Draft mining Bill gets GoM approval

26% profit-sharing with locals in mining projects

The Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee today approved the draft mining Bill, which will provide for sharing 26 per cent of company profits with local populace in mining projects.

“So far as the GoM is concerned, it was the last meeting. All the concerns have been addressed and there are no major changes in the final version of the draft,” mines minister B K Handique said after the fourth meeting of the GoM that concluded late in the evening today. The Bill is likely to be tabled in the ongoing winter session of Parliament.

It is learnt that in order to address the concerns of resource-rich states like Jharkhand and Orissa over adequate compensation and traditional rights over minerals, the GoM has asked the ministry to strengthen the clause that provides for competitive bidding for grant of mining leases. States were fearing that the new legislation would provide for adopting a first-come-first-served route for granting large area prospecting licences instead of competitive bidding. Mining Secretary Vijay Kumar, however, clarified that according to section 13 of the Bill, “wherever there is mineralisation, the area will have to be notified and bid for. That is the ruling provision.”

He also reiterated that states’ concerns had been addressed fully in the Bill. The approved draft will now be sent to finance minister for his final approval after which it will be placed before the Cabinet.

Apart from Mukherjee and Handique, the 10-member GoM had home minister P Chidambaram, steel minister Virbhadra Singh, law minister M Veerappa Moily, commerce minister Anand Sharma, tribal affairs minister Kantilal Bhuria, Planning Commission Deputy Chairman Montek Singh Ahluwalia, coal minister Sriprakash Jaiswal, and environment minister Jairam Ramesh.