Tata Steel today supported sharing profits of mining with people affected by projects.
"It is a move in the right direction if implemented in the right way," Tata Steel Vice-Chairman B Muthuraman said while speaking at a seminar.
Muthuraman said "activities" carried out by a company around a mine should also be considered as a cost before calculating profit.
A Group of Ministers, headed by Finance Minister Pranab Mukherjee, yesterday reached a consensus to give a go- ahead to the draft mining bill, which seeks that miners share 26 per cent of profits with local people who get affected by their projects.
He said mineral policies should be formulated for long term such as 40-50 years.
He was also in favour of large scale mining for long- term economic and environmental viability.
"Companies should join for joint large-scale mining. Majority of international mining is large-scale and it needs government intervention to do this," he said.
