A new Mines Bill that provides for profit and royalty sharing with project affected people was introduced in the Lok Sabha on Monday.

The Minister of State for Mines, Mr Dinsha Patel, introduced The Mines and Minerals (Regulation and Development) Bill, 2011, that seeks to replace more than half-a-century-old law under the same name.

As per the provisions of the Bill, coal and lignite companies will have to pay an amount equal to 26 per cent of their previous year’s profit from mining operations to the District Mineral Foundation for the welfare of the project affected people. The non-coal mining firms will have to pay an amount equivalent to the royalty paid for the financial year towards the same.

The Bill provides for a simple and transparent mechanism for grant of mining lease or prospective licence through competitive bidding in areas with known mineral deposits and on the first-in-time in areas where mineralisation is not known.

It also enables advanced technology adoption for exploration of deep-seated and concealed mineral deposits and empowers State Governments to cancel the existing concessions to prevalent illegal and irregular mining.

The new Bill also enables registered co-operatives for obtaining mineral concessions on small deposits to encourage tribals and small miners to take up mining operations. Besides, it also empowers the Central Government to institute a statutory mechanism to promote sustainable mining, set up National Mining Regulatory Authority to advise Government on royalty rates, benefit sharing,conduct investigation and launch prosecution in cases of large-scale illegal mining.

Related Topics
comment COMMENT NOW