New Delhi: The Mines and Minerals (Development and Regulation) (MMDR) Amendment Bill, 2021, introduced in the Lok Sabha Monday, laid provision for bringing utilisation and composition of District Mineral Foundation (DMF) fund under the purview of the Union government.
The Bill introduced by Union Minister of Coal and Mines Pralhad Joshi seeks to amend the Mines and Minerals (Development and Regulation) Act, 1957 which empowered the state government to prescribe functions of DMF. Among the amendments in several provisions, the Bill seeks to amend section 9B of the principal act to empower the Union government to issue directions regarding composition and utilisation of fund by the DMF.
“After sub-section (3), the following proviso shall be inserted, namely: Provided that the Central Government may give directions regarding composition and utilisation of fund by the District Mineral Foundation,” reads the Bill introduced in Lok Sabha Monday.
However, the Mines and Minerals (Development and Regulation) Act, 1957, empowers the state governments to prescribe the composition and functions of the DMF. The sub-section 3 of section 9B of MMDR Act 1957 states that the composition and functions of the foundation shall be such as may be prescribed by the state government.
Earlier, Orissa POST had in August reported that the Centre is planning to make changes in the rules of District Mineral Foundation.
It is to be mentioned here that the objective of the foundation 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 a participatory mode, in consultation with gram sabhas of the respective villages.
The holder of a mining lease, in addition to the royalty, pays to the District Mineral Foundation of the district in which the mining operations are carried on, an amount which is equivalent to the percentage of the royalty if the lease has not been granted through auction and 25 per cent of the royalty, if the lease has been granted through auction.
Significantly, Congress MP Shashi Tharoor opposed the introduction of the Bill saying that the Bill is violative of Article 48 (A) of the Constitution because it fails to acknowledge the adverse impact on environment and biodiversity by stipulating automatic transfer of rights, approvals, clearances and licences from previous lease holders to the new owners.
He also said the Bill impinges upon the federal structural of the state as prescribed by the Constitution by awarding the power to the Union government alone to auction of mines owned by the states thereby encroaching upon the rights exercised by the state to hold auctions.
Kuldeep Singh, OP
