The Mines Ministry today said it is ready with the final draft of the new Mines Bill and a Group of Ministers will meet soon to review the proposed law amid protests by the industry over provisions mandating 26 per cent profit-sharing with project-affected persons.
The Mines and Mineral Development and Regulation (MMDR) Act will be introduced in the ongoing Winter Session of Parliament, Mines Minister B K Handique said.
"Any day the GOM (Group of Ministers) would be meeting... We have finalised the draft, but some changes will be there. It will be introduced in this session," Handique told reporters.
Asked about any changes in the final draft, he said there was some modification, but warned that the clause for 26 per cent profit sharing by miners with project-affected people was retained in the final draft.
"There are a good deal of changes in the final draft. 26 per cent (profit-sharing clause) -- that is there so far," he said.
Asked about the industry demand for watering down the provisions, he said he has received a letter from Planning Commission Deputy Chairman Montek Singh Ahluwalia, who had indicated that a group of industrialists wanted an opportunity to raise their concerns.
"I have received a letter from the Deputy Chairman, Planning Commission. They have said a group of industrialists wants to meet me," Handique said and added that the GoM, headed by Finance Minister Pranab Mukherjee would take a final call on the draft Bill, which has incorporated all the changes suggested by different ministries.
The 10-member ministerial panel headed by Finance Minister Pranab Mukherjee had arrived at a consensus on the Mining Bill last month, which, among other things, makes it mandatory for companies to share 26 per cent of the profits from mining operations with project-affected people.
For such profit-sharing, the GoM has proposed creation of a District Mineral Foundation for disbursement of the benefits to locals.
The GoM has met thrice so far on the Bill.
Miners body FIMI and companies like Jindal Steel and the Tatas have criticised the proposed levy and asked the government not to charge it as a separate tax, saying that social obligation is a part of the operating cost of a company.
The new Bill also seeks to expedite the grant of mineral concessions in a transparent manner and attract big-ticket investment in the sector.
