Mines minister backs oustees

Mining firms will have to share 26 per cent of their profits with locals who lose their lands to projects, Steel Minister Virbhadra Singh said. Sumant Banerji reports.

Mining firms will have to share 26 per cent of their profits with locals who lose their lands to projects, Steel Minister Virbhadra Singh said.

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"There is absolutely no re-thinking the profit-sharing clause. Whether the steel companies like it or not is another matter, but this is the need of the hour," Singh told Hindustan Times in an interview.

Last month, a Group of Ministers examining the draft Mines and Minerals (Development & Regulation) Bill, 2010 agreed to insert a clause that would require companies to set aside 26 per cent of profits every year for displaced locals.

Mining firms have said the clause will dent profitability and discourage fresh investment. They would prefer the payout to locals to be a fixed amount, part of the operating cost.