Government notifies miners contribution to District Mineral Foundation

NEW DELHI: The government today said miners who were awarded leases before January 12, 2015 will have to contribute 30 per cent of the royalty to the District Mineral Foundation (DMF), while those given after January 12 will deposit 10 per cent.

The government also launched the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), which will work on schemes for the welfare of areas and people affected by mining utilising funds generated by the DMFs, an official statement said today.

"The Central Government today notified the rates of contribution payable by miners to the DMFs," it added.

In case of mining leases executed before January 12, 2015 (the date of coming into force of the MMDR Act) miners will have to contribute an amount equal to 30 per cent of the royalty payable by them to the DMFs, it said.

For the mining leases that are granted after January 12 this year, the rate of contribution would be 10 per cent of royalty payable, it added.

"Using the funds generated by this contribution, the DMFs are expected to implement the PMKKKY," the statement said.

In March, Mines and Mineral (Development and Regulation) Amendment Bill, 2015 (MMDR Act) was passed, paving the way for auction of major mineral-bearing mines. It also stipulates creation of a DMF for the interest and benefit of the persons and areas affected by mining-related operations.

On PMKKKY, Steel and Mines Minister Narendra Singh Tomar said: "PMKKKY is a revolutionary and unprecedented scheme of its kind, which will transform the lives of people living in areas which are affected directly or indirectly by mining."

Under PMKKKY, 60 per cent of funds will be utilised for high priority areas like drinking water supply, health care, sanitation, education, skill development, women and child care, welfare of aged and disabled people, skill development and environment conservation, the statement said.

The remaining contribution will be spent on constructing roads, bridges, railways, waterways projects, irrigation and alternative energy sources, it added.

The Centre has issued a directive to the states under Section 20A of the MMDR Act, 1957, laying down the guidelines for implementation of PMKKKY and directing them to incorporate the same in the rules framed by them for the DMFs.

DMFs will have to consult the gram panchayats in the district while taking major decisions and will have to provide periodic reports on the projects undertaken by them.