Should district mineral foundations be with state mining departments?

DownToEarth ||Srestha Banerjee || Thursday 10 January 2019

Recent plan to move Odisha DMF from the state planning and convergence department to the mines department raises several questions

The Odisha government is planning to move its district mineral foundations (DMF) to its steel and mines department from the planning and convergence department. A proposal is pending with Chief Minister Naveen Patnaik’s office, a source said.

The eastern state is the only one in India the planning department is the nodal authority for DMFs. Elsewhere, they are under respective mines departments, as money for them is generated from mining companies operating in affected districts. The amount is determined on the basis of the royalty that companies pay to mines departments. Read more

Why are PSUs spending 80% of CSR funds in mining areas?

Noting that over INR 15,500 crore was disbursed to states for projects under District Mineral Foundation (DMF), a parliamentary panel has asked the government to review mandatory provision of spending 80% of CSR funds by companies in mining areas to avoid overlapping.

DMF has been set up in states under a mining Act to implement welfare projects from a portion of royalty of mining leases while PSUs are also mandated to spend 80 per cent of corporate social responsibility (CSR) funds in mining areas.

“Till August 2018, INR 15,547.83 crore has been collected and disbursed to states to implement welfare schemes under PMKKKY. Read more

Mineral fund “fails to benefit” people living in deep poverty in India’s mining districts

The Parliamentary Standing Committee on Coal and Steel in its Forty-Seventh Report (Sixteenth Lok Sabha) on “Implementation of District Mineral Foundation (DMF) and Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)”, relating to the Ministry of Mines, has regretted that out of of 81,624 projects sanctioned under the DMF, only 22,026 projects worth Rs 4,888 crore have been completed since 2015.
Set up in 2015, DMF is meant to benefit millions of mining affected people living below poverty line, the Committee, Submitted in Parliament on December 27, 2018, notes in its report, but regrets, “Even after a lapse of more than three and a half year of its implementation, there has been a lack of transparency and public accountability in implementation of various schemes under PMKKKY financed by DMF budgets.”  Read more

Need a monitoring mechanism to ensure prompt use of funds under DMF: Parliamentary panel to Mines Ministry

NEW DELHI: Lashing out at the Centre for lack of transparency and accountability in projects under the District Mineral Foundation (DMF), a parliamentary panel has asked it to develop a monitoring mechanism saying only projects worth Rs 4,888 crore could be completed as against a total collection of Rs 21,235 crore until August 2018.

It has also observed that instead of tapping DMF as a tool to alleviate poverty of millions of mining impacted people, the progress was tardy to the extent that out of a total collection of Rs 21,235 crore, projects worth only Rs 15,548 could be sanctioned.

“As against a total collection of Rs 21,235 crore as on August 2018 under the DMF, projects worth Rs 15,548 crore only have been sanctioned so far…out of a total 81,624 projects sanctioned, only 22,026 projects worth Rs 4,888 crore have been completed so far, reflecting non-initiation of schemes under DMF,” the panel headed by Chintamani Malviya said in its recent report tabled in Parliament. Read more

Centre asks states to complete audit of DMF by this fiscal

The Centre has advised the states to complete the audit of District Mineral Foundation (DMF) up to FY2018 by the end of current financial year.

“Most of states have carried out or are in the process of carrying out the audit of DMF,” Minister of State for Mines Haribhai Parthibhai Chaudhary said in a written reply to the Lok Sabha.

All states, he said, have been advised to complete the audit up to the year 2017-18 by end of current financial year.

“Ministry of Mines vide letter dated October 4, 2018 has requested the state governments to audit the funds of DMF utilised under PMKKKY (Pradhan Mantri Khanij Kshetra Kalyan Yojana),” he said.

The minister said, as per the guidelines of September 16, 2018, the accounts of DMF will be audited every year by the Chartered Accountant appointed by the DMF, or in such other manner as the government may specify.

“Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957 provides for establishment of ….DMF in each district affected by mining related operations,” the minister said.

The government had earlier said that at least 60 per cent funds of the DMF, which are being spent for benefit of people affected by mining-related operations, will be utilised in high priority areas like drinking water and pollution control.

It had said that to facilitate synergy in implementation of DMF across states, the centre has launched the Pradhan Mantri Khanij Kshetra Kalyan Yojana with the objective of welfare of areas and people affected by mining-related operations.

Courtesy: Business Standard

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