A major issue brought out by the Hoda Committee was the unwillingness of mineral rich states to export only the minerals without industrialization. Many states had adopted delaying tactics to stall new mining licenses agreed to by the Federal Government. In the new plan, the Hoda Committee will empower the Federal Government to intervene if the State Government is unable or unwilling to issue such licenses and issue the license in lieu of the dissenting State.
Reddy highlighted the importance of mining to economic development which includes one million jobs. Therefore, many steps such as treating mining as an industry to enable interested companies to get financing and a common development fund to hold royalty receipts of states with matching contribution from the Federal Government are being considered.
While the intentions are definitely well intentioned, the main issue is not that there is no FDI flowing in but the lack of avenues for foreign players to invest or makes it too risky. Firstly, the states clearly do not see any benefit from Federal mining policies and this is the prime issue that needs addressing. Clearly, overruling a state will not work as there will be immense local opposition making the project unviable besides being very un-federal in nature. They need industrialization to accompany the mining projects so they see a movement up the food chain. Secondly, the corruption requirements of the local administration and state governments require careful and serious measures. While many of these "clearances" be automated shielding the industry, state level political parties are the main culprits who routinely engage in extortion, organize strikes, and even destroy property with impunity. Thirdly, the evicted local population does not get adequate compensation or a major part of their compensation is siphoned by political parties. Hence, payment to these entities must be transparent and direct cutting out middlemen. Fourthly, there needs to be iron-clad guarantees for investments made so successive politicians do not stop work or a project in lieu of bribes.
Unless these measures are instituted, Reddy's dream of raising Rs. 100,000 core will remain a large dream