New mining Bill on anvil

New Delhi : The group of ministers (GoM) spearheaded by Finance Minister, Pranab Mukherjee, has recently cleared a new Mining Bill incorporating a mechanism of profit and royalty sharing by the industry with the project affected masses of the country. The Bill is being introduced in the Monsoon Session of Parliament before taking mandatory approval from the Cabinet, Minister of State for Mines, Dinsha Patel, said adding that in the new Bill, apart from effecting other changes, the government is also keen to attract huge foreign direct investment in the mining and mineral sector ensuring resources exploitation to the hilt.

It may be recalled that the mining industry had vehemently opposed the government's initial proposals on profiting sharing and as an alternative suggested creating of royalty linked fund for the welfare of the affected people. In the initial proposals the government has made 26 percent mandatory profit sharing and the upcoming legislation MMDR Bill 2011, among other things, seeks to expedite the grant of mineral concession in a transparent manner. It also proposed the setting up of a National Mineral Regulatory Authority for effective regulation in the sector to deal with the growing menace of the illegal mining and seeking to set up Tribunals at both Centre and State levels for speedy clearance and disposals of mining applications. It also seeks to give an impetus to sustainable mining by making it mandatory for the mining companies to disclose their mines closure plans before commencing operations, he claimed.