A Parliamentary committee headed by Trinamool Congress MP Kalyan Banerjee, suggested the government to mandate coal and lignite mining firms to contribute an amount equal to royalty towards a "district mineral foundation (DMF).

While the new mining bill mandates miners of major minerals like iron ore and bauxite to make such a contribution, the bill mandates coal and lignite mines to pay 26 percent of profits as compensation for the project affected.

The house panel, however, wants the government to include a clause in the bill which makes the contribution based on royalty applicable to coal and lignite mines too.

The committee wants the contribution towards the DMF be worked out on the basis of annual royalty for coal and lignite miners.

The committee also suggested changes in some of the provisions in the bill. According to the bill, a leaseholder would also have to allot one non-transferable share to each person in a family that's affected by any mining project.

The committee points out that a non-transferable share carries no economic value and the holder will be at a disadvantage. It suggested that the shares should be transferable and linked to the quantum of land.

Meanwhile, the committee opined that in no case, under whatever circumstances, the 'first-in-line-principle' should be preferred over 'competitive bidding' and the scope of generating more and more revenue for exchequer cannot be restricted for want of a certain way of discovery of minerals, says a 192-page report presented to the Lok Sabha recently.