Thaindian News

Raipur, March 22 (IANS) The Associated Chambers of Commerce and Industry of India (ASSOCHAM) Tuesday asked the minerals-rich Chhattisgarh to ease its strict enforcement of forest laws “to enable socially backward class to access abundant natural resources in the state”.

Chhattisgarh contributes close to 20 percent of India’s iron ore reserves and forms an important segment of state’s mineral resources, ASSOCHAM noted.

“Considering that Chhattisgarh is home to some of world’s best quality iron ore deposits, ASSOCHAM recommends the state government to encourage investors for setting up plants related to heavy machinery and components to generate employment avenues,” the industry lobby said in a statement.

It added: “Mining sector contributes close to 8 percent of the state GDP (Gross State Domestic Product - GSDP) and the government should encourage private participation for further growth in the sector.”

The ASSOCHAM also suggested that the state government “provide stimulus package to gems and jewellery sector to invite small investors and jewellers to set up Small and Medium Enterprises (SMEs).”

“Abundance of coal, which can be supplied to other states, is another lucrative sector of great significance for Chhattisgarh. ASSOCHAM suggests that the government should create better logistics facilities and infrastructure such as good road network,” the statement added.

The industry body also said that private mining of mineral reserves located in tribal areas of Chhattisgarh must be made permissible to help develop the state socially and economically.

The state government should protect interests of the tribals while granting such clearances, ASSOCHAM said.

This would incorporate development of resettlement plans, earmarking a part of mining royalty for local development and educating local tribal population on economic benefits of developing mineral reserves, the statement added.