The Planning Commission is not in favour of the profit sharing proposal mooted in the new mining Bill.
Profit sharing might not be the best way to compensate people, as a company may have lesser profits or no profits, said Arun Maira, member, Planning Commission. “When the Bill comes for Cabinet approval, we will give our views,” he said.
The Planning Commission is in favour of an upfront payment to land losers, which could be linked to the royalty to be paid by the company to the government for mining rights. The Commission has also suggested formation of local bodies with representatives of the government, the companies and the affected people to tackle compensation related issues.
“It is not a good idea to compensate the land losers on the basis of profits. A company may not make profit or declare it. We have suggested the compensation they pay should be fixed on the basis of royalty. This way, the issue of captive mines can also be addressed,” said Maira.
