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Mines Min wants PAPs given shares of mining companies

The mines ministry has told a Parliamentary Standing Committee on Coal and Steel that it is imperative to compensate the project affect persons

Written by Priyadarshi Siddhanta | New Delhi |
July 6, 2012 1:15:13 am

The mines ministry has told a Parliamentary Standing Committee on Coal and Steel that it is imperative to compensate the project affect persons (PAP) in the mining zones by allotting them shares in the mineral exploration companies to ensure their well-being.

The ministry,brushing aside the mining industry’s concerns,has argued that the basic objective of compensation and profit sharing is to promote inclusive growth and make the locals genuine stakeholders in the companies who are operating on their land.

The miners had argued against mandating them to share part of their profits with the PAP in their respective areas as mandated in the Mines and Minerals (Development & Regulation) or MMDR Bill saying it will discourage investment and drive down efficiency.

The mines ministry told the committee that the compensation and profit-sharing mechanism will ensure inclusiveness and prevent alienation of the host population in the mining zones.

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This position is in line with the objectives enshrined in the National Mineral Policy 2008 and an elaborate set of guidelines is being prepared for strengthening the administration of the proposed district mineral foundations in the mineral-rich districts will be prescribed.

The mining industry had said that alloting shares to PAPs was not workable as it would alter the holding pattern of the company.

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