New Delhi, April 07: The union ministry of mines hopes to solve two problems with one drastic shift in policy.
Illegal mining has been giving authorities a tough time. Besides, most mineralrich states are affected by Maoist violence and a related alienation among local populations. The ministry is planning to introduce a new set of conditions for the mining sector that will give locals a greater stake in the projects.
According to the proposed changes, the holder of a mining lease will have to allot to locals free shares equal to 26 per cent in the company through the promoter’s quota. In case the lease holder is an individual, 26 per cent of the annual profit after tax would have to be shared with the locals.
The draft proposal says the gram panchayats, the gram sabhas and the district councils will decide the people affected by mining operations who will be eligible for a share in the profits.
“ Currently, the lease holders give a 10 per cent royalty on profit to the state government and undertake to develop the area. But this is not enough because a considerable part of the local population has not benefited much. Moreover, the ministry feels if the local population has a stake in mining activity, it will keep an eye on illegal activities,” said a senior official in the ministry.
Official sources said while granting mining leases, the focus will not be limited to the ownership of the land. They will also take notice of usufruct and traditional rights of the people. While usufruct rights refer to the rights of the people who use land for sustenance though they don’t own it, traditional rights apply to land that is traditionally used as common village land.
According to the ministry officials, the changes in the existing Mines and Minerals Development Act will serve the twin purpose of ensuring that mining profits percolate to the bottom and help curb illegal activity.
The ministry has long been trying to come up with initiatives that would stop the practice. “ Illegal mining has been on the forefront of the ministry’s agenda. We already use satellite pictures to keep a tab on any mining activity that goes on in unauthorised areas. However, if the local populations have a direct stake in mining, they will intervene once the awareness level rises,” said an official.
Officials said most of the mineral- rich areas were also Maoist strongholds, such as those in Jharkhand, Orissa, Andhra Pradesh, Chhattisgarh and Karnataka.
The ministry hoped the new set of provisions would go a long way in removing the sense of alienation in the local populations, which has often been seen as a trigger for the Maoist movement.
The mining procedures are also under the scanner because of the controversy generated by the Madhu Koda episode and the mines being run by the Reddy brothers in Andhra Pradesh.
—Agencies