Lok Sabha passes Bill to amend MMDR Act

Construction Work Online | March 22, 2021

The Bill also seeks to remove the distinction between captive and merchant mines

The Lok Sabha has passed the Mines and Minerals Development (Amendment) Bill, 2021 which, among others, proposes to free up for auction 572 idle non-coal mining blocks allocated before the auction regime set in with the 2015 amendment of the MMDR Act.

“We are withdrawing that provision of 10A(2)(b) and all these 572 mines will be brought under auction. Some of them are so old,” mines minister Pralhad Joshi said introducing the Bill in Lok Sabha.

The minister said reconnaissance permit (RP) and prospecting licence (PL) given to these blocks should have been converted into mining leases in these many years but “a majority of them have neither applied for it nor the state governments have recommended them.”

These 572 leases are spread over 4.6 lakh hectare area and their minimum worth is Rs 27 lakh crore.

The Bill also seeks to remove the distinction between captive and merchant mines by providing for auction of mines in future without restriction of captive use of minerals.

It also allows existing captive mines including captive coal mines to sell up to 50% of the minerals produced after meeting the requirement of linked end use plants to ensure optimal mining of mineral resources by paying an additional amount to the states. The sale of minerals by captive plants would facilitate increase in production and supply of minerals, ensure economies of scale in mineral production, stabilise prices of ore in the market and bring additional revenue to the states.

“Around 55 lakh, direct and indirect, employment opportunities are expected to be generated through this reform,” Joshi said.

The Bill also empowers the central government to issue directions regarding composition and utilisation of fund by the District Mineral Foundation (DMF).

“Ultimately the state will decide, but there should be uniformity across the states in implementing the DMF,” Joshi said.

Goa is diverting funds meant for mining-affected communities to Covid-19 relief

Scroll.in | Supriya Vohra | Mar 19, 2021

Meanwhile, pleas for assistance from the District Mineral Foundation have been stuck for years.

On April 28, 2018, Devidas Nayak of Molem, a mining-affected village in south Goa, wrote to the authorities managing the District Mineral Foundation funds, explaining that his agricultural land has lost its water holding capacity because the drainage adjacent to the land is full of mining silt resulting in flash floods during the monsoon, making it easy for wild boar and bison to destroy the land.

He sought financial assistance to desilt the nullah, and help in infrastructure for irrigation of his fields. Nayak, who was formerly working with barge transportation (of minerals), had lost his job since the mining industry shut down and needed financial help in protecting his fields. Nearly three years later, on January 6, his letter was forwarded to goa’s water resources department for scrutiny.

Nayak’s plea is among nearly 200 such letters since 2018 that are with bodies controlling Goa’s District Mineral Foundation funds. These letters are from individuals, panchayat members, doctors, legislators, and non-profits representing mining-affected villages, requesting financial assistance for basic needs such as drinking water, water for irrigation, restoration of agricultural land, desilting of agricultural land, education, providing transportation for children and creating health infrastructure – fundamentals of a functioning village. Three years later, while some of these requests have been approved, most are pending or have been deferred indefinitely.

In June 2015 through an amendment in India’s central mining law – the Mines and Minerals (Development and Regulation) Act (MMDR Amendment Act 2015), District Mineral Foundations were introduced in all districts in the country that are affected by mining-related operations, including Goa’s two districts – north and south. These district mineral foundations were tasked with managing and utilising the funds for the interest and benefit of people and areas affected by mining.

Funds diverted
According to documents accessed by Mongabay India, about Rs. 202.5 crores were collected under District Mineral Foundation and of that approximately Rs 42 crore have been spent so far.

However, of the Rs 42 crore spent thus far merely Rs 4 crore have been utilised directly for the mining-affected villages while the rest of the Rs. 38 crore have been diverted towards Covid-19 relief.

In March 2020, when the pandemic struck, the central government came out with an order that said that upto 30% of the District Mineral Foundation funds can be diverted towards coronavirus relief work.

But the central government’s move had come under severe criticism from several quarters including from the organisations working with mining-affected communities.

An analysis of the documents reviewed by Mongabay-India reveals that the District Mineral Foundation funds utilised for Covid-19 have gone into purchasing thermal imaging cameras, quattro machines, test kits, personal protective equipment, micro PCR systems – most of the equipment meant to be utilised in Covid hospitals of major cities of Goa – Panjim, Vasco, Ponda and Margao.

Goa has two districts – north which covers the mining belt, the coastal belt as well as the major cities of Panjim, Mapusa and south which also covers the mining belt, the coastal belt and the major cities of Margao, Vasco and Ponda.

The remaining Rs 4 crore went into providing water to the mining-affected villages, providing transportation facility for school children, pumping water out of the mining pits of a few villages, and desilting agricultural land for the village of Sirigao in north Goa. This utilisation, lawyers and activists say, has come only after being slapped by court orders.

“The District Mineral Foundation authorities have done no work for the benefit of the mining-affected villages of their own accord,” Anamika Gode, an environmental lawyer working for Goa Foundation, a non-profit based in Goa, told Mongabay-India. “If you notice, you will see that only water and transportation facilities have been provided thus far, and only one village has had its agricultural land desilted. Work under the District Mineral Foundation has started only after the repeated intervention of the High Court of Bombay at Goa.”

“It took them two years to even consider these applications,” she added. “And if you notice in the minutes of the meetings, all Covid-related purchase approvals are post-facto.”

In August 2020, two residents of mining-affected villages filed a petition against the Goa government, stating that the District Mineral Foundation funds have been misused by the state government, questioning the legal basis of the diversion of funds, and stated that the mining-affected areas have been completely neglected.

Hanumant Parab, a mining activist from Pissurlem, a mining-affected village in north Goa, said that the District Mineral Foundation had provided their village with 117 water tanks of 500 litres capacity each.

“We are yet to get the water though,” Parab told Mongabay-India. “They gave us the tankers two years ago but not a drop of water had come from them yet. They need to provide more tankers also.” The village currently depends on an erratic piped water supply from the government, and mining companies are mandated to provide water to some of the wards every day.

Gode added that since mining had halted in Goa, the District Mineral Foundation funds would remain limited, and thus diverting them for coronavirus relief work was not a good idea, when the funds are specifically needed for the rehabilitation of mining-affected villages.

Mining in Goa has had a deep impact on Goa’s agriculture activities and on the communities involved in mining – directly or indirectly. The mining industry has been halted due to court orders but the state government is trying to restart mining activities to revive the state’s economy.

Courts driving funds
In October 2018, the High Court of Bombay at Goa, based on a 2017 writ petition filed by Goa Foundation, ordered the Goa government to provide piped water supply to Sonshi village, take steps to control dust pollution and provide transportation facilities to the school-going children.

Sonshi, a village in north Goa, is surrounded by five mining leases and has been badly affected by mining. What was once famous for its horticulture, the village has been reduced to dust and misery because of mining activity over the years. Problems of noise, dust pollution, the safety of children as they go to school, destruction of land and lack of water are just some of the issues the village with 350 households has been facing for years.

In the same order, the Bombay High Court criticised the District Mineral Foundation Rules 2016 for not following the objectives set out by the central government, for having no representation from the mining-affected communities, and for being aimed more at investing the funds for the future as opposed to using them currently for the benefit of the mining-affected regions, as originally envisaged by the central government. In January 2019, the state government notified the new District Mineral Foundation Rules 2018.

According to official data, North Goa District Mineral Foundation has a total of Rs 105.34 crore and has used about Rs. 27.9 crore of this fund. Of this, nearly Rs 24 crore have gone into Covid-19 care.

From the remaining Rs 3.9 crore, approximately Rs 50 lakh were spent on providing water through tankers and pipelines to villages in the mining-affected areas, Rs 31 lakh to provide transportation to school-going children, and Rs 45 lakh to pump water out from mining pits in Pali, Surla, Veguem, Sonshi and Pissurlem villages of north Goa.

In a win for the mining-affected villages, but a reminder that the authorities controlling District Mineral Foundation funds only acts on court orders, the mining-affected village of Sirigao in north Goa won a ten-year-old battle in the high court case.

North Goa District Mineral Foundation to provide Rs 2 crore towards desilting of the rivulets, agriculture fields and reconstruction of existing sluice gates so that their agricultural activity could revive. And indeed, by January 2020, their fields were full of paddy again.

South Goa District Mineral Foundation had Rs 97.43 crore in its coffers, and, of that, it used Rs 14.95 crore.

Of that, Rs 14.10 crore went towards Covid-19 relief work while the remaining Rs 85 lakh were utilised for providing drinking water to the mining-affected villages in south Goa, and transportation facilities to school-going children.

Indefinite delays
Apart from the lack of priority and initiative towards the mining-affected villages, the DMF funds have also been criticised for a tardy administrative function.

According to the minutes of the meeting, that took place for the North Goa District Mineral Foundation in June 2020, it was decided that all applications will be routed via the concerned departments – water queries to the water resource department, education-related queries to the education department.

However, no information was given about this change, so the individuals would continue to send their applications to the District Mineral Foundation authorities, who would then send them to the department concerned for scrutiny who would then respond if it was worthy of funding or not and a final decision would be taken by the governing council at meetings that are supposed to be held once every three months. Another problem that cropped up was the lack of ease of obtaining information from the website.

“There is no dedicated website for District Mineral Foundation,” said Gode. “Some sporadic information has been provided in PDF documents on the mines department website.”

“How is anyone ever going to update themselves on the status of the application? How will they ever know what happened to their application?” she asked.

“Goa could have been a model state for District Mineral Foundation activity,” she said. “Mining came to a halt, the government had a real opportunity to rehabilitate the villages and we could have really shone because we know that it is possible to bring the fields and water sources alive again and resolve issues, but sadly, the reality is quite different.”

Odisha to use District Mineral Foundation fund for traffic surveillance

The New Indian Express | | March 19, 2021

Odisha government has decided to utilise funds from District Mineral Foundation (DMF) or CSR for integrated traffic management system to check road fatalities in the State.

BHUBANESWAR: Odisha government has decided to utilise funds from District Mineral Foundation (DMF) or CSR for integrated traffic management system to check road fatalities in the State. The Commerce and Transport department has asked all districts to install CCTV surveillance system for intelligent enforcement of traffic violations at vulnerable stretches and black spots on highways from the DMF or CSR fund where DMF is not available.

The decision to utilise DMF or CSR fund in road safety activities was taken after the Sundargarh Collector sought approval of the government to implement a similar project in the district out of DMF fund. Principal Secretary of Transport department Madhusudan Padhi said Sundargarh Collector had expressed willingness to implement a project in the district out of DMF fund and it has been approved. “We have asked the collectors of other districts to take up similar projects out of DMF or CSR funds for building surveillance infrastructure to check road fatalities,” he said.

The system to be implemented under Driving Electronic Enforcement to Save Human Lives (DEESHA) scheme will detect the violations through automatic number plate recognition technology and send message to a dedicated command and control centre. The centre will be integrated with SARATHI, VAHAN and e-challan application, which will send message to the registered mobile number of the vehicle / driver about the violation. The e-challan will be generated through the system.

There has been steady increase in number of fatalities in Odisha due to road accidents from 3,931 in 2014 to 5,333 in 2019, an increase of about 36 per cent during the period. Last year, though the number of fatalities was less due to lockdown following the Covid-19 pandemic, there was over 30 pc rise in road fatalities post lockdown.

In view of the rising road deaths, the Supreme Court Committee on Road Safety has directed to intensify enforcement against traffic rule violators and install CCTV cameras at the black spots and on highways, Padhi added. Meanwhile, the Transport Commissioner has initiated bid process for selection of a vendor for implementation of CCTV surveillance on the stretch from Rameswar (Khurda) to Chhatia (Jajpur).

Road fatalities
3,931 accidents in 2014
5,333 accidents in 2019
30 pc rise in road fatalities post lockdown

Now, Centre seeks to control district mineral funds

Financial Express | Surya Sarathi Ray | March 18, 2021

While the guidelines say that 60% of the DMF funds have to be utilised for ‘high priority sectors’ such as drinking water supply and education, 40% is earmarked for ‘other priority sectors’ such as physical infrastructure, energy and cowshed development.

The Centre has inserted a new clause into the Mines and Minerals (Development and Regulation) Amendment Bill, 2021, to take control of the district mineral funds from the state governments. The amendment, part of many changes to the relevant Act cleared by the Cabinet last week and introduced in Parliament on Monday, could spark a political storm. Many would likely see it as yet another bid by the Narendra Modi government to usurp the states’ fiscal powers and undermine their constitutionally defined role in governance.

As per the MMDR (Amendment) Act, 2015, state governments must establish district mineral foundations (DMFs) in all districts affected by mining-related operations; lease holders are required to contribute to these not-for-profit foundations as a defined percentage of royalty, in addition to the royalty paid to state governments. The DMFs are needed to use these funds, total collections stood at over Rs 45,000 crore in September 2020, for the welfare of persons and areas affected by mining-related operations, the tribal population being the principal intended beneficiaries.
The scheme is called Pradhan Mantri Khanij Kshetra Kalyan Yojana.

While the sub-section 3 of Section 9(B) of the MMDR Act brought in through the 2015 amendment, says, “The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government”, the Centre’s new Bill seeks to add a proviso to the sub-section that, “provided that the Central Government may give directions regarding composition and utilisation of fund by (the DMF). Clearly, the idea is to deprive the states of discretion in the utilisation of DMF funds.

The Centre’s unhappiness with the way the states use the DMF kitty or the states being the custodian of these funds came to the fore in March 2020, as finance minister Nirmala Sitharaman suggested, as part of the first tranche of the Atmanirbhar package, that, “We will request the state governments to utilise the funds which are available at the DMF at the district level so that medical testing, medical screening and also providing of health attention will not suffer”.

Sitharaman also cited some “Rs 25,000 crore lying unutilised” with DMFs; however, data gathered by FE show that of Rs 45,096 crore collected by DMFs so far, Rs 42,141 crore has already been sanctioned for over 2 lakh projects. Of course, the amount released so far is Rs 20,337 crore, but that doesn’t show a wider gap between the sanctioned and released amounts than under the government’s other welfare schemes.

The Centre is also apparently worried about reports that states are diverting the DMF funds for other purposes. An mining industry official told FE on condition of anonymity: “Instances of diversion of DMF funds by states have been noticed in the past. By adding this provisio (in the Bill), the Centre may be trying to regulate such practices.”

While the guidelines say that 60% of the DMF funds have to be utilised for ‘high priority sectors’ such as drinking water supply and education, 40% is earmarked for ‘other priority sectors’ such as physical infrastructure, energy and cowshed development.

According to the MMDR Rules 2015, “every holder of a mining lease or a prospecting licence-cum-mining lease shall, in addition to the royalty, pay to the DMF of the district in which mining operations are carried on, an amount at the rate of 10% of the royalty in respect of mining leases or prospecting licence cum-mining lease granted on or after January 12, 2015 and 30% of the royalty in respect of mining leases granted before January 12, 2015”.

The DMF funds collections have been the highest in mineral-rich Odisha (Rs 11,099 crore), followed by Jharkhand (Rs 5,921 crore), Chhattisgarh (Rs 5,830 crore), Rajasthan (Rs 4,121 crore) and Telangana (Rs 2,902 crore).

In recent years, the Centre has come under fire for allegedly showing a tendency to centralise fiscal powers and policymaking – this was reflected in the terms of reference given to the 15th Finance Commission and the increased use of the cess route, which hit the divisible tax pool, to the detriment of states. As the pandemic dented the goods and services tax (GST) revenue and compensation kitty, the states had to put up a fight to make the Centre agree to honour the commitment to compensate them fully, despite a law mandating such succour being in place.

Goa Spent Bulk of Money for Mining-Affected People on COVID-19 Relief

Science The Wire | March 18, 2021

On April 28, 2018, Devidas Nayak of Molem, a mining-affected village in south Goa, wrote to the authorities managing the District Mineral Foundation (DMF) funds, explaining that his agricultural land has lost its water holding capacity because the drainage adjacent to the land is full of mining silt resulting in flash floods during the monsoon, making it easy for wild boar and bison to destroy the land.

He sought financial assistance to desilt the nalha, and help in infrastructure for irrigation of his fields. Nayak, who was formerly working with barge transportation (of minerals), had lost his job since the mining industry shut down and needed financial help in protecting his fields. Nearly three years later, on January 6, 2021, his letter was forwarded to Goa’s water resources department for scrutiny.

Nayak’s plea is among nearly 200 such letters since 2018 that are with bodies controlling Goa’s DMF funds. These letters are from individuals, panchayat members, doctors, legislators, and non-profits representing mining-affected villages, requesting financial assistance for basic needs such as drinking water, water for irrigation, restoration of agricultural land, desilting of agricultural land, education, providing transportation for children, and creating health infrastructure – fundamentals of a functioning village. Three years later, while some of these requests have been approved, most are pending or have been deferred indefinitely.

In June 2015, through an amendment in India’s central mining law – the Mines and Minerals (Development and Regulation) Act 2015 – DMFs were introduced in all districts in the country that are affected by mining-related operations, including Goa’s two districts, north and south. These district mineral foundations were tasked with managing and utilising the funds for the interest and benefit of people and areas affected by mining.

DMF funds diverted for COVID-19

According to documents accessed by Mongabay-India, about Rs 202.5 crore was collected under DMF, and of that approximately Rs 42 crore has been spent thus far. However, of this, merely Rs 4 crore has been utilised directly for the mining-affected villages, while the rest of the Rs 38 crore has been diverted towards COVID-19 relief. In March 2020, when the pandemic struck, the central government came out with an order that said that up to 30% of the DMF funds can be diverted towards coronavirus relief work.

But the central government’s move had come under severe criticism from several quarters including from the organisations working with mining-affected communities.

An analysis of the documents reviewed by Mongabay-India reveals that the DMF funds utilised for COVID-19 have gone into purchasing thermal imaging cameras, quattro machines, test kits, personal protective equipment, micro PCR systems – most of the equipment meant to be utilised in COVID-19 hospitals in major cities of Goa: Panjim, Vasco, Ponda and Margao.

Goa has two districts – north, which covers the mining belt, the coastal belt as well as the major cities of Panjim and Mapusa; and south, which also covers the mining belt, the coastal belt and the major cities of Margao, Vasco and Ponda.

The remaining Rs 4 crore went into providing water to mining-affected villages, providing transportation facilities for school children, pumping water out of the mining pits in a few villages, and desilting agricultural land for the village of Sirigao in north Goa. This utilisation, lawyers and activists say, has come only after being slapped by court orders.

“The DMF authorities have done no work for the benefit of the mining-affected villages of their own accord,” Anamika Gode, an environmental lawyer working for Goa Foundation, a non-profit based in Goa, told Mongabay-India. “If you notice, you will see that only water and transportation facilities have been provided thus far, and only one village has had its agricultural land desilted. Work under the DMF has started only after the repeated intervention of the High Court of Bombay at Goa.”

“It took them two years to even consider these applications. And if you notice in the minutes of the meetings, all COVID-related purchase approvals are post-facto,” she added.

In August 2020, two residents of mining-affected villages filed a petition against the Goa government, stating that the DMF funds have been misused by the state government, questioning the legal basis of the diversion of funds, and stated that the mining-affected areas have been completely neglected.

Hanumant Parab, a mining activist from Pissurlem, a mining-affected village in north Goa, said that the DMF had provided their village with 117 water tanks of 500 litres capacity each.

“We are yet to get the water though. They gave us the tankers two years ago but not a drop of water had come from them yet. They need to provide more tankers also,” Parab told Mongabay-India. The village currently depends on an erratic piped water supply from the government, and mining companies are mandated to provide water to some of the wards every day.

South Goa DMF had Rs 97.43 crore in its coffers, and, of that, it used Rs 14.95 crore. And of that, Rs 14.10 crore went towards COVID-19 relief work while the remaining Rs 85 lakh was utilised for providing drinking water to the mining-affected villages in south Goa, and transportation facilities to school-going children.

Indefinite delays and lack of access

Apart from the lack of priority and initiative towards the mining-affected villages, the DMF funds have also been criticised for tardy administration.

According to the minutes of the meeting that took place for North Goa DMF in June 2020, it was decided that all applications will be routed via the concerned departments: water queries to the water resource department, education-related queries to the education department.

However, no information was given about this change, so the individuals would continue to send their applications to the DMF authorities, who would then send them to the department concerned for scrutiny who would then respond if it was worthy of funding or not and a final decision would be taken by the governing council at meetings that are supposed to be held once every three months. Another problem that cropped up was the lack of ease of obtaining information from the website.

“There is no dedicated website for DMF,” said Gode. “Some sporadic information has been provided in PDF documents on the mines department website. How is anyone ever going to update themselves on the status of the application? How will they ever know what happened to their application?” she asked.

“Goa could have been a model state for DMF activity,” she said. “Mining came to a halt, the government had a real opportunity to rehabilitate the villages and we could have really shone because we know that it is possible to bring the fields and water sources alive again and resolve issues, but sadly, the reality is quite different.”

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