Indian Mining Bill Proposes Profit Sharing With Residents

15 August 2010 (Last Updated August 15th, 2010 18:30)

Indian mining companies will allocate 26% of their profits to local residents to develop the area where they operate, according to Indian Mines Minister BK Handique. CLSA Asia-Pacific Markets brokerage estimates at least $78bn of natural-resource projects have been threatened because of M

Indian mining companies will allocate 26% of their profits to local residents to develop the area where they operate, according to Indian Mines Minister BK Handique.

CLSA Asia-Pacific Markets brokerage estimates at least $78bn of natural-resource projects have been threatened because of Maoist or rebel activity in the seven eastern and central states of the country.

The government had dropped a proposal of giving an equal stake to the residents in the mining projects.

Mining companies around the world have faced a demand for profit sharing, with Australia and China proposing to increase taxes, according to Bloomberg.