Report on Profit Sharing released in Odisha on June 24, 2011
Centre for Science and Environment (CSE) releases its report on profit sharing in Bhubaneshwar, Odisha on June 24, 2011. The report is a detailed analysis of the profit sharing mechanism, international practices being followed in different countries, the need for profit sharing, etc.
There is no doubt that the mining sector in the country today is of vital importance for several uses. But the sector also causes massive displacement of people. Our report discusses the social impact of mining and the need for profit sharing with the affected communities. It also suggests mechanisms in which this profit sharing can be practiced in India.
The release followed by a panel discussion was held at the Red Cross Bhawan and saw participation from over 150 people. The meeting was chaired by Santha Sheela Nair, ex-secretary, Ministry of Mines. The panel members included Chandra Bhushan, deputy director general, CSE; Yashbant Narayan Singh Laguri, Member of Parliament, Keonjhar; Manoj Ahuja, secretary (mines), Odisha and chairman, Orissa Mining Corporation; BL Bagra, CMD, NALCO; Aurobindo Behera, principal secretary (environment and forests), Odisha and Anil Subramaniam, under-secretary, Ministry of Mines.
The dialogue commenced with a presentation by Chandra Bhushan. He explained the concept of profit sharing, its prevalence abroad, advantages and the need for it. He went on to explain the provisions of the draft MMDR Bill, 2011 and their implications. He said, “It is important that we understand that profit sharing does not mean mining anywhere and in all circumstances. It comes into play only if the people agree to have mining in their area/on their land.”
This was followed by BL Bagra's view on the profit sharing concept and the MMDR provisions. He said although NALCO supports the profit sharing clause, the company strongly feels that a strict tab should be kept on the funds that will be generated to prevent its misuse. Yashbant Laguri agreed with BL Bagra and said its high time profit sharing by mining companies comes into existence especially in areas like Keonjhar. This was followed by presentation from other panel members and then an open discussion. The release was widely covered by the media.