The mines ministry is in the process of preparing a fresh draft of a new mining Act that would provide for 26 per cent profit sharing by miners with the local community and setting up of a regulator to check illegal mining.
The revised draft would be sent to a Group of Ministers and upon approval will be introduced in Parliament possibly during the ongoing monsoon session, which will conclude later this month, a top official said here.
In the earlier Bill, the provision was made for companies to either share 26 per cent equity or profits with the locals and tribals. However, the equity sharing proviso was opposed fiercely by the industry, especially chamber FICCI.
"We are working very hard to finalise a fresh draft of Mines and Mineral Development and Regulation Act, 2010 (MMDRA) to be placed before the GoM shortly. It would be our priority to introduce the Bill in the current session of Parliament," the mines secretary, Mr Subramanyam Vijay Kumar, told PTI.
The new mining legislation to replace the existing MMDR Act, 1957, will incorporate all the suggestions of the GoM including decision to share 26 per cent of the net profit by mining companies for local community, a senior official said.
The GoM, headed by the finance minister Mr Pranab Mukherjee, constituted in June to examine the Bill met twice on July 20 and July 30 and took a decision that 26 per cent of the net profit of the mining company will go towards the local community which will include every affected person including land-owners and people residing in the area, the official added.
The modalities for use of the net profit for development of the area will be worked out, he said.
Besides the GoM was of the view that instead of 26 per cent free equity in mining ventures to persons, whose land is to be acquired by corporates, they would be given some shares in a symbolic measure to have a say in the management and decision, the official said adding that this was also being incorporated in the new draft.
Asked whether the symbolic representation would have any say, another official said, village leaders and active NGOs will get the right to raise their voice right in front of the chiefs of the companies.
Meanwhile, the date for the GoM meet is yet to be finalised. Besides Mr Mukherjee, it includes the home minister, Mr P. Chidambaram, the steel minister, Mr Virbhadra Singh, the law minister, Mr V. Moily, Mines Minister, Mr B.K. Handique, the commerce minister, Mr Anand Sharma, the tribal affairs minister, Mr K. Bhuria, the planning commission deputy chairman, Mr Montek Singh Ahluwalia, the coal minister, Mr Sriprakash Jaiswal, and the environment minister, Mr Jairam Ramesh.
The new Bill seeks to expedite grant of mineral concessions in an expeditious and transparent manner, besides attracting investments in the sector.
Investment of a few lakh crores of rupees has been delayed because of resistance by land owners to part with their assets. Companies like ArcelorMittal, Posco have been facing protests against land acquisition in Orissa, Jharkhand etc.