New Mines Bill to be tabled in Parliament in winter session

The new Mines Bill, which provides for sharing of profits and royalty with project-affected people, is likely to be introduced in the winter session of Parliament, a senior official said.

The Bill, earlier supposed to be tabled during the just concluded monsoon session, has not yet been placed before the Cabinet despite the fact that it was approved by a ministerial panel in July.

For the non-coal miners, the new law will provide for payment to the displaced an amount equivalent to royalty paid to the state government.

The draft bill also proposes to set up a district development fund, where the money accumulated from the 26% profit sharing by coal miners and an amount equivalent to 100% of royalty for non-coal miners, will be deposited and will get spent on local population and area development, the draft bill has proposed.

Apart from compensating the displaced people through profit-sharing and royalty, the draft bill also says that the mining firms will have to bear a combined cess up to 12.5% on the royalty paid to states and the Centre, as per the new mining bill.

This includes 10% cess to state governments on the royalty payment, while 2.5% levy will be charged by the Centre as cess.

However, industry chambers like Ficci and Assocham are opposed the draft bill, saying that it would make India most-taxable country for the miners.

It has also projected that taxes for bauxite mining,would zoom to 110%.