Mining outfits opposing the Government's proposal to share profits with land losers are now willing to increase their contribution from 10 to 26 per cent to a royalty-linked development fund for the welfare of such displaced persons.
The Federation of Indian Mineral Industries (FIMI) had mooted the creation of a royalty-linked development fund with the State governments as an alternative to the Centre's proposed move to make it mandatory for mining companies to share 26 per cent of their net profits as annuity with those displaced.
The profit sharing proposal is part of the new mining legislation and is awaiting the final clearance from the Group of Ministers led by the Finance Minister.
“We are open to increasing our contribution to up to 26 per cent from the earlier 10 per cent to the royalty-linked fund. This will be in addition to the royalty currently being paid by the industry,” said Mr R. K. Sharma, Secretary-General, FIMI.
The industry body has suggested that State governments could make a matching contribution to the development fund, which could be managed by a community trust. State governments earn about Rs 4,500 crore in annual royalties from the mineral industry.
“Sharing of 26 per cent net profits would make mining an unviable proposition as the mining industry is already heavily taxed. The Government is thinking only of big mining companies. There are mine owners with a single licence for whom it would be difficult to share their profits,” Mr Sharma said, adding that implementation of such a concept would not be possible for scattered mining operations.
http://twitter.com/umeshshanmugam
No comments:
Post a Comment