Mining firms must make locals shareholders,says ministry

Whats more,the ministry,at the behest of mines minister B K Handique,has also mandated that mining leaseholders “provide employment or other assistance in accordance with the rehabilitation and resettlement policy of the concerned state government,” the official said.

Realising that identification of the project affected families was an onerous task,which required objectivity and transparency,the new clause specifies that the “state government through the gram sabhas or district councils or panchayats as the case may be,shall identify the families affected by the mining operations,directly or indirectly,before the commencement of such operations,and the leaseholder concerned shall institute a mechanism and ensure appropriate benefits to such identified families.”

“One thing needs to be clearly understood — that the main intention of the compensation is to ensure that the affected families do not get classified as the Below Poverty Line category,by protecting the existing levels of monthly income earned by the them and for improving their incomes and quality of life,” he reasoned. Even after termination of a reconnaisance permit,prospecting licence or a mining lease,the concerned state government after giving the person holding traditional rights of the land due opportunity,assess the possible damage,to the land by such operations would determine the compensation to be paid by the leaseholder.

Determined to ensure total compliance of this provision by the lessees,the ministry has prescribed stiff penalties. “In case the licencee or lessee,as the case may be,fails to pay the compensation within three months of its determination,the state government may on application,either forfeit the security deposit and make payment there from,or may recover the amount,and may also declare the licensee or lessee ineligible for the purposes of any concessions,” the new provision says.

However,in case the lessee and the person holding occupation or usufruct or traditional rights mutually agree on the compensation through a communication in writing addressed to the officer appointed by the state for the purpose in a prescribed manner,the state could decide accordingly.