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Tardy progress on welfare plans under mineral fund: Parliament panel

The panel, chaired by Chintamani Malviya of the BJP, was examining the implementation of DMF and Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

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The Parliamentary standing committee on coal and steel has expressed its disappointment at the tardy pace of implementation of schemes under the District Mineral Foundation (DMF). The panel also noted that the funds collected under the DMF are being spent slowly and that in some states no schemes have been sanctioned for the welfare of people affected by mining.

The panel, chaired by Chintamani Malviya of the BJP, was examining the implementation of DMF and Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

The DMF was set up in March 2015 under the central mining law, the Mines and Mineral (Development and Regulation) Act (1957). Funds for the DMF are collected by levying a royalty. The law mandates that 10 per cent royalty is to be levied in respect of mining leases granted on or after January 2015 and 30 per cent royalty in respect of mining leases granted before January 12, 2015.

The DMF's primary responsibility is to identify the communities and people affected by mining activities and invest in their welfare.

During the examination of the DMF, the panel noted that up to August 2018, Rs 21,235 crore was collected under the DMF and projects worth only Rs 15,548 crore have been sanctioned so far.

The Committee also noted that out of a total 81,624 projects sanctioned, only 22,026 projects worth Rs 4,888 crore have been completed so far.

"The committee feel that the DMF is a defining opportunity in benefiting millions of mining affected people living in deep poverty in country's mining districts and it is very important and crucial that DMF is implemented in the letter and spirit of the MMDR Act, 2015 and states Rule framed under it," the panel's report stated.

WHAT IS THE FUND FOR

  • The PMKKKY was notified in the MMDR Act and its guidelines state that DMF's have to spend 60% of its funds on high priority sectors such as drinking water, sanitation, healthcare, education, women and child welfare, environment, skill development, welfare of aged and differently abled persons.
     
  • The remaining 40% has to be spent on physical infrastructure, irrigation, energy, watershed development and measures to enhance environmental quality in mining districts.
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