Bloomberg reported that India's mines ministry proposed mining companies allocate as much as 26% of their profit to develop the area where they operate, dropping an earlier proposal to give residents an equal stake in the projects.

Mr BK Handique mines minister of India said that the law will require mining companies to offer a symbolic stake to the local residents. The proposed law will now be considered by a group of ministers before parliament discussions.

The draft mines act seeks to win over the local population, which is often deprived of the benefits of resources in their region, prompting them to become rebels. Maoist, or rebel, activity in seven eastern and central states of the country is threatening at least USD 78 billion of natural resource projects, brokerage CLSA Asia Pacific Markets estimates.

(Sourced from www.bloomberg.net)