Coal prices may go up once miners start sharing 26 per cent of their profits with people affected by their projects, coal minister Sriprakash Jaiswal said.
The Union cabinet is expected to soon approve the profit-sharing proposal, Jaiswal said on the sidelines of a meeting.
The proposal is part of the mines and mineral (development and regulation) amendment bill. The draft bill, which is with the empowered group of ministers, led by finance minister Pranab Mukherjee, is likely to be tabled in the winter session of Parliament.
“The government has taken this bold and important decision because it is only by compensating landlosers adequately you can pacify the unrest created by the Maoists and other such outfits. The coal ministry is completely in unison with the government on this,” Jaiswal said, adding that land acquisition, rehabilitation and relocation had become a major problem.
Once implemented, the 26 per cent profit-sharing clause will apply to existing mines as well. “But for existing mines, the company will have to share from its future profits.” This means that the clause will not be implemented on a retrospective basis.
According to Jaiswal, the ministry is coming out with a new policy to distribute small and isolated coal seams that Coal India finds uneconomical. However, he said abandoned mines would not be brought under the competitive bidding route. “We have given out such mines for redevelopment through global tenders and the same process will be followed in the future.”
On the distribution of coal blocks through competitive bidding, he said, “The ministry has already allocated 208 blocks for captive use. Of these, only 26 have commenced operations. The pace of development of the allotted blocks has not been as desired. So the government has decided to auction blocks to attract serious players for speedy development.”
Illegal mining
Jaiswal has squarely put the onus on state governments to check illegal mining.
“Coal ministry cannot keep a vigil on thousands of kilometers of mining areas. In fact, the ministry doesn’t have the wherewithal. State governments have the police and other machinery at its disposal to stop illegal mining. It is the responsibility of state governments to protect government properties,” he said.
“Illegal mining is very low in Maharashtra, Madhya Pradesh, Chhattisgarh and Orissa but it is quite high in Bengal and Jharkhand,” the minister added.
The Union cabinet is expected to soon approve the profit-sharing proposal, Jaiswal said on the sidelines of a meeting.
The proposal is part of the mines and mineral (development and regulation) amendment bill. The draft bill, which is with the empowered group of ministers, led by finance minister Pranab Mukherjee, is likely to be tabled in the winter session of Parliament.
“The government has taken this bold and important decision because it is only by compensating landlosers adequately you can pacify the unrest created by the Maoists and other such outfits. The coal ministry is completely in unison with the government on this,” Jaiswal said, adding that land acquisition, rehabilitation and relocation had become a major problem.
Once implemented, the 26 per cent profit-sharing clause will apply to existing mines as well. “But for existing mines, the company will have to share from its future profits.” This means that the clause will not be implemented on a retrospective basis.
According to Jaiswal, the ministry is coming out with a new policy to distribute small and isolated coal seams that Coal India finds uneconomical. However, he said abandoned mines would not be brought under the competitive bidding route. “We have given out such mines for redevelopment through global tenders and the same process will be followed in the future.”
On the distribution of coal blocks through competitive bidding, he said, “The ministry has already allocated 208 blocks for captive use. Of these, only 26 have commenced operations. The pace of development of the allotted blocks has not been as desired. So the government has decided to auction blocks to attract serious players for speedy development.”
Illegal mining
Jaiswal has squarely put the onus on state governments to check illegal mining.
“Coal ministry cannot keep a vigil on thousands of kilometers of mining areas. In fact, the ministry doesn’t have the wherewithal. State governments have the police and other machinery at its disposal to stop illegal mining. It is the responsibility of state governments to protect government properties,” he said.
“Illegal mining is very low in Maharashtra, Madhya Pradesh, Chhattisgarh and Orissa but it is quite high in Bengal and Jharkhand,” the minister added.
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