Mining firms may have to spend 1-2% of profits more on social schemes

Tuesday, October 05,

 

 

Mining firms may have to spend an additional 1-2% of their net profits for social and environmental initiatives around their project areas.

 

This expense is not part of the proposed 26% profit sharing with people displaced by projects.

 

The Government proposes to introduce a Sustainable Development Framework (SDF) for the mining industry as part of which the firms are expected to carry out initiatives for the social and environmental upkeep around their projects.

 

As part of the SDF, which has been drafted by the consulting firm ERM India, the mining firms are also expected to make periodical disclosures on such social and environmental initiatives.

 

Source: The Business Line

 


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