JSW Steel today supported the government's proposal to mandate firms to share 26 per cent of profits from their mining projects with the people affected by them, but said its implementation will be "challenging".
The company joined its peers like Tata Steel and Jindal Steel and Power to seek level playing field for private players in the new regime being finalised, amid demands for giving concessions to PSUs on the profit-sharing proposal.
"It is a good concept but my concern is that it's implementation would be quite challenging. So one needs to find out what could be easier method whereby it could be implemented. ...There should be a level playing field for public and private sector," JSW Steel VC and MD Sajjan Jindal told PTI on the sidelines of a conference here.
The government is in the process of framing a new law -- Mines and Mineral Development and Regulation Act -- making it mandatory for miners to share 26 per cent of profits with local people affected by their projects.
JSW's views come on the heels of global major Tata Steel and industrialist Naveen Jindal-led JSPL raising doubts on the implementation of the scheme.
Mines Minister B K Handique had said yesterday that the new legislation was aimed at benefiting tribals and not corporate giants like Tatas or Jindals. He also ruled out diluting the rules in favour of PSUs.
On the steel ministry's suggestion to provide concessions to PSUs on profit-sharing, Jindal said, "There should be a level playing field for PSUs and private sector."
Steel Minister Virbhadra Singh had said the ministry may seek concessions for state-owned firms like SAIL and NMDC from the profit sharing proposal, put forth in the draft bill, as the PSUs have been fulfilling social obligations for long.
The Steel Ministry's suggestion was opposed by the Coal Ministry.
Handique said a Group of Ministers (GoM), constituted to discuss the draft mining bill, reached a consensus on the new legislation, which proposed profit sharing by miners.
The 10-member GoM, headed by Finance Minister Pranab Mukherjee, was constituted in June amid ministerial differences on the proposed bill and had met thrice before giving it the go-ahead.
It is expected to meet next month to finalise the proposal, paving the way for the bill to be placed before the Cabinet. The Mines Ministry hopes to introduce it in Parliament in the winter session.
