Ministers panel approves profit-sharing plan for mines

The group of ministers (GoM) has approved the draft mining bill that proposes sharing of 26 per cent of mining firms' profits with local people.

The GoM headed by finance minister Pranab Mukherjee today approved the draft mining bill, despite opposition from mining companies.

The profit-share is proposed to be distributed directly through district committees.

The ministry of mines plans to introduce the bill that would replace the Mines and Mineral Development and Regulation Act, 1957 in the winter session of Parliament.

While there was a broad consensus amongst the GoM on the new Mining Act, the GoM is expected to meet again later in the month to bridge some gaps.

"All our suggestions have been by and large approved," the mines minister BK Handique said, adding, there could be one more such meeting, after which it would be sent to the cabinet.