Out of the 12 chief mining states, CSE’s study focused on 13 districts in top five mining states of Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh and Rajasthan.
A study of District Mineral Foundation (DMF) funds expenditure, that are collected from mining companies, by Centre for Science and Environment shows beneficiaries have not been identified in any of the mining-heavy districts and funds are not being spent on priority issues such as malnutrition and mortality among children under five years. Out of the 12 chief mining states, CSE’s study focused on 13 districts in top five mining states of Odisha, Jharkhand, Chhattisgarh, Madhya Pradesh and Rajasthan.
As per CSE’s report, these five states account for more than 72 per cent of the Rs.18,467 crore accrued in DMF.
CSE’s evaluation showed that there were glaring issues with the way the fund was being administered and even in the composition of DMF body which was found to be filled with members of political parties and government officials. As per law, DMF is to be developed as a trust and it has to function as non-profit organisation. Its primary responsibility is to identify the communities and people affected by mining activities and invest in their welfare. But, beneficiaries have not been identified in any of the five key states evaluated.
Worryingly, the trend in utilisation of DMF funds indicates that projects that already have government support are being funded through the DMF. In Odisha’s Sundargarh district where U5MR (under five mortality rate) is as high as 67, a negligible Rs.3 crore has been sanctioned for child development out of the district’s Rs.745 crore.
Further, in some instances state governments have issued diktats to focus only on drinking water supply and sanitation. According to the study, in Jharkhand’s West Singhbhum district, the sole focus is on drinking water and household toilets.
West Singhbhum has an under five mortality rate (U5MR) of 96, and a high malnutrition rate with 63 per cent children in the same age-group growing up stunted, the report said.
The DMF was instituted through an amendment under India’s central mining law, the Mines and Mineral (Development and Regulation) Act (1957) - with an objective to working for the interest and benefit of persons and areas affected by mining-related operations.
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