The Andhra Pradesh state government enterprise, AP Mineral Development Corporation Ltd, has resolved to spend 20% of the amount realised from M/s. Orient Cements towards higher education of tribals in Utnoor agency area of Adilabad district, Andhra Pradesh. Orient Cements is MDC's joint venture company that extracts limestone in the agency area of Adilabad. Even as a debate rages in the country on finalising the quantum of mining profits to be shared towards corporate social responsibility, a state government enterprise has taken the lead by deciding to spend 20% of the profits towards higher education of tribals in Adilabad. Official sources said the joint venture company had paid Rs 3 crore as royalty to state government and the net profit of the company was around Rs 3 crore. “An amount of Rs 60 lakh has been earmarked to cater to the needs of higher education among tribals in the agency area. The Utnoor Integrated Tribal Development Agency (ITDA) project officer has been entrusted with the responsibility of ensuring higher education to tribals in the area. We have finalised the guidelines of the policy regarding spending 20 % of profits in consultation with the tribal welfare commissioner,” said APMDC MD Praveen Prakash. In fact, the proposed Mines and Minerals Bill makes it mandatory for 26% of mining profits to be shared among locals. It aims to ensure that tribals are not alienated from their own land. “It will be mandatory for companies keen on availing a mining license to make a full disclosure of their mine closure plans (filling up of old mines) and Corporate Social Responsibility (CSR) activities. These companies are duty-bound to furnish a credible CSR blueprint before applying for a mining license,” said a senior official of the department of mines. As of now, Indian companies earmark anywhere between 3% and 5% of their net profits towards programmes being carried out under corporate social responsibility.
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