GoM likely to meet tomorrow to finalise draft mining Bill

The Group of Ministers (GoM) on mining headed by Finance Minister Pranab Mukherjee is likely to meet in two days to take a final view on the policy regarding sharing of miners’ profits with the local populace. With this, the government seeks to end the debate on how to make the benefits of mining reach the predominantly impoverished tribal population.

“We have to finalise the text. The final sitting of GoM will be held in a day or two,” said Mines Minister B K Handique. “The Parliament session is still on. It is only a matter of introduction which takes only 5 minutes,” he added.

The 10-member GoM, set up in June, will take a final view on the new mining Bill, which proposes that miners share 26 per cent of their profits with those affected by projects. In addition to profit sharing, measures to check the rampant illegal mining across the country also form a part of the provisions in the new Mines and Minerals (Development and Regulation) Bill, 2010.

Handique also clarified that the proposal of 26 per cent profit sharing by miners is unlikely to be diluted as there was large consensus among the members of GoM on the issue. “Everybody supports the 26 per cent profit-sharing proposal. It is likely to be retained in the final version of the draft. Although a hue and cry was made by the industry, there is no pressure on me,” he said.

Private sector mining companies have been opposing the 26 per cent profit-sharing provision. Tatas, which run private sector giant Tata Steel, had recently stated that the government should not charge the profit shared as separate tax as social obligation forms a part of the operating cost of the company. At least two state-owned public sector undertakings — Hindustan Copper and Manganese Ore — too have listed the Bill as one of the internal risk factors mentioned in their draft offer documents filed with Securities and Exchange Board of India.

Reacting to recent reports that the governments of Orissa and Chhattisgarh have conveyed their concerns to the mines ministry, Handique said: “We have discussed the provisions of the Bill with Orissa and Chhattisgarh. They have not opposed the Bill. They have certain views and we are always open to accepting others’ views. Their views were based on the old draft. But, in the meantime, the draft has changed six times.”