Image 1 – Locations of DMF Projects surveyed in Korba District
ABSTRACT – To assess the accountability of DMFT, legitimacy of utilization of DMFT Funds, monitor compliance to the provisions mentioned in the DMFT Act and communities’ participation in the planning, monitoring & evaluation process, a pilot study of 574 DMFT projects were conducted in Chhattisgarh, Jharkhand, Odisha and Rajasthan. The Ground Analysis was conducted by Environics Trust and Mineral Inheritors Rights Association.
Background – The Mines and Minerals (Development & Regulation) Act, 1957 (a principal Act) was mooted for development of mining and through it for industrial development banking upon such minerals mined for producing end use products, use as raw material and export beneficiated minerals and products. This created a history of industrial development with large PSUs like SAIL, NTPC, Coal India limited, NMDC and several others making mineral bearing areas their home of exploration, extraction and value addition. The conventional process of mining lease award for mining took into stride surface rights of those who had usufruct, traditional and other rights embedded in the mineral areas and nothing much was to be gained by such right holders, instead mining brought a sense of negligence and usurping of community and individual resources, especially land.
On 17th September 2015, the Ministry of Mines exercising powers conferred by sub-section (5) and (6) of Section 9B of the MMDR (Amendment) Act 2015, brought the ‘Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015 which shall be deemed to have come into force on the 12th day of January, 2015 where in it further reduced the contribution from 33% (upper limit) of royalty equivalent, in addition to royalty for leases issued on or after 12.01.2015 to 10% and specified the contribution by lessees to 30% for leases issued before 12.01.2015.
On the same line, the Ministry of Mines through it order dated 16.9.2015 and in a press release issued on 17th September announced PMKKKY guidelines using powers conferred to the Central Government under 20A of MMDR Act 1957. The then Minister of Mines and Steel Shri Narendra Singh Tomar5 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.” The scheme defined how the funds accumulated in DMF will eventually be spent, prescribing a ratio of 60:40 (high priority areas and
other priority areas). The state Governments were directed to incorporate PMKKKY in the rules framed by them for the DMFs.
The report is in two volumes – Vol. I is the main report which has two parts detailing the District Mineral Foundation Trust’s
evolution and related working aspects of it and the second part reflects the survey findings from various districts in four states of Chhattisgarh, Jharkhand, Odisha and Rajasthan. Vol. II contains the annexures (tables related to district surveys) and photographs
