Utilise funds with District Mineral Foundations properly, Centre tells states

“As the state governments have started allocating amounts to so many schemes or projects, we think that the funds will either remain unutilised or get pilfered by junior officials. So, we have advised the state governments to focus on just two or three schemes properly. It will help in proper utilisation of funds,” said a senior Central government official.

Chhattisgarh’s 43,484 schemes are spread across sectors such as drinking water supply, environment preservation, pollution control, health and education, among others. Out of around 2 lakh projects of Jharkhand, 761 are related to drinking water and sanitation and 52 are for the health sector. About 99 per cent of Jharkhand’s are for open-defecation free villages.

While 12 mineral-rich states have collected Rs 13,398 crore for their DMFs, they spent only 17 per cent of the amount till the end of 2017. As on November 30, 2017, Madhya Pradesh, Rajasthan, Maharashtra and Andhra Pradesh spent just 10.83 per cent, 20 per cent, 9.03 per cent and 13.97 per cent of the funds, respectively. Madhya Pradesh established its DMF for major minerals on May 15, 2015. Rajasthan, Maharashtra and Andhra Pradesh established DMFs for major and minor minerals on May 31, 2016, September 1, 2016, and June 27, 2015, respectively.

Minor minerals include building stones, gravel, ordinary clay, ordinary sand, limestone used for lime burning, boulders, kankar, murum, brick earth and bentonite. Major minerals include coal, manganese ore, iron ore, bauxite, limestone, kyanite, sillimanite, baryte and chromite.

The MMDRA Act, 2015, mandated the establishment of DMFs — for major as well as minor minerals — in all districts affected by mining-related operations. Most districts affected by mining operations are extremely poor and without basic amenities such as clean water, schools and hospitals.

Any mining licence or composite licence (prospecting licence-cum-mining licence) can be granted by state governments only through the auction route, the Act states. Such a licence-owner company has to pay the DMF — established in the districts where it is mining — an amount equivalent to 10 per cent of the royalty. However, under the old mining law, licences were granted on a discretionary basis by the state governments. The companies with such licences have to pay an amount equivalent to 30 per cent of the royalty towards DMFs.

High priority areas like drinking water supply, health care, sanitation, education, skill development, women and child care, welfare of the aged and disabled people, skill development and environment conservation will get at least 60 per cent share of the funds, as per the rules. For creating a “supportive and conducive” living environment, the mining rules state that the remaining funds will be spent on making roads, bridges, railways, waterways, irrigation facilities and alternative energy sources.