The Union Cabinet on Friday approved the Mines & Mineral Development and Regulation Bill that calls upon the miners to share profits and royalty with the locals.Coal mining companies have to share 26% of their profit with the local population, according to the new Mining Bill.
Coal mining companies have to share 26% of their profit with the local population, according to the new Mining Bill.
Non-coal mining companies would have to share an amount that is equivalent to 100% of the royalty outgo. The New Mining Bill is expected to be introduced in the next session of Parliament, according to reports. The original plan was to impose a 25% levy on all mining activity. But, that plan was dropped by a Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee. The new Mining Bill is likely to badly affect the operations and finances of public sector giant Coal India Ltd. The funds raised from the mining companies are proposed to be spent across 60 tribal-dominated districts in Jharkhand, Chhattisgarh, Orissa, Madhya Pradesh and Karnataka. Each district in these mining rich states is likely to get Rs. 1.8bn on an average every year
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