New Mining Bill will hit Coal India the hardest: Analysts

Moneycontrol Bureau

The new Mining Bill cleared by the Union Cabinet today could  impact bottomlines of metal  companies like Hindustan Zinc, Tata Steel and JSW Steel to name a few by anything between 8%-13%, say analysts-- as these companies will now have to share 100% royalty with affected locals in the region.

But more then these metal companies, its Coal India whose profits could be dented at significant levels as coal miners will now compulsorily have to share 26% of its profit after taxes to the affected tribals.

If the bill is passed, an estimated amount of Rs.10,000 crore will be generated per year from miners and an average amount of Rs.180 to 200 crore will be distributed among District Mining Foundations of 60 mineral rich districts that include 25 districts affected by Left Wing Extremism.

Meanwhile, as the mining Bill was getting approved in the Cabinet, analysts quickly did a preliminary analysis on the kind of impact it will have on miners and metal sector.

Have a look as to what brokerages ran us through while explaining the nitty-gritty of the Bill.

Bhavesh Chauhan from Angel Broking told moneycontrol.com,