The Center for Science and Environment’s report on profit sharing in mining with local communities comes out in support of government’s recent proposal to share 26 per cent net profits with the idea that this will go a long way in reducing poverty and deprivation in the mining affected areas. It states that the mining industry’s opposition to the proposal has no basis - statistics prove that sharing profits will not dent the industry’s profitability.
The central government has come out with a draft Mines and Minerals (Development and Regulation) Bill, 2010 (MMDR Bill) to replace the 1957 Act. The draft bill which has been vetted by a GoM, includes this provision of sharing benefits. The CSE analysis comes out in strong support of this proposal, and clearly establishes how timely and necessary this provision is.
Mining companies and industry in general have been opposing the government’s recent proposal. Their contention is that this provision, if passed by Parliament, would drastically dent their profitability.
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