India aims to ratify in this session of parliament a new bill that will make it mandatory for mining companies to give more than a quarter of their profit to the people living near the mines.
A panel of ministers will complete reviewing the proposed bill in a day or two, Mines Minister B. K. Handique told reporters today in New Delhi. The bill will then be presented to the lawmakers for their approval, he said.
The bill aims to win over the local populations by sharing the benefits of resources in their regions. Opposition from farmers and tribal people has delayed plans by Posco, ArcelorMittal and other global companies to acquire mines and land for projects in India.
The law will erode profits of miners including Coal India Ltd., the world’s largest producer of the fuel, Sesa Goa Ltd., the nation’s top iron ore exporter, as well as Tata Steel Ltd. and Steel Authority of India Ltd., which produce iron ore from their own mines.