The Union Cabinet approved the Mines and Mineral Development and Regulation (MMDR) Bill, 2011. The Bill aimed at curbing illegal mining and bringing more transparency in the allocation of licences for mining.
The Bill has provisions for 26 percent profit sharing by coal miners and an amount equivalent to royalty by non-coal miners with project affected people.
The Mines and Mineral Minister Dinsha Patel said the Bill is likely to be tabled in Parliament in the winter session. Elaborating about the provisions of bill, Mines Secretary S Vijay Kumar said a Mineral Development Fund will be created in every district, in which profit and royalty shared by miners will be deposited and spent on the local population and area development. The new Bill also obligates mining firms to pay a 10 percent cess to state governments and 2.5 per cent to the Centre on the total royalty paid. Modern technology like GPRS will be used to monitor mining activities and the Bill has punitive provisions to prevent illegal mining.