The Indian government set up a group of ministers to look into the proposed new draft Mines and Minerals (Development and Regulation) Bill, 2011. The cabinet considered the recommendation of the GoM and has approved the draft MMDR Bill, 2011 on 30 September 2011.

The benefit sharing model proposed in the new draft MMDR Bill, 2011, is applicable for all mining leases, including those in tribal areas.

The draft mining bill provides for suitable compensation for all exploration activities to be payable to the person or family holding occupation or usufruct or traditional rights on the area of exploration, minister of state for mines Dinsha Patel informed the Lok Sabha in a written reply.

All mining leaseholders, including public sector undertakings and private sector companies have to make annual contribution to a district mineral foundation set up at the district level.

For minerals other than coal, this amount is equivalent to royalty while for coal this would be equivalent to 26 per cent of profit and for minor minerals, a sum prescribed by the state government.

A portion of the amount paid into the district mineral foundation would be used to make recurring payments to people affected by mining related operations.

All mining companies should allot at least one share at par to each person of the family affected by mining, so as to give a sense of ownership in the enterprise.

source:mining.com