The mining industry has reacted adversely to the proposed Mines and Minerals (Development and Regulation) Act that tribals be provided with a 26 per cent equity in mining companies as also a section of their annual revenues.
Mining baron Siddharth Rungta, president of the Federation of Indian Mining Industry (FIMI), has written to the government that the suggestion that tribals be given equity shareholding is not practical.
“A suggestion like this is going to create a great deal of complications and is not practical on the ground. Every company has a different portfolio with different equity holdings. Many companies have benami holdings. Who is going to keep a track on the shareholding pattern in companies, especially as they keep changing?” said Mr Rungta, talking exclusively to this newspaper.
FIMI has suggested that a more appropriate alternative would be that mining companies be allowed to give a share of their royalty towards tribal welfare. “We are already giving royalty to the government so our suggestion is that the government should calculate an additional amount which can be paid to them,” he said.
When asked how much that royalty would work out to be, Mr Rungta refused to be specific and merely said, “There is a different amount being paid for each mineral. These can all be worked out.” Mr Pawan Kaushik, heading the corporate communications of the Vedanta Group, was also non-committal about how the modalities of such a scheme would be implemented.
“We need more clarity on this matter. Is the compensatory amount of Rs 2 lakhs to be paid per year to a tribal a one-time affair or will it a recurring issue?”
Though the Vedanta Group has been facing a great deal of controversy in Orissa, Mr Kaushik admits that the issue of rehabilitation and resettlement must be resolved in order to curb the growing menace of Naxalism.