Kozhikode (Kerala) | Kerala Industries Minister P K Kunhalikutty on Saturday said the state government would not permit the privatisation of mineral sand or allow fresh mining of rare earth minerals.
He said that decisions on the proposed tax reduction for low-alcohol beverages and the PM SHRI scheme would be taken after discussions within the UDF.
Speaking to reporters amid the controversy over certain budget proposals and decisions of the UDF government, the senior Indian Union Muslim League leader said that some of them were a continuation of initiatives from the previous LDF government's tenure.
Kunhalikutty dismissed allegations that the South Kerala Critical Mineral Corridor, announced in the state budget, was intended to facilitate private mining.
"There is no such policy. One thing must be clearly understood: mineral sand cannot be privatised. It is reserved for the public sector, and that will continue. There is no question about that," he said.
He said that the projects under discussion were only value-addition proposals involving public sector enterprises and did not involve fresh mining activities.
"If any possibility of privatisation or fresh mining emerges, the UDF will not permit it. We will study the proposals in detail and announce our policy. But let me make it absolutely clear: there will be no new mining and no privatisation," he said.
Kunhalikutty said that since the UDF government led by Oommen Chandy assumed office in 2011, the front had not allowed either privatisation or fresh mining, and the same policy would continue.
The minister said that the government had not agreed to sign any MoU on the proposed mineral corridor and needed time to study all aspects of the proposal.
"I want to reassure everyone once again. Privatisation will not happen, and new mining will not happen. That is our position," he said.
On the proposal to reduce tax on low-alcohol beverages, Kunhalikutty said that the matter would be discussed within the UDF before a final decision was taken.
"The IUML is part of the UDF, and the League will carefully examine the issue. We will proceed in accordance with the policy of our party and the coalition," he said.
He noted that the budget was presented only a few weeks after the new government assumed office and that some proposals reflected work carried over from the previous administration.
"Some of the old schemes might have found a place in the budget because officials had been working on them during the previous government's tenure. However, implementation, including tax-related proposals, will be decided only after discussions, as the Chief Minister has already stated in the Assembly," he said.
On the Prime Minister Schools for Rising India scheme, under which the previous LDF government signed an MoU with the Centre before keeping its implementation in abeyance following protests, Kunhalikutty said that the issue had originated during the previous government's tenure.
He alleged that the previous government had "trapped" Kerala in the PM SHRI scheme after accepting central assistance.
"We have constituted a committee to examine what can be done. There will be clarity in the steps we take," he said.
The minister said that the committee would examine whether the state could withdraw from the PM SHRI scheme and assess the legal and administrative implications of such a move.