"We are planning to emulate the Orissa model to generate employment and resources while granting leases to investors," Arun Kumar Singh, secretary in the mines and geology department, told IANS. 

In Orissa, investors are asked to pay 25 percent of the investment when their proposal for lease is recommended to the central government and 50 percent of the amount at the time of finally getting the lease.

"Many investors in Jharkhand, after getting the mining lease, involve themselves in export-oriented mining and do not set up mine-based industries," said Singh.

About half a dozen memorandums of understanding (MoU) have been signed in Jharkhand to set up mine-based industries, but none has started work.

The officials point out that under existing rules, if an investor changes his mind after getting the lease - involving himself only in mining and not setting up any industries - the state government is unable to take appropriate action.

But under the Orissa model, the state government does not approve the mining lease until investors start work and begin setting up industries and rehabilitation colonies.

It also helps investors set up units before formally getting the approval of the central government.

"The Orissa Mineral Cooperation (OMC) supplies the raw material for investors till they get formal approval from the union government," said another official of the Jharkhand mines and geology department.

-Indo-Asian News Service