Grade 6

Social Studies

Unit: 09

Lesson: 03

Suggested Duration: 5 days

Grade 06 Social Studies Unit 09 Exemplar Lesson 03: Civic ParticipationGrade 06 Social Studies Unit 09 Exemplar Lesson 03: Civic Participation

This lesson is one approach to teaching the State Standards associated with this unit. Districts are encouraged to customize this lesson by

supplementing with district-approved resources, materials, and activities to best meet the needs of learners. The duration for this lesson is

only a recommendation, and districts may modify the time frame to meet students’ needs. To better understand how your district may beimplementing CSCOPE lessons, please contact your child’s teacher. (For your convenience, please find linked the TEA Commissioner’s Listof State Board of Education Approved Instructional Resources and Midcycle State Adopted Instructional Materials.)

Lesson Synopsis

This lesson on civic participation utilizes scenarios for students to discuss and reflect upon. They develop plans of action for a group that

may not be fully represented by their government. Students also do a comparative study of national economies in South Asia with the United

States.

TEKS

The Texas Essential Knowledge and Skills (TEKS) listed below are the standards adopted by the State Board of Education, which are

required by Texas law. Any standard that has a strike-through (e.g. sample phrase) indicates that portion of the standard is taught in a

previous or subsequent unit. The TEKS are available on the Texas Education Agency website at http://www.tea.state.tx.us/index2.aspx?

id=6148.

6.8 Economics. The student understands the factors of production in a society's economy. The student is

expected to:

6.8A Describe ways in which the factors of production (natural resources, labor, capital, and entrepreneurs)

influence the economies of various contemporary societies.

6.10 Economics. The student understands categories of economic activities and the data used to measure a

society's economic level. The student is expected to:

6.10A Define and give examples of agricultural, wholesale, retail, manufacturing (goods), and service

industries.

6.10C Identify and describe the effects of government regulation and taxation on economic development and

business planning.

6.12 Government. The student understands various ways in which people organize governments. The student is

expected to:

6.12B Compare ways in which various societies such as China, Germany, India, and Russia organize government and how they function.

6.13 Citizenship. The student understands that the nature of citizenship varies among societies. The student is

expected to:

6.13A Describe roles and responsibilities of citizens in various contemporary societies, including the United

States.

6.14 Citizenship. The student understands the relationship among individual rights, responsibilities, duties, and

freedoms in societies with representative governments. The student is expected to:

6.14A Identify and explain the duty of civic participation in societies with representative governments.

6.14B Explain relationships among rights, responsibilities, and duties in societies with representative

governments.

6.16 Culture. The student understands that all societies have basic institutions in common even though the

characteristics of these institutions may differ. The student is expected to:

6.16A Identify institutions basic to all societies, including government, economic, educational, and religious

institutions.

Social Studies Skills TEKS

6.22 Social studies skills. The student communicates in written, oral, and visual forms. The student is expected to:

6.22C Express ideas orally based on research and experiences.

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GETTING READY FOR INSTRUCTION

Performance Indicators

Grade 06 Social Studies Unit 09 PI 03

Given a description of a small town in rural India, write a public service announcement (focusing on economic, social and/or political priorities) that explains to

the citizens of the town how India’s government can work to meet their needs, and how participating in the democratic process through voting or running for

office can benefit themselves, their village, and their country.

Standard(s): 6.13A , 6.14A , 6.14B , 6.21B , 6.22C

ELPS ELPS.c.3H , ELPS.c.5B

Key Understandings

In countries with representative governments, civic participation is an important tool for citizens to ensure that their voices are heard

and that their opinions matter.

—    How can citizens ensure that their voices are heard?—    What influences the economy of a country?

Vocabulary of Instruction

political minority representative government civic duty

Materials

Dictionary (1 per group)

Highlighters

index cards (1 per student)

Attachments

All attachments associated with this lesson are referenced in the body of the lesson. Due to considerations for grading or student

assessment, attachments that are connected with Performance Indicators or serve as answer keys are available in the district site and are

not accessible on the public website.

Teacher Resource: Population

Teacher Resource: Scenarios

Teacher Resource: Employment Comparison

Handout: Comparing Economies (1 per group)

Handout: Matrix (1 per group)

Handout: Get Involved (1 per group)

Handout: Mining Bill Makes Profit Sharing Mandatory (1 per group)

Resources

Data: https://www.cia.gov/library/publications/the-world-factbook/geos/in.html

Background Information: http://www.state.gov/r/pa/ei/bgn/3454.htm

Advance Preparation

1. Become familiar with content and procedures for the lesson.

2. Refer to the Instructional Focus Document for specific content to include in the lesson.

3. Select appropriate sections of the textbook and other classroom materials that support the learning for this lesson.

4. Preview available resources and websites according to district guidelines.

5. Prepare materials and handouts as needed.

Background Information

Colonial History of the Region

The region was referred to as the British India Empire and was under British control from 1858 through 1947.

British colonization introduced new government institutions, a civil service, new military organization and universities in the region they controlled. They also

Grade 6

Social Studies

Unit: 09

Lesson: 03

Suggested Duration: 5 days

Last Updated 5/10/13

Print Date 06/26/2013 Printed By Karen Johnson, MIDLAND ISDpage 2 of 17  

influenced the South Asian region by introducing the English language as well as the telegraph, telephone, railroads, the postal system, and the press.

Many of those under colonial rule resented the British presence for a variety of reasons including unequal access to the armed forces, universities and other civil

services. The Indian National Congress Party of 1885 and the Muslim League of 1906 spurred nationalism and led the region towards independence.

Hindus and Sikhs were influenced by Mohandas Gandhi and Jawaharlal Nehru. A nationalistic feeling was brewing. The Muslim League pressed to divide British

India. They wanted Muslim and non-Muslim regions partitioned into two nations. There was much opposition to the separation. Gandhi was a major political and

spiritual leader of India and the Indian independence movement. He inspired movements for civil rights and freedom around the world. Gandhi and Nehru were

close friends. Nehru was a member of the Indian National Congress Party and India’s first Prime Minister.

On August 15, 1947, India gained independence from British rule. However, the British departure and the establishment of the Indian National Congress Party did

not settle the differences between Muslims and Hindus. Millions of Muslims migrated to Pakistan as well as Hindus in Pakistan migrated to India.

South Asia has many religions, including Islam, Hinduism, and Sikhism as well as many languages that continue to influence politics, culture, and settlement

patterns among its citizens. The religions and many of the languages that are related to each other in South Asia establish a relationship that link as well as

separate cultures and societies.  These cultural factors impact South Asia’s government and political boundaries.

India’s election process

Every five years, India holds elections. Citizens have a specific day to vote according to the state in which they reside. Then, all of the votes are counted on the

same day. India’s elections are a process that goes beyond voting for a person to rule the nation. Since their independence from Britain, India’s elections have

developed over time and reflect local cultural influences. India’s election process is enormous with an electorate larger than the EU and United States combined.

You must be 18 years of age to be able to vote.

India is unique when it comes to political parties. When India first gained independence from Britain, their were three main political parties, the Indian National

Congress, the Socialist Party, and the Communist Party. During the first elections, there were over 50 parties. Today there are more than 600 political parties.

Some are individual state parties. Others are national parties. The political parties have conventions and attempt to convince voters to support their party’s

candidates.

GETTING READY FOR INSTRUCTION

Teachers are encouraged to supplement and substitute resources, materials, and activities to meet the needs of learners. These lessons

are one approach to teaching the TEKS/Specificity as well as addressing the Performance Indicators associated with each unit. District

personnel may create original lessons using the Content Creator in the Tools Tab. All originally authored lessons can be saved in the “MyCSCOPE” Tab within the “My Content” area.

INSTRUCTIONAL PROCEDURES

Instructional Procedures

ENGAGE – People and a Representative Government

Notes for Teacher

NOTE: 1 Day = 50 minutes

Suggested Day 1 – 15 minutes

1. Show Teacher Resource: Population to students but cover the title and the

numbers.

2. Ask students to look at the list of countries carefully.

3. After a few minutes, pose questions such as:

What might this data indicate about these countries?

Is there a pattern?

The United States is ranked third in what?

China is ranked first and India is ranked second in respect to what?

4. Once students deduce that the ranks are based on population, facilitate a

discussion about population and government by asking questions such as:

If you were to lead a democracy of over 1 billion people, what

challenges would you face?

How do you make sure that all of the people are represented equally

and fairly?

5. Explain to students that they will be participating in a role-playing activity that

explores the ideas of civic participation, political minorities, political parties and

Attachments

Teacher Resource: Population

Purpose

Students begin to think about the challenges

that come with a large population and a

representative government.

TEKS: 6.16A

Grade 6

Social Studies

Unit: 09

Lesson: 03

Suggested Duration: 5 days

Last Updated 5/10/13

Print Date 06/26/2013 Printed By Karen Johnson, MIDLAND ISDpage 3 of 17  

elections.

EXPLORE – Learning through Scenarios Suggested Day 1 (continued) – 35 minutes

1. Arrange students into five groups.

2. Each group is given a scenario from Teacher Resource: Scenarios

3. Each group is also given a copy of the components of the government in India

along with a clear description of a representative government. (Note: these last

two components are included in the Teacher Resource: Scenarios)

4. Each group reads the scenario and discusses the following:

In what ways is our group of people under-represented?

Are there injustices? What are they?

What needs are not being met?

How can we help them?

5. After the discussion, groups read the description of a representative

government and decide on a plan or strategy to help those you represent

become more involved in the political process.

Possible actions: creating a petition by writing a letter to the federal

government of India expressing their needs and concerns and acquiring

necessary signatures from people that want to see change.

Create a simple pamphlet that educates children about their rights.

Prepare a commercial for a media station to air and bring attention to the

situation.

Develop a webpage that advocates your argument.

6. Note: These are just some examples of how each group might approach the

scenario. The examples may be provided for groups to choose from or let the

groups become creative in how they would approach the problem. Guide

students by discussing ways in which people in the United States deal with

issues (peaceful protests, writing letters to elected officials, editorial letters,

media interviews, social networking, etc.)

Attachments

Teacher Resource: Scenarios

Purpose

Students learn about civic responsiblity by

investigating the democratic practices of

another country.

TEKS: 6.8A; 6.10A, 6.10C; 6.12B, 6.13A. 6.14A, 6.14B

Instructional Note

Separate the scenarios and distribute a

different one to each of the groups. Every

group gets a copy of page 2 from the Teacher

Resource: Scenarios

EXPLAIN – Plan of Action and Critique Suggested Day

1. Each group shares their scenario with the whole class and presents the plan of

action.

2. After each group presents their plan of action, other groups write a critique.

Groups have about five to seven minutes to come up with a critique. The

critique is not a criticism, but suggests a change or additional action that may

contrbute to the plan of action.

3. Groups share critiques with the whole class (one group at a time) which could

include what they liked about the plan and their additional idea.

Purpose

Students learn about civic duty by applying it to

the needs of people in another country. They

also learn to think critically by formulating a

critique and developing an alternative plan of

action.

TEKS: 6.8A; 6.10A, 6.10C; 6.12B; 6.22C

Instructional Note

This activity is two-fold. Groups are presenting

their plan of action but they are also critiquing

each of the other groups and coming up with a

change to each plan.

ELABORATE – Compare and Contrast Suggested Day 3 – 20 minutes

1. Groups create a Venn diagram that compares and contrasts India with the

United States. Topics to consider:

System of government

Political parties

Elections

Presidential term limits/years in office

Individual rights

2. After groups finish the Venn diagram activity, each group includes one aspect

TEKS: 6.8A; 6.10A, 6.10C; 6.12B; 6.22C

Instructional Note

Encourage students to go back to their

activities from Celebrate Freedom Week and

from Unit One when comparing the U.S. with

India.

Grade 6

Social Studies

Unit: 09

Lesson: 03

Suggested Duration: 5 days

Last Updated 5/10/13

Print Date 06/26/2013 Printed By Karen Johnson, MIDLAND ISDpage 4 of 17  

they like and one recommendation for improvement. Consider asking the

students to answer How can citizens ensure that their voices are heard?

EXPLORE/EXPLAIN – Economics of the Region Suggested Day 3 (continued) – 30 minutes

1. Project the Teacher Resource: Employment Comparison and ask questions

such as:

After viewing the pie charts, what are the types of sectors of the

economy?

What are examples of each of the sectors of the economy?

2. In small groups, students compare economic data for India, Pakistan and the

U.S. using the Handout: Comparing Economies. Groups review through the

data, making observations and discussing with group members.

3. After about 10 minutes, distribute the Handout: Matrix. Students transfer the

information from the Handout: Comparing Economies to the Handout:

Matrix.

4. After the data is transferred to the matrix, students draw conclusions about the

economic activities in India, Pakistan and the U.S.

5. Groups write five conclusions that reflect the differences and/or similarities

between the three countries.

6. Ask the questions such as:

What are the major sectors of the labor force?

Attachments

Teacher Resource: Employment Comparison

Handout: Comparing Economies

Handout: Matrix

Purpose:

Students are to investigate and compare the sectors the

Indian, Pakistani and the U.S. economies, as well as compare

other economic data and then draw conclusions from the

comparisons.

TEKS: 6.8A; 6.10A, 6.16A

EXPLORE/EXPLAIN – Get Involved Suggested Day 4 – 35 minutes

1. In small groups, students read the scenario from the Handout: Get Involved.

Scenario: You are an elected leader of a small village in India. You have

just been informed about a bill (a proposed law) that would require mining

companies in your region to share part of their profit with the people living in

the community.

2. Provide a brief explanation and overview of the group activity to the whole

class. (If the bill becomes a law, groups list advantages and disadvantages for

Mining Companies, the federal government and the community/village).

Group Task: Discuss the bill and whether the community wants to resist or

support passage of the bill. What ways can your community could influence

the government? in regards to the bill?

3. Students read the article, Handout: Mining Bill Makes Profit Sharing

Mandatory.

4. As they read the article, they highlight evidence that supports an advantage or

a disadvantage from a Mining Company’s perspective, the federalgovernment’s perspective and the community’s perspective. (Note: Encouragestudents to use three different colors to highlight or students may right side

notes as they read through the article.

Materials

Highlighters

Dictionary (1 per group)

Attachments

Handout: Get Involved (1 per group)

Handout: Mining Bill Makes Profit Sharing

Mandatory (1 per group)

TEKS: 6.10C

Instructional Note

Instructions for this activity are part of the

Handout: Get Involved.

When students read the article, note that some

words are in brackets. The words in brackets

provide students with a synonym to help with

comprehension.

ELABORATE – Government Regulations Suggested Day 4 (continued) – 15 minutes

1. On an index card, students answer:

What are three effects of government regulation on economic

activities (companies)?

What influences the economy of a country?

Materials:

index cards (1 per student)

TEKS: 6.10C

EVALUATE Suggested Day 5 – 50 minutes

Grade 6

Social Studies

Unit: 09

Lesson: 03

Suggested Duration: 5 days

Last Updated 5/10/13

Print Date 06/26/2013 Printed By Karen Johnson, MIDLAND ISDpage 5 of 17  

Grade 06 Social Studies Unit 09 PI 03

Given a description of a small town in rural India, write a public service announcement

(focusing on economic, social and/or political priorities) that explains to the citizens of the

town how India’s government can work to meet their needs, and how participating in the

democratic process through voting or running for office can benefit themselves, their village,

and their country.

Standard(s): 6.13A , 6.14A , 6.14B , 6.21B , 6.22C

ELPS ELPS.c.3H , ELPS.c.5B

Grade 6

Social Studies

Unit: 09

Lesson: 03

Suggested Duration: 5 days

Last Updated 5/10/13

Print Date 06/26/2013 Printed By Karen Johnson, MIDLAND ISDpage 6 of 17  

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 05/10/13 page 1 of 1

Population

Rank Country Population Date of

Information

1 China 1,349,585,838 July 2013 est.

2 India 1,220,800,359 July 2013 est.

3 United States 316,668,567 July 2013 est.

4 Indonesia 251,160,124 July 2013 est.

5 Brazil 201,009,622 July 2013 est.

6 Pakistan 193,238,868 July 2013 est.

7 Nigeria 174,507,539 N/A

8 Bangladesh 163,654,860 July 2013 est.

9 Russia 142,500,482 July 2013 est.

10 Japan 127,253,075 July 2013 est.

11 Mexico 116,220,947 July 2013 est.

12 The Philippines 105,720,644 July 2013 est.

Data courtesy of the Central Intelligence Agency:

CIA. (2013). The world factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 05/10/13 page 1 of 2

Scenarios

Group 1:

You represent India’s agricultural workers. They want better wages and working conditions for people that work in the fields. Some workers are concern about of the heavy use of herbicides and pesticides.

Group 2:

You represent India’s agricultural industry. The industry wants to increase agricultural production to reduce dependency on food imports. Many companies are owned by the government. The wages are appropriate for people because it keeps the price of products low and therefore all people can afford to purchase these products.

Group 3:

You represent workers in factories that are owned by foreign companies. India’s labor force is English-speaking and highly educated, and many foreign companies are investing in India’s service and manufacturing sectors to take advantage of low labor costs. Wages are low and workers feel overworked and underpaid.

Group 4:

You represent a religious minority. India’s religious groups include Hindu 80.5%, Muslim 13.4%, Christian 2.3%, Sikh 1.9%, and other religions 1.8%. What if the religion that has the majority decides to make their religion the official national religion?

Group 5:

You represent the children. Children ages 0-14 years are 29.7% of the total population (male 187,450,635/female 165,415,758). They are a minority. India is a country with one of the highest percentages of child labor. Sometimes children are forced into labor to pay family debts. The government has few laws in place to protect the children.

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 05/10/13 page 2 of 2

India’s Government

Republic of India Federal Republic Constitution – 1950 Executive – president (chief of state), prime minister (head of state),

Council of Ministers (cabinet) Legislative – bicameral parliament (two houses of representation) Judicial – Supreme Court 28 states The president is elected every five years and there are no term limits. There are over 600 political parties in India.

What is a representative government?

Citizens in societies with representative governments have a responsibility to all other citizens to ensure the protection and expression of their individual rights.

Consider two categories of responsibilities in a democracy: Personal responsibilities (such as taking care of themselves, accepting

responsibility for the consequences of their actions, taking advantage of the opportunity to be educated, and supporting their families).

Civic responsibilities are actions a citizen needs to perform (such as respecting the rights of others; being informed and attentive to the needs of their community, staying informed about issues impacting the decisions of elected leaders; paying attention to how well their elected leaders are doing their jobs; communicating with their representatives in their school, local, state, and national governments; voting; paying taxes.)

Representative governments often act to protect individual rights, such as in the United States - the unalienable rights (life, liberty, and the pursuit of happiness).

Data courtesy of the Central Intelligence Agency: CIA. (2013). The world factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/ Text on responsibility courtesy of the Social Studies Center [defunct]. (2000). Glossary. Austin: Texas Education Agency.

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 04/25/13 page 1 of 1

Employment Comparison  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Data courtesy of the Central Intelligence Agency: CIA. (2013). The world factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/

Factors of Production: Pakistan

Agriculture

Industry

Services

Other

Sectors of the Economy: U.S.

Agriculture

Industry

Services

Other

Sectors of the Economy: India

Sectors of the Economy: Pakistan

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 04/25/13 page 1 of 3

Comparing Economies India’s Economy

Labor Force 487 million (2nd in the world)

Agriculture: 52% rice, wheat, oilseed, cotton, tea, sugarcane,

lentils, onions, potatoes, dairy products, sheep, goats, poultry, fish

Industry: 14% textiles, chemicals, food processing, steel, transportation equipment, cement, mining,

petroleum, software, pharmaceuticals

Services: 34%

trade, hotels and restaurants, railways, transport and storage, communication,

banking, insurance, real estate, business services, public administration, personal

services, community services

Exports: $299.4 Billion (2011) petroleum products, precious stones, machinery, iron and steel, chemicals,

vehicles, apparel

Exports to: (2011)

United Arab Emirates 13% U.S. 11.4% China 6.3%

Singapore 5.3%

Imports: $461.4 Billion crude oil, precious stones, machinery,

fertilizer, iron and steel, chemicals

Imports from: (2011)

China 12.1% United Arab Emirates 8.3%

Saudi Arabia 5.8% U.S. 5.1%

Switzerland 4.7%

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 04/25/13 page 2 of 3

Pakistan’s Economy Labor Force 58.41 million

Agriculture: 45% cotton, wheat, rice, sugarcane, fruits, vegetables, milk, beef, mutton, eggs

Industry: 20.1% textiles and apparel, food processing,

pharmaceuticals, construction materials, paper products, fertilizer, shrimp

Services: 53.3%

trade, research and educational consultancy services, restaurants and hotels, financial, construction, business services, computer and information technology (IT) services,

professional services, engineering, legal and accounting services

Exports: $25.35 billion (2011 est.) textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sporting goods,

chemicals, manufactures, carpets and rugs

Exports to: (2011)

U.S. 14.3% UAE 7.7%

Afghanistan 7.6% China 7.6%

Germany 5% UK 4.1%

Imports: $35.82 Billion petroleum, petroleum products, machinery,

plastics, transportation equipment, edible oils, paper and paperboard, iron and steel, tea

Imports from: (2011)

China 17.9% Saudi Arabia 11.2%

UAE 11.1% Kuwait 5.8%

Malaysia 5.7% India 4.9% U.S. 4.3%

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 04/25/13 page 3 of 3

United States Economy Labor Force 153.6 million

Agriculture: 1.2% wheat, corn, other grains, fruits, vegetables, cotton; beef, pork, poultry, dairy products;

fish; forest products

Industry: 19.2%

highly diversified, world leading, high-technology innovator, second largest

industrial output in world; petroleum, steel, motor vehicles, aerospace,

telecommunications, chemicals, electronics, food processing, consumer goods, lumber,

mining

Services: 79.6%

truck transportation, messenger services and warehousing; information sector services; securities, commodities and other financial

investment services; rental and leasing services; professional, scientific and

technical services; administrative and support services; waste management and

remediation; health care and social assistance; and arts, entertainment and

recreation services

Exports: $1.497 trillion

agricultural products (soybeans, fruit, corn) 9.2%, industrial supplies (organic chemicals)

26.8%, capital goods (transistors, aircraft, motor vehicle parts, computers,

telecommunications equipment) 49.0%, consumer goods (automobiles, medicines)

15.0%

Exports to: (2011)

Canada 19% China 7% Mexico 13.3% Japan 4.5%

Imports: $2.236 trillion (2011 est.)

agricultural products 4.9%, industrial supplies 32.9% (crude oil 8.2%), capital

goods 30.4% (computers, telecommunications equipment, motor

vehicle parts, office machines, electric power machinery), consumer goods 31.8%

(automobiles, clothing, medicines, furniture, toys)

Data courtesy of the Central Intelligence Agency: CIA. (2013). The world factbook. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 04/19/13 page 1of 1

Matrix

Data India Pakistan U.S.

Labor Force

Agriculture:

Industry:

Services:

Exports:

Exports to:

Imports:

Imports from:

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 05/09/13 page 1 of 1

Get Involved

Use information from the article “Mining Bill Makes Profit Sharing Mandatory” to support your answers

Perspective Advantages Disadvantages

Mining Company

Federal Government

Your community/village

Scenario: You are an elected leader of a small village in India. You have just been

informed about a bill (a proposed law) that would require mining companies in your

region to share part of their profit with the people living in the community.

Group Task:

Discuss the bill and whether the community wants to resist or support passage of the

bill. What ways can your community could influence the government in regards to the

bill?

Grade 6 Social Studies

Unit: 09 Lesson: 03

©2012, TESCCC 04/19/13 page 1 of 2

“Mining Bill Makes Profit Sharing Mandatory” The Indian Express Newspaper

The Union Cabinet on Friday approved a landmark mining Bill

mandating miners to share their profits for the well-being of project-affected people. The Bill also envisages [sees] setting up a regulator to monitor the mining sector’s growth, while allowing states to invite bids [offers] for known mineralized areas.

The Mines and Minerals (Development & Regulation) Bill, 2011,

approved by the Cabinet under the chairmanship of Prime Minister Manmohan Singh, will replace a 54-year old law governing the sector.

The Bill, which mandates [requires] coal companies to share 26 per

cent of their net profits towards people residing in their project areas and non-coal miners to shell out money equivalent to royalty, has, however, triggered sharp reactions from industry chambers and miners.

The Mines Ministry, which pushed for the legislation, expects it to effectively check maladies [problems] in the sector, to regulate its growth and attract the much-needed investments. But, industry bodies like the Ficci, CII and Federation of Indian Mineral Industries (FIMI) — the apex [chief] body of miners — expressed apprehensions that the profit-sharing mechanisms might adversely [badly] affect investments in the sector. Ficci secretary general Rajiv Kumar said that the proposed contribution of 26 per cent of profit in case of coal and 100 per cent for other minerals will make mining unattractive for organized investors including foreign players. He argued that India’s mining sector is already one of the highly taxed ones in the world and the new Act will further increase tax incidence on coal to 61 per cent and iron ore to 55 per cent.

Secretary General of FIMI, RK Sharma, also said that the profit-sharing mechanism would imply a revenue outgo of nearly Rs 5,000 crore [50 bil. rupees] for merchant miners. He warned that foreign investors are likely to shy away from investing in India as they are likely to find resource-rich Africa more lucrative for investment.

Mines Secretary, S Vijay Kumar, said that the Cabinet’s approval to the proposed National Mineral Regulatory Authority (NMRA) is a major step in combating illegal mining. “It will have powers to investigate and

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prosecute offenders. The authority will be empowered to look into cases of illegal mining,” Kumar said. As many as 82,000 cases were reported in 2010 and about 25,000 cases in first three months of this year, according to official data.

Other major provisions of the Bill include imposition of a Central cess

[a tax] and state cess [a tax], setting up of Mineral Funds at national and state level for capacity creation and consulting local community before notifying an area for grant of mining leases. Source: ENS Economic Bureau. (2011, October 01). Mining bill makes profit sharing mandatory. Retrieved from http://www.indianexpress.com/news/mining-bill-makes-profit-sharing-mandatory/854157/0