Plan panel to moot new relief formula for land losers

The Planning Commission is likely to moot a new formula to compensate land losers in mining projects, whereby the displaced will get an upfront payment from mining companies.

The commission would suggest the plan to the mining ministry shortly, and a clear picture was likely to emerge in the next two weeks, Planning Commission Member Arun Maira said on the sidelines of a seminar by the Institute of Company Secretaries of India (ICSI) here today.

The Mines and Minerals Development and Regulation (MMDR) Act calls for 26 per cent of profits to be spent on land losers or making them shareholders. But, Maira said an upfront payment, which could be calculated on the same basis as royalty to be paid by the company in lieu of mining to the government , was a better idea.

“The companies should set aside an amount, which could be in relation with the royalty they pay, to the displaced people. That could be paid even before the royalty is paid,” said Maira.

Plan panel’s suggestion assumes significance in view of the recent row between Vedanta and the environment ministry over mining in Niyamgiri hills of Orissa.

The Ministry of Environment and Forests (MoEF) recently rejected the application for grant of Stage-II forest clearance to the Orissa Mining Company (the Vedanta project), citing the company’s non-compliance with a number of laws.

The Commission was also of the view that forming local bodies with representatives of the government, the companies concerned and the locals to sort out compensation-related issues could be considered.