Rahul Gandhi may be their ‘soldier in Delhi’ and the UPA government may be patting itself on the back for asking mining companies to pay 26% of their net profit to the tribal population. But the figure is deceptive, as far as tribal welfare is concerned.
A deeper look into the figure and an estimate of the tribal population shows that each tribal person will get no more than Rs400 a year, or roughly Re1 a day. Not that all tribal members will be eligible for the compensation, which means the amount could be more than Rs400 for those who are eligible, but in all likelihood, the sum will be in a similar region.
Sources in the government told DNA that 1,161 mining companies operate in 10 major mineral-producing states. These companies paid Rs2,191 crore as royalty in 2008-09 to the states. But though some companies and individuals in the mining business have become strong in recent years (such as the Reddys of Karnataka), the royalty rose merely by about Rs100 crore in three years. The figure in 2006-07 was Rs2,089, and in 2007-08 Rs2,102 crore.
According to the registrar-general of India, the tribal population as per the 2001 census in the 10 states was 5.89 crore. Today, this number must be above 6 crore.
If the companies pay an amount similar to the royalty to the tribal people, each tribal person will get Rs400 a year. The group of ministers (GoM) which cleared the proposed law last Friday envisaged that mining companies will either pay 26% of their net profit or an amount equivalent to the royalty paid to the states, whichever is higher.
The number of mining companies operating in the country is 1,531 (69 are in the government sector). The majority, 1,161, operate in just 10 states.
The companies are crying foul and stoutly opposing the proposed amendment to the Mining and Minerals (Development and Regulation) Act, 1957. Insiders say profit is being made either by the state-owned companies or the big private ones, and the majority of the companies are in losses.
