Cites practical problems as captive mines are not accounted separately in books.
State-owned Steel Authority of India Ltd (SAIL) is opposed to a proposal that miners should share 26 per cent of their profits with people displaced by the mines. “We cannot be okay with this proposal. There are practical issues that need to be resolved,” SAIL Chairman C S Verma said on the sidelines of a seminar on raw materials organised by the Mining, Geological and Metallurgical Institute here today.
Verma’s resistance to the proposal comes a day after a group of ministers approved the draft Mining Bill which incorporates this proposal. Verma said there are practical problems with the proposal because captive mines are not accounted separately in a company’s books, and hence the calculation of their profits is difficult. SAIL is the largest producer of steel within the country. Apart from Tata Steel, it is the only steel maker in the country that has its own iron ore mines.
On his part, Steel Minister Virbhandra Singh, who is a member of the group of ministers, defended the proposal and indicated that there could be many more rounds of discussion before it is implemented. “The group of ministers has just approved the proposal. It will now go to the Cabinet and will then be placed before the houses of Parliament. It is possible that it could be referred to the state committee from Parliament. Some consultations will take place. This is just the beginning,” he said. Asked if 26 per cent share in profits for locals was justified, Singh said: “Some sort of levy was necessary. I have an open mind on this.”
Even as SAIL spoke against the proposal, Tata Steel came out in its support. “Large tracts of land are acquired for mining purposes. Invariably, issues over land acquisition crop up. The prime objective of industrialisation is to improve the quality of people’s life. I am happy that the government has decided to mandate a certain percentage of profits for local people,” Tata Steel Vice-chairman B Muthuraman said while delivering the Holland Memorial Lecture at the seminar.
Muthuraman added that apart from profit-sharing, activities around the displaced people should be undertaken as well. “We agree to the proposal in principle. Accounting issues can be resolved,” Muthuraman later clarified.
Cites practical problems as captive mines are not accounted separately in books.
The ten-member group of ministers was constituted in June to discuss the provisions of the Mines and Mineral (Development and Regulations) Bill. Headed by Finance Minister Pranab Mukherjee, it includes Home Minister P Chidambaram, Law Minister Veerappa Moily, Mines Minister B K Handique, Commerce Minister Anand Sharma, Tribal Affairs Minister Kantilal Bhuria, Planning Commission Deputy Chairman Montek Singh Ahluwalia, Coal Minister Sriprakash Jaiswal and Environment and Forests Minister Jairam Ramesh, apart from Singh. Industry associations and trade bodies have made their reservations on the proposal public
