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DMFs still to be a reality in most mining states

Fresh holders of a mining lease or a prospecting licence-cum-mining lease to pay the DMF an amount equivalent to one-third of such royalty.

Written by Priyadarshi Siddhanta | New Delhi | Published: June 21, 2015 12:40:30 am
mine, dmf, district mineral foundation, mines and minerals, mines, minerals, ccec, business news Miners whose leases were granted before the passage of the Act would pay an amount equivalent to royalty.

Mineral-rich states, barring Goa and Madhya Pradesh, are yet to notify setting up of the District Mineral Foundations (DMFs), as mandated under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, which was passed nearly three months ago.

The issue came up to light when Union mines secretary Anup Pujari, at the coordination-cum-empowered committee (CCEC) on June 5, asked for an update on the status of DMFs from representatives of eleven states. As per the (MMDR) Amendment Act, 2015, state governments are mandated to notify to establish a trust — DMF — as a non-profit body in every mining district. The object of such a foundation is to work for the interest and benefit of people and areas affected by mining related operations.

The Act specifies that fresh holders of a mining lease or a prospecting licence-cum-mining lease to pay the DMF an amount equivalent to one-third of such royalty. Also miners whose leases were granted before the passage of the Act would pay an amount equivalent to royalty.

As per a response sheet filled in by representatives at the meeting, Andhra Pradesh and Gujarat, with 13 and 32 mineral-rich districts, respectively, are likely to set up DMFs in July, while Chhattisgarh would do so by June 30. Karnataka, which has 32 mining districts, is also likely to notify setting up of DMFs next month. However, Orissa, one of the major mineral-rich states, has neither decided on the number of districts where DMFs would be set up, nor has it notified. The state stated that it would do so by September this year.

Meanwhile, while Rajasthan is yet to notify by July 30 and constitute DMFs by August 30, Telangana has already started the notification process. Goa and MP, the only states to notify setting up of DMFs on May 5, are likely to set up these foundations by August.

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