Royalty Sharing Model
The Government set up a Group of Ministers (GoM) to look into the proposed new draft Mines and Minerals (Development and Regulation) Bill, 2011. The Cabinet considered the recommendation of the GoM and has approved the draft MMDR Bill, 2011 on 30th September 2011. The benefit sharing model proposed in the new draft MMDR Bill, 2011, is applicable for all mining leases, including those in tribal areas, and provides for:
suitable compensation for all exploration activities to be payable to the person or family holding occupation or usufruct or traditional rights on the area of exploration,
all Mining Lease holders, including public sector undertakings and private sector companies to pay annually into a District Mineral Foundation set up at District level –
a sum equivalent to royalty in case of major minerals (other than coal)
a sum equivalent to 26% of profit in case of coal minerals;
and in case of minor minerals a sum prescribed by the State Government.
A portion of the amount paid into the District Mineral Foundation shall be used to make recurring payments to people affected by mining related operations.
All mining companies to allot at least one share at par to each person of the family affected by mining, so as to give a sense of ownership in the enterprise.
All mining companies to provide employment or other compensation as stipulated under Rehabilitation &Resettlement policy.
The proposed provision for sharing of benefits with the local population would enable monetary benefit to families affected by mining related activities, creation, management and maintenance of local infrastructure in areas affected by mining related operations, and implementing measures under sustainable development framework.The District Administration would also be represented in the Governing Council of the District Mineral Foundation for management and utilization of the funds for benefit of the local population affected by mining activities.
This information was given by the Minister of State (Independent Charge) for Mines Shri Dinsha Patel in a written reply to a question in Lok Sabha today.
The Government set up a Group of Ministers (GoM) to look into the proposed new draft Mines and Minerals (Development and Regulation) Bill, 2011. The Cabinet considered the recommendation of the GoM and has approved the draft MMDR Bill, 2011 on 30th September 2011. The benefit sharing model proposed in the new draft MMDR Bill, 2011, is applicable for all mining leases, including those in tribal areas, and provides for:
suitable compensation for all exploration activities to be payable to the person or family holding occupation or usufruct or traditional rights on the area of exploration,
all Mining Lease holders, including public sector undertakings and private sector companies to pay annually into a District Mineral Foundation set up at District level –
a sum equivalent to royalty in case of major minerals (other than coal)
a sum equivalent to 26% of profit in case of coal minerals;
and in case of minor minerals a sum prescribed by the State Government.
A portion of the amount paid into the District Mineral Foundation shall be used to make recurring payments to people affected by mining related operations.
All mining companies to allot at least one share at par to each person of the family affected by mining, so as to give a sense of ownership in the enterprise.
All mining companies to provide employment or other compensation as stipulated under Rehabilitation &Resettlement policy.
The proposed provision for sharing of benefits with the local population would enable monetary benefit to families affected by mining related activities, creation, management and maintenance of local infrastructure in areas affected by mining related operations, and implementing measures under sustainable development framework.The District Administration would also be represented in the Governing Council of the District Mineral Foundation for management and utilization of the funds for benefit of the local population affected by mining activities.
This information was given by the Minister of State (Independent Charge) for Mines Shri Dinsha Patel in a written reply to a question in Lok Sabha today.
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