Cement, Energy and Environment

.~ ' -- for making people employable is also a cost. By that logic, maybe some companies already spend a considerable amount towards the local population," he said. The royalty paid by the companies which is meant to be used for development of the region, goes to the Consolidated Fund of India. The obvious question is, if the scheme has failed to iron out development– related problems. why should the outcome of the District Development Fund be any different? The amount that companies would have to shell out is staggering , but that is just one of the many problems For metal companies. the accountmg is likely to be complicated. "How will it be done? What will be the transfer pricing?" asked Sterlite's Finance Director. Tarun Jain. Courtesy. FIMI (Federation of Indian Mineral Industries) News Bulletin 15th October. 2010, Pp19-20. MINING FIRMS WILL HAVE TO PAY25PERCENTMOREFOR LAND, REHABILITATION: BHURIA Companies planning mining projects will have to pay 25 per cent mule for land and rehabilitation of tribals. "We have suggested an additional compensation where there is large sca le displacement of tribal and they need to be settled outside the district of their origin," tribal affa irs Minister Kanti Lal Bhuria told ET. "Additional money will be used to create infrastructure to protect identity and traditions of tribal." The proposal has already been discussed by the group of ministers that is finalizing the draft mining legislation and has been widely accepted by all members, said Mr. Bhuria. This move will be in addition to the prov1s1ons contained in the Forest Rights Act that protects traditional rights of tribes. The proposal on special dispensation for tribals will not only be restricted to mining operations but will cover all activities that lead to large scale displacement of tribes . It will be a one-time advance payment for initiating rehabilitation before the start of a project. However. the government has also adopted a cautious approach. "We do not want to come in the way of development projects. If people collectively favour a project, government will not come in between ," said Mr. Bhuria. Apart from higher compensation, the tribal affairs ministry is also mulling to create 'go and no go' zones across the country involving areas with thick concentration of tribes . Though the categorization will desist investors from proposing projects in 'no go' areas . if the tribes favour a particular project development activities will be permitted . While the draft Mines and Minerals (Development and Regulation) Bill, 2010 will address concerns of the triba l population, the ministry of tribal affairs has also drafted a Tribal Policy that will add ress severa l other concerns of the section besides empowering central ministry to have a say in all development projects involving tribal areas. The GoM may also make approval of local panchayats mandatory for mmmg projects. Moreover, reference to fifth and sixth schedule of the Constitution for mining projects would mean that min ing in tribal areas could be done only by government companies (Central or state government on concurrence with tribal panchayats) or by cooperative societies formed in villages or district councils affected directly or indirectly by the proposed mining operations. Courtesy: FIMI (Federation of Indian Mineral Industries) News Bulletin 15th October, 2010. Pp20-21 NEW MINING LAW NOT THREAT TO LOCALS: MINES SECRETARY Mines secretary S Vijay Kumar said the proposed mining law that seeks to make it mandatory for companies to share 26 per cent of profit from mm1ng projects with the displaced will instill confidence in locals that mining is not a threat to their existence. "The new Mining Act puts emphasis on the need for a social license to mine...we want them to feel that min1ng is not a threat to their existence but is possibly an opportunity for their development," Mr. Kumar said , addressing Canada India Mining and Metals Forum 2010 at Toronto. The government hopes the new law would attract greater pri vate and foreign investments in the sector, he said, adding, "There is a very large set of people that now feels that the act is sufficiently reformist, and sufficiently detailed in respect to environmental and social issues, which the old act did not address." PTI. Courtesy: FIMI (Federation of Indian Mineral industries) News Bulletin 15th October, 2010, P21. 85