Mukherjee for balanced approach to tribal displacement from mining projects

Finance minsiter Pranab Mukherjee is in favour of a balanced approach on the tribals displacement issue relating to mining projects, and says that the solution did not lie in calling an outright halt to the projects.

''Answer does not lie in the companies stopping mining activities. Answer lies in providing alternatives to those displaced... in what form we can compensate them and make them beneficiary of economic development,'' Mukherjee said at a coal summit yesterday.

Mukherjee's comments come within a month of environment ministry's rejection of earlier clearances to Vedanta's Rs7,000-crore bauxite mining project in Orissa for violation of green and tribal norms.

The ministrys stand has also seen the land acquisition process for Posco's Rs54,000 crore steel project stalled in the state for similar violations. A finance minister led- Group of Ministers (GoM), is deliberating a proposal to extend profits to tribals as a part of profits in mining projects.

''We are addressing this issue,'' he said. According to the GoM's proposal 26 per cent of the net profit from mining projects should go to the displaced tribals and other affected locals but differences in the government remain.

Coal minister Sriprakash Jaiswal yesterday said that the proposed on 26 per cent profit sharing by mining companies should be made mandatory for all public and private companies.