National Workshop on District Mineral Foundation

DMF/PMKKKY at a Glance

Government of India made an amendment in the Mines and Minerals (Development and Regulation) Act (1957) in January 2015, making provision for the establishment of District Mineral Foundation (DMF) in any district affected by mining related operations. The DMFs are meant to address the long standing demand of the local people in mining areas for inclusive growth. The DMFs are funded by statutory contributions from holders of mining lease. The DMF is to be funded in the following manner:

(a) 10% of royalty paid in respect of mining leases granted on or after 12th January, 2015; and

(b) 30% of royalty paid in respect of mining leases granted before 12th January, 2015

The Government has formulated Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) to be implemented by the DMFs of the respective districts. It has been issued as a directive under Section 20A of the Act by the Central government on 16.09.2015. The objective of PMKKKY scheme will be:

(a) to implement various developmental and welfare projects/programs in mining affected areas

(b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people.

(c) to ensure long-term sustainable livelihoods for the affected people.

 

It is in the interest of the State Governments to expedite the setting up of DMF so that these funds being accrued may start getting utilized for the welfare and development of these areas as laid down by the PMKKKY scheme. Such welfare activities are bound to create goodwill for the mining industry amongst local population. The key statistics are as below:

  • Total funds to the tune of Rs. 23, 000 crore have been collected under DMF.
  • Top 5 States with maximum collection are Odisha (Rs. 5838.26 Crore) , Jharkhand (Rs. 3426.69 Crore), Chhattisgarh (Rs. 3336.29 Crore), Rajasthan (Rs. 2340.05 Crore), Telangana (Rs. 2028.87 Crore)

Top 5 Districts with maximum collection are Keonjhar in Odisha – Rs. 2217.22 crore, Korba in Chhattisgarh – Rs. 1275.96 crore, Singrauli in Madhya Pradesh – Rs. 1131.89 crore, Sundergarh in Odisha – Rs 1077.06 crore and Angul in Odisha – Rs.924.91 crore.

 

 

 

S.No State No. of Districts in which DMFs have been set up Total Collection
(Rs. In Cr.)
Amount Allocated

(Rs. In Cr.)

Amount Utilized
(Rs. In Cr.)
1 Andhra Pradesh 13 612.94 430.44 98.83
2 Chhattisgarh 27 3336.29 4387.03 2488.61
3 Goa 2 186.94 3.22 1.00
4 Gujarat 32 458.48 367.73 130.24
5 Jharkhand 24 3426.69 2079.05 750.83
6 Karnataka 30 1272.78 638.42 54.31
7 Maharashtra 35 1066.03 408.95 157.76
8 Madhya Pradesh 51 1983.22 1649.71 528.05
9 Odisha 30 5838.26 5128.25 933.88
10 Rajasthan 33 2340.05 2295.01 438.89
11 Tamilnadu 30 378.08 179.98 18.68
12 Telangana 30 2028.87 388.81 29.32
13 Assam 33 53.17 31.22 0.05
14 Bihar 38 39.39 3.25 0.38
15 Himachal Pradesh 12 96.49 2.67 0.00
16 Jammu & Kashmir 22 22.39 1.66 0.00
17 Kerala 0 9.94 0.00 0.00
18 Meghalaya 5 30.07 0.00 0.00
19 Uttarakhand 13 21.02 8.20 0.47
20 Uttar Pradesh 75 378.84 182.87 94.86
21 West Bengal 22 26.16 2.93 0.36
Sub-Total 557 23606.11 18189.39 5726.50

PMKKKY mandates that at least 60% of the funds to be utilized for Projects in High Priority Areas:

Sector wise work Amount Utilized

(Rs. in Cr.)

Drinking water supply 1039.37
Environment Preservation and pollution control measures. 113.63
Health 467.09
Education 1020.87
Welfare of Women and Children. 135.54
Welfare of aged and disabled people. 36.26
Skill development 136.39
Sanitation 460.67

 

Up to 40% of the funds to be utilized for Projects in Other Priority Areas

Sector wise work Amount Utilized

(Rs. in Cr.)

Physical infrastructure 1374.59
Irrigation. 182.7
Energy and watershed development. 217.33
Any other measures for enhancing environmental quality in mining district. 59.2

 

 Audit

To realize objectives of the scheme & reliable financial reporting on its operations emphasis is being laid on completing the audit of fund utilized under DMF at least on completion of financial year. To further strengthen the audit, performance and social audit should be undertaken by DMFs.

 

Planning

Annual Planning exercise should be undertaken by the DMFs for identifying projects in consultation with Gram Sabhas and people affected by mining, along with 2 tier administrative setup of Managing Committee and Governing Council.

 

PMKKKY Portal

PMKKKY portal (http://mitra.ibm.gov.in/pmkkky) has been launched in March 2018. At any given point of time updated information about the funds, projects etc. is available online. Beneficiary data collection has been initiated.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s