The Union Cabinet cleared a new bill on regulating and developing mining on Friday which will mandate coal companies to
provide 26% of post-tax profit for the welfare of affected people, a move intended to benefit mostly tribals.
The Mines & Minerals (Regulation and Development) Bill, 2011, which seeks to replace a 1957 act, also provides for setting
up of National Mining Regulatory Authority and Tribunal and formation of District Mineral Foundations in 60 mineral-rich
districts across the country.
The states will also be advised to set up authorities and tribunals on these lines. The Bill, which advocates "sustainable
and scientific" mining, also suggests non-coal miners like bauxite and iron ore firms to share an amount equal to that of
royalty with local residents instead of just sharing profits.
Mines minister Dinsha Patel said the 100 % royalty to be received from mining will go to the district mineral fund and 26%
to coal mining. He said the process will be made simpler to increase investment in mining sector.
"We get Rs 4,500 crore royalty but after the new bill we will get Rs 8,500 crore as royalty, which will be completely used
for local development like — availability of roads and drinking water, handling health issues, building a school and
others," Patel added.
A 10-member ministerial panel set up in June last year, has finalised the methodology ensuring that people in mineral-rich
districts of Andhra Pradesh, Orissa, Chhattisgarh, Goa, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Uttar
Pradesh and West Bengal get monetary benefits from the mining.
An estimated amount of Rs 10,000 crore will be generated per year from the miners and an average amount of Rs 180 to 200
crore will be distributed among District Mining Foundations of 60 mineral rich districts that include 25 districts affected
by Left Wing Extremism.
Calling it "a revolutionary step", a Government official said the UPA dispensation was committed towards the welfare of the
villagers and families, particularly tribals affected by mining activities.
The bill is expected to be introduced in the Winter Session of Parliament, the official said.
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