More Mining Regulations Means More Corruption And Less Mining

There are allegations filed with UP Lokayukta that UP’s State mining minister has amassed wealth over Rs 900 crore in last two years.

On page 96-97 of his book “Corruption in India” ( available for free download at  Anang Pal Malik wrote:

No mining can be done without paying bribes to the approval granters, to the clearance givers; therefore mining is done not by entrepreneurs but by fixers and mafia gangs. Therefore instead of mining tycoons we have mining dons. No scientific mining is done; resources are milked in the most inefficient and wrong ways; killing the mines. The mining mafia pays everybody in the area: the legislator, police, revenue officials, and the transport department officials; therefore working conditions are horrible in the mines. Crime radiates in all directions from a mine, and fellow mafia gangs become transporters and labour contractors. Mafia is able to kill competition so it is able to fix prices. Therefore ultimately the last consumer ends up funding all the bribes paid upstream, and funding the inefficiencies so generated. This creates the inefficiencies in the economy, flow of black money all around, giving rise to cash couriers, hawala operators. Supply of raw materials is always uncertain so hardly any true businessman thinks of setting up business in India.