PROFIT-SHARING CLAUSE LIKELY TO BE REPLACED BY HIGHER ROYALTY

MUMBAI: The government is likely to dilute a provision in an upcoming legislation on mining that would have required companies to share profits with local communities, according to two people familiar with the issue. Instead, miners may be asked to pay higher royalty — a tax which is calculated as a percentage of price.

Vehement opposition from industry coupled with the fact that profits from mining operations could be difficult to calculate in many cases has brought about the change in the government’s thinking, the people said. A final decision on the legislation — the Mines and Minerals (Development and Regulation) Bill — which is currently being considered by a Group of Ministers, has not yet been taken, they said. ECONOMICTIMES