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Mar 22, 2013

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Naxalism Affects Coal Production, Economy

Production of coal suffered due to Naxalite activities in Central Coalfields Limited (CCL) Jharkhand State. Loss in coal production on account of naxal bandhs during the period April’12 to Feb’13 in CCL was approximately 1.6 Lakh Tonnes. This information was given by the Minister of State for Coal, Shri Pratik PrakashBapu Patil in a written reply in Lok Sabha today. The Minister said that as such, Police & Public order are State subjects and action with respect to maintenance of law and order lies primarily with the State Governments. The Central Government closely monitors the situation and supplements the efforts of the State Governments over a wide range of measures including assisting them under security and development related schemes. Separately, the Central Coalfields Ltd. (CCL) has indicated that they are trying to make up the loss in production by increasing coal production on other working days. The coal sector losses are particularly relevant as this is the main fuel firing power plants in the country thus there is a spin off effect on the power sector as well.

The economic costs of Naxalism have been calculated from time to time wherein there have been a number of setbacks from the delay in launching projects to lack of infrastructure as roads due to Naxal resistance to construction teams. A study indicated that states affected by Naxalite violence lost on average 12.48% of their per capita NSDP over the period 1980 to 2000. The economic cost of the bandh of the mining industry and the railway system reached upwards of 1.1 billion rupees in just two days in the recent past thereby indicating the challenge that is being faced in ensuring smooth activity in this sphere. At the same time those states that have ensured law and order and overcome the challenge of Naxalism have benefited by enhancing their growth.

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