BUSINESS

New Mines Bill to be sent for Cabinet approval

FIMI claims it will affect miners to the tune of Rs.15,000 cr

The Union Mines Minister, Dinsha Patel, on Monday said the landmark new draft Mines and Mineral Development and Regulation Bill, 2011, which provides for profit sharing and royalty provision for affected people, would be sent for approval of the Union Cabinet within a fortnight.

The Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee had last week approved the draft bill which provides 26 per cent profit sharing by coal mining companies and 100 per cent royalty sharing by others with project-affected people. “It will take a few days to prepare the minutes of the meeting of GoM held last week. After giving the final touches and incorporating the approved articles of GoM, it will be sent to the Union Cabinet for seeking approval in the next 15 days,” Mr. Patel told reporters here.

Speaking on the sidelines of annual general body meeting of the mining industry body, Federation of Indian Mineral Industries (FIMI), Mr. Patel said the draft Mines and Mineral Development and Regulation (MMDR) Bill, 2011, was likely to be tabled during the monsoon session of Parliament. Asked about the volte-face by the Mines Ministry over changing the proposal of 26 per cent profit sharing clause to 100 per cent royalty by non-coal mining companies with affected people, he said it was a unanimous decision taken after consulting almost all stakeholders. “There were several representations on having 26 per cent profit sharing clause. So after consulting different stakeholders, we felt that there is a need to change as it would have made accounting and other calculations difficult. I told this to Mr. Mukerjee and other GoM members. They all were in agreement without our changed proposal,” the Mines Minister added.

However, he said there was unlikely to be any further changes in the draft Bill, which also proposes to levy State and Central cess on royalty paid by the miners. “I don't think there will be any need to make changes further as this has been prepared after consulting almost all stakeholders. The new draft has support of every body, including FIMI,” he said.

FIMI President Siddharth Rungta claimed that it would cost the mining industry between Rs.12,000 crore and Rs.15,000 crore. “We had suggested an amount equivalent to 26 per cent of royalty paid should be shared with the project affected people. The GoM increased it to 100 per cent for non-coal companies which will impact the miners to the tune of Rs.12,000 crore to Rs.15,000 crore,” Mr. Rungta said.



Likely to be tabled in the monsoon session

Proposes to levy State and Central cess on royalty


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