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| Edited By: Neeraj Thakur |Source: DNA |Updated: Mar 17, 2018, 04:53 AM IST
In a move that would irk corporates such as ArcelorMittal, the world’s largest steelmaker, a group of ministers (GoM) appointed to finalise the draft of Mines and Minerals Development and Regulation Act 2010 is ready to implement a clause that moots offering 26% equity to local people in mining projects.
The condition was vehemently opposed by mining companies and industry body Ficci. The GoM has also sorted out the differences between the ministries of mines and steel over the issue reservation of areas by government to grant prospecting/mining lease for public sector undertakings.
“There was some discussion about 26% equity sharing and on how best we can ensure that revenue/ income go to the people affected by mining. We looked at what finetuning can be done so that it (the 26% clause) does not remain on a piece of paper and is translated into actual income for people who have lost their land and livelihood because of mining,” said Santha Sheela Nair, secretary of mines and minerals.
On Thursday, ArcelorMittal chairman L N Mittal had told news agency PTI, “(it is) very difficult to make a comment on whether it is positive or negative, but I think instead of equity participation there should be a fair settlement in acquistion of land.”
Mittal, is planning to start work on one of his Rs 1.3 lakh-crore project in India in early 2011 for which several mining leases are required.
Ficci secretary general Amit Mitra in a letter to the finance minister had said that “investments in the sector would take a hit as “no shareholders would like to invest where 26% of the shareholders do not make any contribution to the company.”
The GoM has also approved setting up of a tribunal that will look after de-reservation of of land for the public sector undertakings. The steel ministry was of the view that reservation of areas by government to grant prospecting/mining lease for public sector undertakings should continue.
Now the decision would be taken by the Tribunal and would be acceptable for all. The same tribunal would be in-charge of renewing licensing agreements with the firms and for checking illegal mining.
