Differences surface within govt over mines profit-sharing

Differences within the government came to the fore today with Coal Minister Sriprakash Jaiswal brushing aside the Steel Ministry's suggestion for giving concessions to PSUs in the proposed law for 26 per cent profit-sharing with people displaced by mining projects.

There are differences between two of the PSUs concerned -- Coal India and SAIL -- as well on the issue.

"Definitely, it should be there," Jaiswal said when asked whether there should be a level playing field for PSUs and private players under the profit-sharing regime.

He added that there is no proposal before the Group of Ministers to give concessions to PSUs. A Group of Ministers headed by Finance Minister Pranab Mukherjee is considering a proposed new mining law which provides for sharing mining profits with affected people.

Jaiswal's views are in contrast to Steel Minister Virbhadra Singh's demand for giving a "special consideration" to PSUs like SAIL and NMDC.

Singh said the PSUs deserve differential treatment, as they have been continuously committed to fulfilling their social responsibility obligation.

"Some special consideration has to be given to PSUs for the historical role (in social obligations) being undertaken in different parts of the country," he had said earlier this week. Singh had supported the demand by the SAIL for differential treatment.

However, Coal India Ltd, does not toe SAIL's line. CIL Chairman Partha S Bhattacharyya supported the proposed policy initiative for "distributive justice" to the local people displaced or affected by mining projects.

"We are not seeking any concession in profit-sharing," Bhattacharyya said.