New Delhi: After witnessing the appalling consequences of the ‘First Come First Served’ (FCFS) policy in the 2G spectrum scam, possibilities are high that all government sectors may soon bid adieu to the concept.

Ashok Chawla Committee constituted to suggest a roadmap for efficient and transparent distribution of scarce natural resources is expected to frame a strategy to terminate the policy. Therefore, it is likely the policy will not be used in natural resources sectors like coal, oil, gas and spectrum.

The commerce sector has maintained that if the tender procedure of natural resource allocation is followed through transparent means, then the FCFS policy should be ended.

FICCI also said that there was a need to put an end to this policy to attract huge investments in the mining sector.

In February, 2011, when the 2G spectrum scam report surfaced, the Central government formed a committee headed by former Finance Secretary Ashok Chawla to review the natural resources allocation policy.

Chawla Committee recommendations will have an impact on economic growth of Jharkhand, Maharashtra, West Bengal, Orissa, Andhra Pradesh, Karnataka and all other states where natural resources are found in abundance.

On the recommendations of the Chawla Committee, the royalty given to states in exchange of the natural resources will be calculated. Besides, the panel’s suggestions will also be inculcated in the Proposed Mining Minerals Development Regulation Act.

The panel will also decide the responsibilities of mining companies for the social development near the mining sites.
Noticeably, barring oil and gas deposits, FCFS policy has been followed regularly by maximum mining sectors.

JPN/Bureau