This document provides an overview of natural resource ownership, use, and governance in India. It discusses how the state has claimed ownership over natural resources that are meant to belong to the people. It also outlines several principles from the Indian Constitution related to natural resources and livelihoods. However, it notes that these principles are often ignored in practice. The document then examines some specific cases related to mining, displacement, and environmental impacts. It argues that current development policies prioritize economic growth over environmental protection and peoples' rights.

1. Natural Resources, Development and
Law : Sources and Perspectives
Leo F. Saldanha and Bhargavi S. Rao
Environment Support Group
Www.esgindia.org
Presented
National Law University, Delhi
August 2011

2. Who Owns Natural resources? Who
uses? Who decides? Who benefits?
• The people are the owners and the
State is the custodian
• However, in practice, the State has
arrogated to itself the power of
ownership
• Movements and struggles to
reclaim control of natural resources
and commons have been patchily
successful

3. “The State shall, in particular, direct its
policy towards securing
(a)that the citizens, men and women
equally, have the right to an adequate
means of livelihood;
(b)that the ownership and control of the
material resources of the community are
so distributed as best to subserve the
common good;
(c)that the operation of the
economic system does not result
in the concentration of wealth and
means of production to the
common detriment”
Article 39 of the Constitution of India.

4. • Right to Life includes Right to Clean Environment and
Livelihood
• Polluter Pays Principle
• Principle of Absolute Liability
• Principle of Intergenerational Equity
• Doctrine of Public Trust
• Precautionary Principle
• Principle of Prior and Informed Consent
But…
• These principles rarely guide administrative decisions, and are
often ignored by the Judiciary in enforcing compliance.

5. Emerging Policies and
Trends
Globalisation induced policies promoting high economic
growth, push for FDI and private sector participation
but has skewed relationships between ownership,
use and control of natural resources.
Strong influencing factors:
• Govindarajan Committee on Investment Reforms,
2002
• National Environmental Policy, 2006
• National Water Policy, 2002
• National Agricultural Policy, 2000
• National Mineral Policy, 2008
Trends:
• Extractive industries have achieved second highest
growth rates

6. High growth sectors (Q1 of 2009-10 over Q1 of 2008-09)
Mining & quarrying at 7.9 per cent
Electricity, gas & water supply at 6.2 per cent
Construction’ at 7.1 percent
Trade, hotels, transport and communication at 8.1 per cent,
Financing, insurance, real estate and business services’ at 8.1 per cent
Community, social and personal services at 6.8 per cent.
The growth rates in ‘agriculture, forestry & fishing’ and ‘manufacturing’ are
estimated at 2.4 per cent and 3.4 per cent respectively
Ministry of Statistics and Programme Implementation

7. • West Bengal used 2 million hectares between 1947 and 2000 for
industrialisation, but committed 93,995 hectares over the past decade.
• Orissa used 40,000 hectares for industry between 1951 and 1995 but
planned to acquire 40,000 hectares more in the succeeding decade.
• Between 1996 and 2000, Andhra Pradesh acquired half as much land for
industry as it did in the preceding 45 years.
• Goa acquired 3.5% of its landmass between 1965 and 1995. If all its plans
go through, it will acquire 7.2% of its landmass in this decade.
• Gujarat has promised land for 27 SEZs, and around 200 SEZs are being
planned all over India.
• Almost all of iron ore in Bellary district of Karnataka is being mined
illegally and for export to China.

8.  Naxalites have gained influence in over
220 districts in about 20 States of the
country, accounting for 40% of India's
geographical area, or roughly half the
districts in the country.
 Prime Minister Manmohan Singh termed
Naxalism the biggest internal
security threat, though adding they
should not be viewed as terrorists.
 Is spread of Naxalism a major indicator of
disenchantment with current policies and
politics of economic development? Prime Minister
Manmohan Singh

9. Despite the rhetoric Indian Budget provides marginal
support for securing Environmental Justice?
Budgetary allocation in 2006 on some sectors:
 Min of Environment and Forests : Rs. 12.35 billion (0.58% of India’s government
spending)
 Dept of Atomic Energy : Rs. 68.9 billion
 Ministry of Coal : Rs. 40 billion
 Ministry of Commerce : Rs. 19 billion
The situation is no different now.

10. World Investment Report, 2009
“Government could … promote contract farming
between TNCs and local farmers in the direction
of enhancing farmers' predictable income, productive
capacities and benefits from global value chains.”
However, to deal with the extensive adverse impacts:
“... that deal with the need for international
community (to) devise a set of core principles
transparency in large-scale land acquisitions, respect
for existing land rights, the right to food, protection of
indigenous peoples, and social and environmental
sustainability”.

11. Does the Rule of Law empower Peoples’
Access to Justice, Information and
Participation?
• There has been some progressive movement in
affirming human rights with enactment of Right
to Information Act, Forest Rights Act, etc.
• At the same time, repressive colonial laws
continue to play havoc with peoples’ lives.
Further, post colonial nationalistic laws, such as
AFSPA, torment and torture peoples fundamental
freedoms in marginalised regions.
• Overall, though, the high cost of accessing justice
(inaccessible courts, high litigation cost, delays,
etc.) in judicial and non-judicial forums is
frustrating people
• Poor feel victimised by the system, while the rich
haven’t had it better ever.

12. Past experiences: Mining in
•
Kudremukh
Decision to mine iron ore in the ecologically sensitive
Kudremukh region of Western Ghats was taken during the
Emergency by promoting the PSU KIOCL.
• Home to variety of endemic flora and fauna, many highly
threatened or endangered, and a critical watershed for several
principal south India rivers, the lack of internal democracy
masked many issues including widespread displacement of
tribals and forest dwelling communities.
• The purpose was to mine ore for export to Iran in exchange for
foreign exchange to help India tide over a serious forex crisis.
Did not work, as the Shah’s regime was overthrown, but the
mining continued with little commercial success for over three
decades.
• A proposal to declare the region as a National park in 1987
conflicted with ongoing mining and the rights of tribals.
• Wide-ranging protests against continuing mining operations
influenced the Supreme Court in shutting down the mine in
2002, based on the Wildlife Act.
• But the Wildlife Act attacked the human rights of tribals, who
began to resist the declaration of the area as a National Park
with support from Naxal groups.
• Meanwhile, liberalisation of mining positioned KIOCL in an
awkward competition with private players, especially in Bellary.
• KIOCL is now fighting for its right to mine against the out of turn
allotment accorded to POSCO in Orissa.

13. •
POSCO
South Korean giant POSCO signs an MOU with
Orissa in 2005 to set up the single largest industrial
and infrastructure project of the world and also the
largest FDI in India.
• Project consists of a 12mtpa Steel plant, 1000 MW
captive power plant, the country’s largest captive
mine and a massive captive port in ecologically
sensitive coastal and forest regions of Orissa
• Under pressure from PMO and Finance Ministry,
MoEF grants speedy Environmental, Forest
diversion and Coastal Zone clearances without any
proper appraisal and in patent violation of laws.
• Protests by local communities against the project
prevents land acquisition
• A remarkable feature is the affirmation of rights
under the Forest Rights Act 2006, which creates
various problems for Government.
• Project will displace several thousands and destroy
the ecologically sensitive habitats highly threatened
Oive Ridley turtles and Horse Shoe Crabs
• Government appointed independent investigations
have rejected project clearances, yet MOEF has
controversially approved clearances
• Battle continues in project affected areas and in
Court

14. Bellary to Beijing
• Between April 2006 and July 2010 the Karnataka lost at least
Rs. 12,228 crores in revenue due to illegal mining.
• Karnataka contributes about one-fourth of the country’s annual iron
production, which is 245 million tonnes. Sixty per cent of this comes
from the state’s Bellary district which has 124 mines, most of them
within forest area.
• JSW Steel Ltd owned by the Jindal Group, Adani Enterprises Ltd, Sesa
Goa Ltd (Vedanta group) and MSPL Ltd owned by the Baltoda Group
—were the major players, besides the National Minerals
Development Corporation (NMDC), India’s largest public sector iron
ore producer. Not to forget the mining empire of Reddy 'brothers'.
• The National Agricultural Cooperative Marketing Federation of India
Ltd (NAFED), which otherwise deals in procurement of oilseeds,
pulses and cotton, traded in iron ore through dubious means.
• The activities were carried on in violation of many laws, including
the Mines and Minerals Development and Regulation Act (1957),
Forest Conservation Act (1980), Environmental Protection Act
(1984), Foreign Exchange Management Act (2006) and Panchayati
Raj Act, to name but a few.
• This was in connivance with the departments of police, mines,
forest, revenue, weights and measurements, commercial taxes,
transport, labour and environmental regulatory agencies.

15. A lawless country
• Papinayakanahalli is a tiny village in the foothills
of the mountain ranges in Hospet taluka of Bellary
district, the nerve centre of corrupt iron ore
mining in India.
• People here have stopped cultivating and begun
to dig up the earth for iron ore.
• This fetches them more handsome returns in a
short period, than agriculture ever can.
• Papinayakanahalli now has freshly built concrete
houses, and some own tippers and earth movers
to help expand mining. There are 200-odd trucks
in the village now.
• As in this village, everything has turned red across
Bellary, and surrounding districts: trees, crops,
streams,.....
• Unbelievable pollution has affected health and
the environment and agriculture is worst hit.
• Women and children bear the brunt of all the
mining impacts

16. Bribing the Gods: Bellary Barons
Bellary mine baron Gali Janardhan Reddy with an
offering of a diamond-studded crown worth Rs 42
crore [US$8.8 million], became the biggest donor
to Lord Venkateswara at Tirupati since the
Vijayanagara kings 400 years ago.The 20-kg
stunner was a "thanksgiving" gesture, the minister
said. Sources added that 32kg of `aparanji (pure)'
gold went into its making, besides 70,000
diamonds weighing 4,000 carats. The 2.5-ft crown
has a huge 890-carat emerald from Africa
engraved in the centre which alone costs around
Rs 10 crore.

17. • Governments are increasingly privatising
management of lakes and urban commons due to
pressures from business and financial lobbies
•ESG with support from vigilant public and the
media have fought against such illegal policies and
worked to secure Access for All to the commons
•High Court of Karnataka has supported ESG’s PIL
against privatisation of lakes and held that accessing
public commons should not become a privilege of
the rich and wealthy.

18. Bt Brinjal
Biopiracy
• Monsanto, Mahyco, UAS Dharwad, TNAU and Sathguru consultants
have accessed 10 varieties of brinjal in Karnataka and Tamil Nadu
without any prior and informed consent from the National
Biodiversity Authority, State Biodiversity Boards and applicable
Local Biodiversity Management Committees as required by the
National biological Diversity Act 2002.
• Such a rigorous process of appraisal is mandatory to protect loss of
biodiversity due to misuse or overuse, theft of biodiversity and to
secure biodiversity from contamination when transgencis are
involved.
• In addition, the law mandates that when biodiversity is to be
accessed in any manner for commercial, research and other uses,
local communities who have protected local varieties and cultivars
for generations must be consulted and if they consent benefits must
accrue to them per the internationally applicable
Access and Benefit Sharing Protocol.

19. • Based on nation-wide public consultations, Indian Environment Minister Jairam Ramesh
placed a moratorium on the environmental release of India’s first GMO food-crop: Bt brinjal
• Developed by Monsanto-Mahyco the GMO project was supported by USAID and Cornell Univ.
In collaboration with Univ of Agricultural Sciences – Dharwar (Karnataka) and Tamil Nadu
Agricultural University.
• While the moratorium has bearing on the health and environmental implications of Bt Brinjal,
the Ministry has completely ignored major violations of Convention on Biological Diversity –
1992 and Biological Diversity Act – 2002.
• ESG raised formal complaints before statutory authorities and an investigation is now
underway into charges of theft of genetic wealth of India.
• At stake in this precedent legal action are Access and Benefit Sharing Rights of local
communities, seed sovereignty of farming communities and securing genetic diversity against
corporate commoditisation and commercialisation.

20. There has been widespread debate and protest against such dilution of
environment norms and laws from peoples' movements, environmental groups
and leading Parliamentarians
Campaign for Environmental Justice – India organised a series of campaigns
including Protest Action against the Indian Environment Ministry through
events such as MoEF Suno! and MoEF Chalo! in 2005