Chure ‘exploitation’ policy adopted in the budget is the center of controversy in Nepal. The policy brought by the government through the ordinance says that Nepal will reduce the trade deficit by exporting stone, ballast, and sand. Not only this, the provision is designed to waive customs duty on imports to construct ropeways from industry to export point. It seems to encourage exports.
“The irony to all of this is that the government has set aside NPR 1.53 billion for the Chure conservation program in order to construct 200 ponds, control soil erosion in 164 rivers in the Chure region, and on the other side”, Nepal Economic Forum reports. The government is being criticized for planning to destroy the natural resources of the Chure region and turning the country’s plains into a desert.
Firstly, the issue was raised by the Crusher and Mining Entrepreneurs Federation a year ago. As ministries seek pre-budget discussions and solicit suggestions, they might get influenced by lobbying. For instance, in a conversation with stakeholders at the Ministry of Industry, Commerce, and Supplies, the federation has suggested extracting ballast and stone if it aids internal consumption.
The Ministry of Industry modified the suggestion of the federation mentioning it can be excavated only from areas other than Chure. In doing so, it should do an environmental impact assessment. According to the report, mineral construction materials can be extracted from areas other than Chure based on environmental impact assessment. However, FNCCI General Secretary Purushottam Regmi alleges that the budget has failed to address the essence of the federation’s demands.
Except for Chure, the policy was readied to export stones, ballast, and sand from all over Nepal. In addition, the budget also included the issue of exemption of customs duty. The government plans to build ropeways to transport ballast, stone, and sand from the crusher industry to the customs. Import of goods for the construction of this ropeway has been encouraged by giving trades exemption. “We initially ignored this idea, but the circular was made obligatory for us,” said a government official in Kantipur TV HD.
Ministry of Federal Affairs ‘Did Not Pay Attention’
Federation of Crusher Entrepreneurs had also submitted its prospects to be included in the budget to the Ministry of Federal Affairs and General Administration. As mines fall under the authority of the local government, the Ministry regulates as the parental institution for controlling it. The government did not suggest reporting the disadvantages of Chure exploitation to the Ministry of Finance, saying that the crusher businesses could not be regulated.
To put a case, in 2014, the government banned mining-related activities from Chure due to degradation. The ban was advantageous for the ecology of Nepal because the Chure reason is very fragile – which leads to soil erosions. Sadly, for this government, these consequences are only limited in the reports – not on practicality.
“We did not understand the essence of this, so we did not take these demands,” said a joint secretary in the Ministry of Federal Affairs and General Administration. It isn’t easy to regulate; in that case, the decision would be suicidal.
Chure Policy – Comfortable for India?
Generally, the demands of the stakeholders in the budget are being cut from the bottom to the top. But this demand of including Chure was a ‘program of concern’ – from the top. So it is not much difficult to guess in whose interest the Nepal government made such an arrangement.
The Ministry of Finance has clarified that this policy aims not to exploit the Chure area after widespread protests. The fragile political situation of Nepal has been successful for the Indian government in getting to make decisions that benefit their country. Opposition parties have stated they will not run in the by-elections – freshly introduced after the re-dissolution of the parliament.
