COMPANY LAW
| Finalising Mining Bill as per GoM suggestions: Mines Secy Wed, 22 Sep 2010 09:10:35 GMT |
| The Economic Times Finalising Mining Bill as per GoM's suggestions: Mines Secy NEW DELHI: Amid a furore over 26 per cent profit-sharing with locals under the proposed new mining law and demands for watering down the provision for PSUs, the Mines Ministry today said its final draft will go with the recommendations of the Group of Ministers. "Based on the discussion of the Group of Ministers (GoM), the final draft of the new mining bill is being prepared by the Mines Ministry and will be placed before the GoM. After that it is to be sent to the Cabinet," Mines Secretary S Vijay Kumar told PTI. Last week, the 10-member ministerial panel headed by Finance Minister Pranab Mukherjee arrived at a consensus on the Mining Bill, which, among other things, makes it mandatory for companies to share 26 per cent of the profits from mining with project-affected people. The GoM will meet soon to clear the final draft of the Bill. Steel Minister Virbhadra Singh, who is a part of the GoM, has sought a "special consideration" for PSUs like SAIL and NMDC, a proposal termed by industrialist-turned politician Naveen Jindal-led Jindal Steel and Power as discriminatory. The firm has also termed the proposed 26 per profit-sharing regime to be too high. Besides Jindal, the Tatas have also criticised the proposed levy and asked the government not to charge it as a separate tax, saying that social obligation is part of the operating cost of the company. The new Bill has proposed that companies share 26 per cent of the profits from mining with the locals who lose land. For such profit-sharing, the GoM has proposed creation of a District Mineral Foundation, for disbursement of benefits to the locals. It also proposes that in case a mine is non-functional, or running in losses, the firms should compensate the people affected by land acquisition by paying them an amount equal to the royalty given to state governments. The royalty paid by mining companies to state governments runs into hundreds of crores of rupees. The new Bill seeks to expedite the grant of mineral concessions in a transparent manner and attract big-ticket investments in the sector. Mines Minister B K Handique had earlier said the ministry plans to introduce the Bill in the Winter Session of Parliament to replace the existing Mines and Mineral Development and Regulation (MMDR) Act, 1957. The new legislation is being framed at a time when UPA Chief Sonia Gandhi has voiced concerns over land acquisition norms. Gandhi had said she favours the Haryana model, where farmers are provided lucrative compensation in addition to annuity for 33 years. |
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