The new mining Bill - approved by a 10-member Group of Ministers (GoM) headed by Finance Minister Pranab Mukherjee on July 7, approved the Daft Mines and Mineral Development and Regulation (MMDR) Bill 2011, which recommends to make it compulsory for coal miners to share their 26% of profits to project affected people, whereas companies mining other resources like iron ore, bauxite and limestone, will be required to pay 100% of royalty on their production on the original inhabitants of the projects.
The MMDR bill, approved by GoM will be sent to cabinet for approval. The bill requires parliamentary approval after passing by cabinet to become a law. It will be applicable to new projects. Earlier, the ministry of coal has opposed the linking of profit sharing to royalty. Coal Minister Prakash Jaiswal had said that this would impact the profitability of coal companies.
This move of government is not liked by the industrial bodies, as the decision of profit sharing will reduce the revenue of companies and increase the business cost. The 26% of profit sharing would cost around Rs 9,000 crore to the mining industry. However, the decision of profit-sharing is expected to make it easier for mining projects to win local approval and accelerate the pace of developments. Years of protests, have delayed many industrial projects, including South Korean steel maker POSCO's plant in Orissa, the biggest foreign direct investment in India at $12 billion.
India's mining sector has only opened up fully to private investors in recent years and state-run companies have lacked the funds and expertise to probe deeper than the top 50 metres or so where its iron ore and coal reserves are found.
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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