GoM reaches consensus on go ahead to the new mining bill in India
A ministerial panel, headed by Indian finance minister Mr Pranab Mukherjee, reached a consensus to give a go ahead to the draft mining bill, which seeks that miners share 26% of profits with local people who get affected by their projects.
Mr BK Handique Indian mining minister told media after the meet that It is largely approved. One more sitting of GoM remains after which it will go to the Cabinet. Whatever we have suggested has by and large been approved. We will work on it.”
Mr Handique said the ministry plans to introduce the bill in the winter session of Parliament to replace the existing Mines and Mineral Development and Regulation Act (MMDR Act), 1957.
Senior officials present at the meeting said the Mines Ministry would work on the final draft and place it before the GoM soon. The dates of the next meeting could not be immediately ascertained.
The new bill has proposed that a fund District Mineral Foundation be created and the beneficiaries be paid out from it.
Besides, it proposes that in case of a mine being non functional or in losses the firms should compensate the people affected by land acquisition, by paying them amount equal to the royalty given to state governments.
The new Bill seeks to expedite the grant of mineral concessions in a transparent manner and attracting big investments in the sector.
In the earlier draft of MMDR Act, the provision was made for companies to either share 26% equity or profits with the locals and tribals. However, the equity sharing proviso was opposed fiercely by the industry, especially the lobby group FICCI.
The GoM, constituted in June to examine the Bill has so far met thrice including on July 20 and July 30. Besides Mr Mukherjee, the GoM includes home minister Mr P Chidambaram, steel minister Mr Virbhadra Singh, law minister Mr V Moily, mines minister Mr BK Handique, commerce minister Mr Anand Sharma, tribal affairs minister Mr K Bhuria, Planning Commission deputy chairman Mr Montek Singh Ahluwalia, coal minister Mr Sriprakash Jaiswal and environment minister Mr Jairam Ramesh.
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