- 26% share in mining profits for tribal and project affected people. The MMDR bill aims to introduce better legislative environment for attracting investment and technology in mining sector by the following-
- The bill requires every person to obtain a license or lease for carrying on mining or related activities.
- The bill provides for 2 method of granting a mineral concession- competitive bidding and first come first serve.
- A district mineral fund (DMF) will be established in each district where there are mining operations to make payments to affected persons.
- Mining leaseholders will be paying an annual amount to DMF for benefit of affected persons. (26% profit in case for coal and royalty for other minerals.)
- Mining leaseholders will be liable to provide annual compensation and at least one non-transferrable share to persons affected by mining operations.
Key issues
- The bill permits concession in tribal areas to non tribal which is conflicting SC judgments on legality of such provision.
- The bill mandates the issue of a non transferable share to affected person which is against companies act 1956 which does not permit issuance of non-transferable shares.
- Any gap in minimum compensation to be paid to affected families by DMF is to be covered by state government which put pressure on state government finances.
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