Home India News New mines bill will benefit Jharkhand: Report

New mines bill will benefit Jharkhand: Report

By IANS,

Ranchi : Jharkhand Deputy Chief Minister Hemant Soren Friday favoured profit sharing of mining by companies with the locals, as proposed by the Mines and Mineral (Development and Regulation) (MMDR) bill 2011 which is yet to be tabled in parliament.

He said: “Jharkhand produces 40 percent of the mines and minerals of the country and it gets only Rs.2,000 crore per annum in form of royalty. The share of Jharkhand is very low and how can a state manage every thing from low fund.”

A Centre for Science and Environment (CSE) survey report Friday said that Jharkhand could have got Rs.1,150 crore in current financial year if the proposed MMDR bill 2011 had been implemented.

“There are 50 mining districts of India which generate more than 85 percent minerals of the country. These districts share 50 percent of the total mines lease area. Around 2.5 million people have been affected in these areas and average poverty in these districts is higher than any other parts of the country,” says the CSE report.

“If the proposed bill is implemented then these district could have got more than Rs.9,000 crore which includes Jharkhand share of Rs. 1,150 crore,” it says.

As per proposed MMDR bill 2011, the mining companies will share 26 percent profit with local communities.

Speaking on the occasion, Chandra Bhushan, deputy director general of CSE, said: “The proposal to share the benefits of the mining with local people is an important step ahead in building inclusive growth model. Many mineral rich countries are following it for many years.”