The government today decided to make the local populace stakeholders in mining. The decision, taken in a meeting of the Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee, sought to end the debate on how to make the predominantly impoverished tribals benefit from mining.
While some members of the GOM had suggested that the people should be given a part of the annual profits, the draft bill itself provides that 26 per cent equity participation be mandated in case of companies.
“The affected local population can be given shares at par to make them owners in mines and making them shareholders. For example, every person of an affected family can be given a share,” said Mining Secretary Santha Sheela Nair. “The 26 per cent equity has to translate to some definite amount.”
The ten-member GoM set up last month comprises Home Minister P Chidambaram, Steel Minister Virbhadra Singh, Law Minister Veerappa Moily, Mines Minister B K Handique, Commerce Minister Anand Sharma, Tribal Affairs Minister Kantilal Bhuria, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Coal Minister Sriprakash Jaiswal, and Forests Minister Jairam Ramesh.
The panel was set up to discuss the provisions of the draft legislation – Mines and Minerals Development and Regulation Act, 2010 – to govern the sector.
“The proposal has been accepted in principle, whether it happens through 26 per cent equity or 26 per cent profit has to be decided,” said Nair, refusing to divulge more details.
Another major decision taken by the GoM today was to set up a central agency to ensure putting checks on rampant illegal mining in the country.
Nair attributed the occurrence of illegal mining activities to delays in renewal of concession agreements. “These delays force companies to continue mining without licenses. So, the GoM has decided to set up an agency which will work as a tribunal or a regulatory authority to enforce the tightening of the mechanism of granting mineral concessions. This was implicit earlier but has been made explicit now.”
