insisting on relevant past experience, Earnest Money should be raised
6. The opening of the tenders should be made transparent
7. Laws should be made against the politicians getting involved in the mine ownership or operation
8. The staff should be made accountable for their work and their performance should be reviewed every year
9. The corrupt officials should be caught and suspended
10. The procurement department should be made technologically advanced and should be headed by professionals who understand the sector well
11. Complainant's details must be confidential and a particular officer must be responsible if they are leaked
12. Proper protection should be given to the employees of the watchdog department
13. If a company is found guilty, they must be barred /blacklisted permanently
14. Pending court cases pertaining to this area should be minimised by setting a maximum time limit
15. Sector Regulator should be constituted and it should be included in his responsibilities that the queried material is available in the quantities desired by the market
16. Monitoring the duplicity is a must
17. GPS monitoring of vehicles in the mine area should be done along with the weight measurement of each load.

Corruption in Mining Industry - Key Issues and Root Causes

1. In many places, mining is operated by mafia
2. Many politicians are involved in mining which is a conflict of interest
3. Coal blocks are allotted to the person who pays the highest bribe
4. Guidelines are not adhered to by the staff
5. Huge black money is generated by the mines contractors
6. There is major collusion with high level authorities
7. Work orders are issued which dilute the laid down rules against gratifications
8. Every contractors have to pay percentage to the authorities under the table to get their work done
9. Trucks are allowed overloading and the differences in values are pocketed by the mine authorities and the mafias
10. Loading preference is given to trucks taking bribes
11. There is no transparency in issuing and opening of tenders
12. Many work orders are issued without calling for tenders
13. High value machinery and equipment of sub-standard quality are purchased
14. All purchasing in mines are subject to payment of commission
15. No bills are considered for payment until commission is paid
16. Observing the engineering and technical works related to OMC supervised by a nontechnical person. more  

View all 25 comments Below 25 comments
The key points are well taken care. Please proceed further. more  
The whole mining sector (at least big blocks ) if handover to army then curb of local mafia is possible. more  
State Mining website should display all details ;-[1] no of mines, size etc.Under lease with whom.upto what time. [2] Forthcoming tenders details.[3] The tendering should be done on e portal with intimation of tenders to 40-50registered parties thru email.By this even if a good party gets contract but it is difficult to deal with local mafia without state political support which seems difficult in present scenario. more  
Please make complaints against CBI or Police who are protecting mining Mafias on http://pgportal.gov.in/ more  
The Mining Agencies are facing following problems:
1. Mostly government agencies are inviting contractors for collection of ores.
2. Contractors makes agreement with agencies for collection at the fixed rates.
3. Most of the Contractors makes another agreements with transporter and Railway Dept. separately for collection from mines to transport to the destination of contractor's premises or handover to railways to dump in the wagon to reach contractor's destination and line up to collect again to transport to contractor's premises.
4. Loading and Unloading with the help of labor is a sever problem at Mine Agency, Contractor's end and Railways authority to load at one station and unload at another station.
Solutions:
1. All the Mining Tenders should invite ONLINE Tendering with specific agreements and all Payments should be through Bank Notes or Challan.
2. Minding Agents may collect advance payment for the cost of mines, transport charges, Railways charges through wagon loading, labour charges etc.
3. After collection of ORE from the Mines, it requires certain processes to purify as per the requirement of contractor.
4. Payment Terms, Delivery, Transportation should be specific.
5. Delivery and Transportation should take the responsibility of Mining Agencies to reach required ORE to the Contractor's Premises as per the exact requirement of quality and quantity.
5. It should make the responsibility to the Mining Agent to transport the ORE to the Railway Station for loading & unloading in the wagon.
6. It should make the responsibility to the Contractor to collect ORE from destination Railway Station once received message of loading the ORE in the wagon.
7. After receipt of ORE, Contractor has to intimate the Minding Agent the receipt of required ORE by mentioning its satisfactory quality and quantity as per requirement. Any deviation in this regard may be sent within the shortest possible time. Delay in sending such report should not be considered.
5. The deal will be finalized once it reaches to the Contractor's premises end.
6. more  
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