New Delhi: In order to bring uniformity in guidelines in all states and for better utilisation of funds, the Union government is planning to make changes in the rules of District Mineral Foundation (DMF), a non-profit body established by states in districts affected by mineral explorations.
According to sources, the Mines Ministry has recently proposed several procedural reforms to enhance employment in mineral and mining industry. The ministry, sources said, has proposed certain changes in the DMF guidelines. It has been stated that the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines were issued by the ministry and the states framed their own rules. However, sources said, there is no uniformity in the rules framed by states with regard to PMKKKY.
The ministry, sources said, has proposed to use DMF funds for creation of tangible assets and synergies with goals of national flagship programmes such as electricity, road, water, health, education, skill and nutrition in the mining affected districts across the country.
Significantly, the objective of DMF is to work for the interest and benefit of persons, and areas affected by mining related operations in the manner prescribed by the state government. The DMFs have been directed to take all major decisions in participatory mode, in consultation with gram sabhas.
The holder of a mining lease, in addition to the royalty, contributes to DMF of the district in which the mining operations are carried out. The amount the mining firms pay to the DMF is equivalent to the percentage of royalty, if lease has not been granted through auction and 25 per cent of royalty, if lease has been granted through auction.
It is to be mentioned here that Rs 6,104 crore was collected by DMF in Odisha till December 2018. Around 11,434 projects were sanctioned and Rs 1,011.11 crore was spent on various projects in the state.
