I think it is an evolving phase for an economy. Whenever an economy is shifting gears or moving from an underdeveloped economy or moving towards a faster growth economy then this kind of issues are bound to occur. Especially for a democratic country like India, which is so vast and diverse. These are part and parcel of the growth pangs of the growth economy. It is a phase that will pass. We'll have to allow this phase to pass. This is part and parcel of India's economy growing up.
What gives you such confidence?
Twenty years ago, India probably was a $200 billion economy and today we are close to two trillion dollar economy. We have indeed grown. Any decision by the government today can have a huge economic impact on the industry, either ways ie positively or negatively. So therefore the magnitude of the impact has become so large that it reflects immediately. As a country we have to gradually move towards a transparent system.
Isn't that the basic issue? (lack of transparency.)
That is what we lack. I've been saying for many years that natural resources allocation should be done through a very transparent process. Whatever process we follow should be totally transparent and not discretionary. .Even now the new Mines and Mineral Development and Regulation (MMDR) bill, which is going to be put up in the parliament has discretionary powers. There needs to be total clarity, wherever there is discretionary power. That breeds corruption. We have to make things more transparent and more equitable.
Was transparency the issue relating to coal block allocation?
It should not be because even in the coal blocks, there was a screening committee. There was a system put in place. There were many chief secretaries at the meeting and secretaries from different ministries who participated in the deliberations. But at the end it was all discretionary. To get approval from the state government was itself a process. If they don't like you, then your application was rejected.
How have you managed in all this?
We built India's largest steel plant in Karnataka and till date we still haven't a single iron ore mine. I've been shouting from day one to auction the mines. Put it on auction. Then I've a chance to get a mine. If it is discretionary, I will not get for sure, despite having put up the largest steel plant in the country.
So I hope with all this hullaballoo that has happened in the last few months, the transparency may finally come. Of course, there is a flip side to it. If everything is auctioned there is a fear that the big players will corner most of it as they have the financial resources. So how will the smaller players grow.
How will the smaller players grow?
I don't have an answer to that. But through a proper policy documentation, proper mechanism we can address all the misgivings.
So what you are saying that whatever is happening around you in the mining sector is a blessing in disguise?
I am a firm believer that whatever happens, it happens for the good. Ultimately, if you have a long term vision you'll understand that it is happening for the good of the nation. Of course, whatever is happening today is very painful to everyone. To me, our group companies are put into hardship obviously it is very painful but eventually it will bring in transparency. Transparency is a must, otherwise we will continue to be called as one of most corrupt countries.
copied from ET
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