Profit share bill pinches mine, metal stocks hard

Kolkata : BSE metal index falls to 14,963.75; user industry remains a worried lot. Metal and mining companies were hammered in the stock markets on Friday, a day after a Group of Ministers (GoM) approved a benefit-sharing regime for those affected by mining projects.

The Coal India (CIL) stock was the worst hit. It fell more than 8 per cent to Rs 362. NMDC, India's largest iron ore miner, fell 2.55 per cent to Rs 258.15. Sesa Goa, part of the Vedanta Group and the country's leading private sector iron ore miner, fell 4.17 per cent to Rs 12.25.

The draft of the Mines and Minerals Development & Regulation (MMDR) Bill, 2010, says coal companies should pay 26 per cent net profit to those affected by their projects. Other mining companies should pay 100 per cent of the royalty paid in the previous year, it says. This will cover captive users as well. The outgo in case of profit-sharing would be Rs 9,000 crore a year.