Mining cos lose Rs 34Kcr market cap on draft bill worry

After several months of back and forth the group of ministers finally decided to give a unanimous go ahead to the controversial Mines And Minerals Development Regulation Bill (MMDR). But there was little clarity on what the GoM had decided upon leading to uncertainty in the markets.

At the end of trade coal and mineral miners lost nearly Rs 34,000 crore in market cap. CNBC-TV18's Sajeet Manghat and Sandeep Srikant report.
The confusion over sharing of profits and additional royalty for coal and other mineral miners saw continued today. But what is now clear is that coal companies will have to pay 26% of the profits to local authorities and non-coal or mineral companies will have to share an equivalent of the 100% of the royalty they pay with the local authorities.
This decision has been finalised more or less, which will now be discussed by the cabinet.
Speaking to CNBC-TV18, Coal Minister Sriprakash Jaiswal said there have been four meetings of the GoM in the past one year, and after much deliberation, it reached upon the decision yesterday that 26% (royalty would be levied) on the profits for the coal sector and rest of the minerals it would be 100% royalty.