Boostrapping : EAS.10 - EAS over Clay, Marble etc
Proposed administrative procedure - EAS.10
Equal   Allowance   System   over   Clay   and   Marble,   Kota,   Granite etc stones
Purpose : To reduce nexusproness in the administrative procedures dealing with ores' mining, AND to ensure that citizens get equitable royalty over ores.
Pre-requiste readings :
EAS.01 -- Equal Allowance System over Underground Water
EAS.05 -- Equal Allowance System over Coal
- Similarity with EAS.05
- Overview of EAS.10
- Advantages of EAS.10
- Draft of the act to create procedure EAS.10
Similarity with EAS.05
EAS.10 is very much similar to EAS.05. I strongly request the reader to read the web page related to EAS.05 before reading this web page.
Overview of EAS.10
Exploration of clay and stones is cheap. And the mines of clay and stones like marble, kota, granite etc are NOT deep. So a mining company does not need too much investment into fixtures at mining site. So it is easy for citizens to expel mining company. This simplifies EAS.10, and makes it quite renumerative for the citizens.
Following are the main points EAS.10 :
- Transfer of mines : The Center shall handover ownership of ALL stone mines to the States.
- Appointing senior officers : The Chief Minister will appoint Mining Minister (as today). For each district, the Minister will appoint a Registrar, a Mine Guard and a Mine Plotting Officer for clay and stone mines. One person may manage more than one district. If that district has no clay or stone mines, these positions may be left vacant for those districts.
- The Registrar will issue a serial number for any person or company who wishes to run a stone/clay mine and/or buy stones/clay from mines of that district.
- Making mine's boundaries : The Mine Plotting Officer will demark the various mining plots' boundaries in the district and will decide the lease (in number of years) for each mining plot, and amount of stone mining company can extract every year.
eg say a district in Tamil Nadu or Karnataka granite. Then the local Mine Plotting Officer may demark one mine, and set it for "lease of 2 years, stone output of 1000 tons granite a year".
- Bidding for mine plots : A company interested in leasing mining plots can file the bids PUBLICLY before Registrar by stating the fraction of stone the company will keep for itself and fraction of stone it would hand over to citizenry.
- Allocating mine plots : The Mine Guard will give the mine plot to the company which bids the least fraction for itself.
- Allocation of stone :
- A citizen using RLPP can give his monthly stone Allowance to any company which wants to buy stone from the mines in the State.
- At the mine's site, the Mine Guard will divide the stone extracted into several wagons. Say the company has promise to keep 20% of the stones and give 80% to the citizenry. The Mine Guard will let the Allowance owning companies take 80% of the stone and give the remaining 20% of the wagons to the mining company. [For actial distribution of stone, please see "A makes parts, B selects" method in EAS.05]
- Citizens' control over senior officers : The citizens can change Mine Plotting Officer, stone Gaurd and Registrar using RLPP.
- Citizens' control over mining companies : The citizens can also change/expel Mining Companies using Approval/Disapproval filing using RLPP.
Advantages of EAS.10
- EAS.10 reduces poverty. How? A square foot of marble tile would cost Rs 20 to Rs 50 per sqft. A granite tile would cost Rs 50 to Rs 150 in the retail market. Significant chunk of granite comes from the state of Karnataka and Tamil Nadu. How much royalty do the Karnataka or Tamil Nadu Governments get from these stones that Rs 50 to Rs 150 piece? Hardly Rs. 2 to Rs 3. Of which citizens would NOT get even half of it. However, EAS.10 ensures that citizens get maximal value of profits from stones.
- It reduces nexusproneness in stone mining industry and thus improves its efficiency.
- EAS.10 reduces stone theft. How? Suppose the citizens realize that about 20% - 40% of the stone is being stolen. This means that the stone-buyers get less stone and thus give lesser value for their Allowances. In other words, if the Allowances are fetching Rs. 100 per month, stopping the theft would increase the value to Rs. 120 - Rs. 140. Given the monetary benefit, most citizens will start investigating the issue. And if the rumor of theft is correct, most citizens would Approve someone else for the position of the Mine Guard using RLPP. In fact, the fear of prmot replacement alone would ensure Mine Guard’s integrity, and thus low theft.
Draft of the act to create procedure EAS.10
Two laws needed to be passed for to enact EAS.10, one in Parliament and another at State level. I have drafted the texts for both. To see the drafts, please click here.
Now citizens can ask MPs/MLAs to pass these Acts. But IMO, it will be wiser for citizens to first enact procedure LM.02 and LM.03, and then use LM.02-03 to pass this EAS.10 draftd WITHOUT any help from MPs and MLAs. To know about procedure LM.02, please click here and to know about procedure LM.03, please click here.
If you have any other question, please mail it to MehtaRahulC@yahoo.com. Thousand thanks in advance.
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