The government on Tuesday shot down justice M B Shah inquiry commission's recommendation in its interim report to clamp an immediate total ban on exports of iron and manganese ore pending streamlining of procedures to curb heavy illegal mining and corrupting of law enforcing agencies.

The commission had concluded in its interim report submitted on July 14 that bulk exports is a "primary cause" of the illegal mining and hence ban on export of iron ore fines that are primarily exported would result in "a lower incentive for illegal mining and growth of individual steel plants in India."

Justice Shah, a retired supreme court judge, is quite frank that "it would be impossible to control illegal mining" unless procedures for grant and renewal of lease, establishment of checkposts and sufficient weigh bridges with adequate staff and frequent officers' visits to check the mines are in place, and pending which the exports be banned.

His interim report says the ban can be relaxed and liberalised once effective enforcement agency is in place and assessment is made of the available reserves and domestic demand of the steel industry. The interim report covers mining in only three states -- Karnataka, Maharashtra and Orissa, and not Goa where it started investigations subsequently.

In its action taken report (ATR) tabled in the Lok Sabha by mines minister Dinsha Patel, the government held that "exports can not be the reason for illegal mining as rather it is lack of governance at state government levels which has largely contributed to illegal mining." The ministry is of the view that "a ban on export of iron ore may not be feasible."

Pointing out that the Mines and Minerals (Development) and Regulation Act and Rules do not bar export of minerals, the ATR said the issue of any curbs on exports of iron and manganese ore has been referred to the department of commerce which handles the export-import policy.

In its scathing report on the illegal mining yielding large enough money to corrupt the law enforcing agencies, the shah commission warned that "the state should not bend its policies and permit export so as to drain out national wealth and permit activities which adversely affect forest area, environment, and encourages exploitation of labourers, even of minors, by various methods."

It held that "Such illegalities would continue because there is inadequate staff, no desire to follow the rules and regulations by the lessees, no will to implement the rules and regulations by the concerned officers and finally, power to take deterrent action is not with one body."

On the commission recommending specific actions to control illegal mining and for the recovery of royalty, the ATR says these actions pertain to the state governments and as such they are communicated to the state governments. "The ministry of mines intends to periodically review the action taken on this recommendation of the shah commission with the state government in quarterly meetings of the central coordination cum empowered committee," the ATR said.

As regards the commission seeking to debar mining leases to the persons convicted of illegal mining by amending the mineral concession rules, the ATR says this recommendation is in line with the new draft MMDR Bill approved by the government on September 30 which provides that "any person convicted of illegal mining would stand to lose not only his existing mineral concessions but also be debarred from obtaining any concessions in the future."

On the Commission wanting the miner simultaneously apply for forest clearance and state pollution control board clearance at the time of applying for renewal of mining lease, the government agreed to forward this recommendation to the Ministry of Environment and Forests for incorporating it in the rules governed by it.