A new Mines Bill that provides for sharing of profits and royalty with project-affected people has been cleared by Cabinet, mines minister Dinsha Patel said. It has provisions for 26% profit-sharing by coal miners and an amount equivalent to royalty by others with project- affected people.
As per the provisions of the Bill, coal mining companies will have to share 26 per cent of the profits from their mines with people impacted by projects. In the case of non-coal miners, the new law will provide for payment of an amount equivalent to royalty paid to the state government to project-affected persons. A Mineral Development Fund will be created in every district, in which profit and royalty shared by miners will be deposited and spent on the local population and area development.The new Bill also obligates mining firms to pay a 10% cess to state governments and 2.5% to the Centre on the total royalty paid.It has punitive provisions to prevent illegal mining.
Related Facts
Ministry of Mines is responsible for survey and exploration of all minerals, other than natural gases, petroleum and atomic minerals, for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc. and for administration of the Mines and Minerals (Regulation and Development) Act, 1957 in respect of all mines and minerals other than coal, natural gas and petroleum.
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| 30-September-1989 | INS Shalki, India's first indigenously built submarine, launched in Bombay. |
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