The Cabinet approved on Friday a
bill calling for coal miners to share a maximum 26 percent of their profits
with local communities and for other miners an amount equivalent to royalties,
a government minister said. The bill is expected to be introduced in the Winter
Session of Parliament.
The bill now requires
parliamentary approval to become law and is seen as a major move towards
reform. The Mines & Minerals (Regulation and Development) Bill, 2011, which
seeks to replace a 1957 act, also provides for setting up of National Mining
Regulatory Authority and Tribunal and formation of District Mineral Foundations
in 60 mineral-rich districts across the country.
An estimated Rs 10,000 crore will
be generated per year from the miners and an average amount of Rs 180 to Rs 200
crore will be distributed among District Mining Foundations of 60 mineral rich
districts that include 25 districts affected by Left Wing Extremism.
However, mining companies especially
Coal India is likely to be hit the most as it will have to share one fourth of
its profit, which means lesser money for growth and dividends.
According to coal minister
Prakash Jaiswal, the new bill would speed the approval of land clearances something that both foreign and domestic investors have long complained about
in India. Moreover, he insisted that the new bill will not impact the revenues
of coal companies in the long-term.
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