The Union Cabinet has approved the draft mining bill that would not require profit-sharing with local communities and royalty payments to advocate “sustainable and scientific” mining across the country.
The proposed bill mandates give away of 26% profit pie of coal miners towards the welfare of the tribes and displaced population in the region. This news has seen the share price of CIL slump by over 4% to Rs.335 per share on the bourses.
The newly proposed Mines and Minerals (Regulation and Development) Bill, 2011, provides for setting up of National Mining Regulatory Authority and Tribunal and formation of District Mineral Foundations in 60 mineral-rich districts across India.
In a bid to attract higher investment and circumspect clauses, the draft law seeks to speedup the approval process of land clearances.