Mining industry may restructure to minimise benefit-sharing impact

New Delhi : The benefit sharing mechanism proposed for the mining sector could see companies restructuring operations in an effort to have a lesser impact on their top line once the new regime is in place. A 10-member ministerial panel had in early July finalised such a mechanism, to be part of the new mining legislation. Experts and sector insiders have already started raising concerns over its far-reaching impact. “It would make companies devise manipulations and re-structuring of their operations in an attempt to separate mining from other activities. Companies would like to ensure that the operations of an entity, profits of which are being shared, are kept to bare-bone mining,” said Amrit Pandurangi, senior director, Deloitte Touche Tohmatsu.