National Mineral Policy 2006 - Department of Mines

affected PAPs in the mining operation, for example in the form of cashless equity. TheGovernment of Orissa has made a beginning in this direction by offering convertiblepreference shares in lieu of cash compensation but ICMM requires mining companies toproactively participate in long-term compensatory measures rather than merely depend on thelocal governments. The dominant thinking is now in terms of offering a direct financial staketo indigenous communities in the success of the mining venture, recognising the ownershipaspect, and thereby, enabling the tribals to directly access a percentage share of the profits.SOCIAL RESPONSIBILITY AND THE MINING SECTOR3.17 Apart from compensation to PAPs, an important component of the SDF is the issue ofCorporate Social Responsibility (CSR) on the part of the mining companies. In thepresentations before the Committee, it was stated that some of the miners in India have beencontributing to local communities through the creation of social infrastructure facilities suchas schools and hospitals. The Goa Mineral Foundation has set up a fund, into which a certainamount per tonne is deposited by each member mining company, which is then used forbuilding social infrastructure in the area such as schools and hospitals. Sesa Goa runscommunity and social development programmes, providing drinking water to surroundingvillages, training local youth in maintenance and operation, community health and first aid,etc. The Tata Group of companies have for long been investing extensively in socialinfrastructure in their mining areas. Their Tribal Cultural Society works in 80 habitats and theTata Steel Rural Development Society works in 710 villages, running balwadis (kindergartenschool), granting scholarships in schools and colleges, running adult literacy programmes,giving vocational training, assisting self-help groups with microfinance credit, promotingmicro enterprises, running cultural heritage centres, and implementing a number of health andhygiene programmes. Essel Mining’s Aditya Birla Center for Community Development hasadopted 19 villages in the vicinity of its mines in the tribal dominated and backward areas.The initiatives include primary health, education through primary schools and literacyprogrammes, drive against superstition, family welfare programmes, setting up of self-helpgroup for the empowerment of women, etc. Maihar Cement of Madhya Pradesh (limestoneminers) has been arranging free medical camps in the villages surrounding its mines andcarrying out immunisation programmes, as well as running three schools in addition toproviding ambulance and fire tender services to these villages. There are several examples76