As much as 26% equity in mines would be disbursed to those displaced by mining activity as the group of ministers deliberating on the draft Mines and Mineral (Development) and Regulation Bill (MMDR) approved of it on Friday.
The GoM has suggested that the ministry move an Ordinance for setting up a regulatory authority in the Cabinet soon. The draft Bill talked of disbursing 26% free shares to those affected by mining activities, mainly tribals in India?s mineral-rich areas. Commerce minister Anand Sharma had earlier suggested a mix of cash and kind as the right methodology to allot shares. The government had been searching for a way in which annuity or revenue stream could be directed to those displaced owing to mining activity. Under this proposal, every member of every family displaced due to mining would be given shares on par in order to make them stakeholders in these enterprises.
While the government seems to have agreed to the proposal, it is expected to be resisted not only by industry bodies but also by a section of the government. While Ficci and CII have put on record their discomfort with the proposal saying that it would discourage further investment by the mining industry, sources in the government feel that the logistics of the proposal could be unworkable. Sources confirmed that the Ordinance would be brought in early before the Cabinet and then tabled in Parliament in the Winter Session.