Mines Bill seeks holistic reforms in the sector: UPA report

NEW DELHI: The new Mines Bill aims at introducing holistic reforms in the mining sector, the UPA government today said in a report.

"The Mines and Minerals (Development and Regulation) Bill, 2011 to replace the existing MMDR Act, 1957 ... seeks a complete and holistic reform in the mining sector," said in the "Report to the People 2011-12" which marks the completion of three years of the UPA-II government.

The Bill has provisions to address issues relating to sustainable mining, local area development and sharing of benefits with the people affected by mining operations, it said.

The MMDR Bill, with a provision to share 26 per cent of the profit by coal miners with the project affected people and amount equivalent to 100 per cent of royalty for others, was introduced in the Lok Sabha on December 12 and later referred to the Committee for in-depth scrutiny.

The Bill proposes to set up a district development fund, where the money accumulated from the 26 per cent profit sharing by coal miners and an amount equivalent to 100 per cent of royalty for others, will be deposited and spent on local population and area development.

The profit sharing clause has been opposed by the industry.

The Cabinet had approved the long-pending controversial draft bill on September 30. It will replace the 54-year-old legislation governing the sector, as it was felt that the existing laws have not provided a fair deal to those affected by the mining projects and the leases were not given in a transparent manner.

Listing achievements of the Mines Ministry, the govenment said it has prepared a detailed Strategic Plan document "Unlocking the Potential of the Indian Minerals Sector" in order to systematise the functioning of the Ministry and align it more directly with the vision emanating from the National Mineral Policy.

Besides, it said the National Aluminium Company (NALCO) has signed a Joint Venture agreement with Nuclear Power Corporation of India (NPCIL) to build a nuclear power plant of 1400 MW at Kakrapar Gujarat.

The company would be initially investing Rs 894 crore towards 26 per cent equity, which would be subsequently enhanced to 49 per cent.