New Delhi: Amid tribals protesting against some mining projects, the government today said that people being displaced should be provided alternative sources of livelihood, besides adequate compensation, but solution does not lie in stopping projects, reports PTI.
"Answer does not lie in the companies stopping mining activities. Answer lies in providing alternatives to those displaced... in what form we can compensate them and make them beneficiary of economic development," finance minister Pranab Mukherjee told the Coal Summit.
Mr Mukherjee's comments come at a time when a Group of Ministers (GoM), headed by him, is deliberating upon a proposal to give tribals a part of profits in mining projects.
"We are addressing this issue," he said.
The GoM has proposed that 26% of the net profit of mining projects should go to the displaced tribals and other affected locals. However, the proposal has been criticised in certain quarters.
Meanwhile, the mines ministry had said its final draft will go with the recommendations of the GoM.
"Based on the discussion of the Group GoM, the final draft of the new Mining Bill is being prepared by the mines ministry and will be placed before the GoM. After that it is to be sent to the Cabinet," mines secretary S Vijay Kumar had said.
The GoM will meet soon to clear the final draft of the Bill.
An estimated Rs1.5 lakh crore worth of greenfield steel projects of ArcelorMittal and Posco have been delayed for about five years due to tribal protects against land acquisition in areas like Orissa and Jharkhand.
Mr Mukherjee also asked coal companies to make investment in coal washing to realise better returns in the long run.
"In our medium term plan we should emphasise on coal washing. The moment we supply washed coal to the end users, I think we can charge little more... therefore more investment in this aspect will be paying in the long term," he said.
Bucking the global trend, the domestic market bounced back after a weak start this morning. The key benchmarks breached their crucial levels of 20,000 and 6,000 once again with the market ending the two-day hiatus and ending in the green once again.
The market opened lower on weak cues from across the globe. The indices soon bounced back in mid-morning trade but a wave of selling resulted in the market paring some of the earlier gains. Sideways movement gave way to an upmove with the Sensex and Nifty breaching their crucial levels of 20,000 and 6,000 amid choppy trade. The benchmarks touched their intraday highs towards the end of the session but ended off those highs.
Finally, the market ended with a gain of nearly 1%, with the Sensex advancing 184.17 points (0.93%) at 20,045. The index touched a high of 20,071 and a low of 19,833 during the session. The Nifty stood at 6,018, a rise of 58.75 points (0.99%). The index witnessed a high-low of 6,029 and a low of 5,951, respectively.
The overall market breadth was positive. The Sensex ended with 25 stocks in the green versus five declining stocks. The Nifty list had 41 advancing stocks and nine declining stocks. The broader indices ended marginally higher than the benchmarks. The BSE Mid-cap index surged 1.04% and the BSE Small-cap index ended 1.05% higher.
The top Sensex gainers were DLF (up 5.18%), Hindustan Unilever (HUL) (up 3.93%), Hero Honda (up 3.85%), Bharti Airtel (up 3.56%) and Maruti Suzuki (up 1.48%). The losers were Jindal Steel (down 1.19%), Sterlite Industries (down 0.23%) and Tata Motors (down 0.17%).
All sectors ended in the positive terrain today. The top gainers were BSE Realty (up 2.78%), BSE Fast Moving Consumer Goods (FMCG) (up 1.79%) and Consumer Durables (up 1.67%) while BSE Metal (up 0.30%) settled at the lower end of the list.
Markets in Asia ended mixed as a rise in initial jobless claims in the US ignited fresh worries about the pace of the global economic recovery. The Japanese market ended lower as the government refrained from making any commitment on the intervention in the forex market. On the other hand, the Hong Kong market surged as realtors hoped interest rates would remain low for an extended period of time.
The Hang Seng was up 0.33%, Jakarta Composite was up 1.71%, Straits Times was up 0.31% and Seoul Composite was up 0.76%. On the other hand, KLSE Composite was down 0.47%, Nikkei 225 was down 0.99% and Taiwan Weighted tumbled 0.44%. China’s benchmark, Shanghai Composite, will re-open for trade on Monday after a long break.
Coal minister Sriprakash Jaiswal today said there was no proposal for granting concessions to public sector undertakings (PSUs) in the 26% profit sharing scheme, envisaged in the new mining bill being framed, and favoured a level playing field in the sector.
He added that there is no proposal (before the Group of Ministers) to give concessions to the PSUs. Mr Jaiswal's view is in contrast to the steel minister Virbhadra Singh's demand to give "special consideration" for PSUs like SAIL and NMDC in the proposed profit sharing regime.
The US markets closed lower for the second straight day on Thursday. The decline was on account of a rise in initial jobless claims and data pointing a slowdown in economic growth in Europe. Initial jobless claims increased by 12,000 to 465,000 in the week ended 18th September, Labor Department figures showed. Adding to investor woes, European data showed the pace of growth in the euro zone's services and manufacturing sector slowed more than expected. The Dow was down 76.89 points (0.72%) at 10,662. The S&P 500 was down 9.45 points (0.83%) at 1,125. The Nasdaq was down 7.47 points (0.32%) at 2,327.
The Securities and Exchange Board of India (SEBI) today said foreign institutional investors (FIIs) have to, by 1st October, end the practice of investing money collected from a single or few investors in stocks, as a guard against manipulation.
Rejecting the demand from FIIs for extension of the deadline for compliance with the new rules, SEBI chairman C B Bhave said FIIs will have to register afresh under a structure conforming to the new norms.
The new guidelines require that FIIs or each of their sub-accounts must have not less than 20 investors, except for a few entities like pension funds.
Foreign institutional investors were net buyers of Rs534 crore in the equities segment on Thursday. Domestic institutional investors were net sellers of Rs645crore worth of stocks on the same day.
In a surprise development, oil regulator Directorate General of Hydrocarbons (DGH) has disallowed a natural gas discovery that Reliance Industries (RIL) (up 0.40%) made in the Krishna Godavari (KG) basin, saying the Mukesh Ambani-run firm had failed to give prior notice for conducting tests to confirm the find.
Reliance had last month struck gas in the fourth successive well on the block KG-DWN-2003/1 that lies close to its prolific D6 area in the KG basin in the Bay of Bengal.
ICICI Investment Management, a subsidiary of ICICI Bank (up 1.18%), has raised $50 million (about Rs 225 crore) for its Emerging India Fund, a private equity player that is looking at total size of $100 million.
The amount has been raised from domestic investors as part of the fund's first closure, the bank said in a statement. The fund seeks to invest in growth capital of mid market and emerging corporates primarily through equity and equity-linked instruments.
State-owned BHEL (up 0.28%) today said it is in talks with SAIL and Vizag Steel to tie up for manufacturing high grade steel, while Korean steel maker Posco may join the proposed joint venture company as a technology partner.
BHEL's move is aimed at securing supplies of essential raw material like CRGO steel, alloy steels, castings and forgings, etc.
Competition between the bourses is certainly bound to hot up, now that Madhu Kannan has been...