National Mineral Policy 2006 - Department of Mines

100,000 per acre for double crop. In addition, the state government envisages that the miningcompany would set apart up to 3 per cent of its Net Annual Profit for undertaking welfareactivities/development works in the villages around the mining project. The activities/worksinclude education, health, roads, community buildings, skill upgradation facilities, and otherdevelopment work required for the area.3.16 The existing packages in the states are generally common to all kinds of projects,including mining projects. It can be observed from the SDF worked out by ICMM that majormining projects can improve the life of indigenous communities significantly. From the SDF,the working group proposed in paragraph 3.11 would have to build on the existing packagesand take fully into account the SDF standards worked out by ICMM and World ConservationUnion (WCU) to develop the norms for compensation to PAPs as well as the benefits thatmust accrue to the communities living in the villages around the mining area. The Samathajudgment lists the facilities to be provided to persons in the Scheduled areas, i.e. the tribals, inparagraph 113 of the Order. These include maintenance of roads and communications in theScheduled areas, supply of potable water to the tribals, establishment of schools for impartingprimary and secondary education and vocational training, providing employment in theproject, establishment of hospitals and camps providing free medical aid, maintenance ofsanitation, and construction of houses. The judgment further states, in paragraph 114, that 20per cent of the profits should be set aside by the miner for these activities. This 20 per centexcludes payments for forest and environment related compensation [compensatoryafforestation and net present value (NPV)], which is dealt with in the Godavarmanjudgement. The main thrust of the ICMM’s SDF is on a holistic development of theindigenous populations (tribals) that can be catalysed by a mining intervention. Hence, it isnot only a question of providing jobs or financial assistance for opening shops and plots andsome funds for making houses, etc. Where resettlement takes place, companies are requiredto ensure that living standards are not diminished, that community and social ties arepreserved, and that they provide fair compensation for loss of assets and economicopportunity. Responsibility for ensuring the long-term well-being of resettled communitieshas to be defined and monitored. As mentioned earlier, companies are required to adopt as amatter of policy such measures that will support local businesses through preferentialprocurement from local suppliers and distributors, prioritise employment of locals, andarrange for skills training and generally build human and financial resources in the localcommunity. More importantly, international best practice includes giving a stake to the75