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Objecting 26 per cent profit to locals

Objecting 26 per cent profit to locals

The coal ministry has objec­ted to a proposal to make it mandatory for mining firms to contribute a portion of their profits towards local area devel­opment, as it will erode valua­tion of firms and dampen inves­tor sentiment. The move could lead to a loss of Rs 200,000 crore in valuation of government and private companies. The move could reduce investments in the sec­tor by Rs 50,000 crore annually, causing loss of direct and indi­rect employment oppor­tunities for about five lakh peo­ple over the next 10 years. The annual compensation amount payable by mining companies could go as high as Rs 25,000 crore, leading to a substantial decline in employable funds.

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