New Delhi | April 25, 2016: Five major mineral-rich states are yet to set up District Mineral Foundation (DMF) - a local benefit sharing mechanism - even after a year of the new mining law, which introduced this provision.

The Mines and Minerals (Development & Regulation) Amendment Act, 2015, known as MMDRA Act, 2015, which was passed by Parliament in March last year , mandated DMFs in all districts affected by mining related operations.

According to information provided by the states to the central government, it has come to light that Jharkhand, Maharashtra, Rajasthan, Tamil Nadu and Telangana are yet to constitute DMFs.

In India, most districts affected by mining related operations are extremely poor, not having even basic amenities like clean water, schools or hospitals.

Andhra Pradesh and Gujarat have constituted DMF in mining affected districts, but they have not started collecting funds for it as yet. The Odisha government has collected a total of Rs 274 crore for its DMFs. Similarly, the Chattisgarh government has collected a total of Rs 251 crore for its DMF.

According to the new mining law, any mining licence or composite licence (prospecting licence-cum-mining licence) would be granted by state governments through auction route only. Such licence owners would have to pay DMF an amount equivalent to 10 per cent of the royalty. All mining licences were granted on discretionary basis by state governments under the old law. Such licence owners would have to pay DMFs an amount equivalent to 30 per cent of the royalty.

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 will get at least 60 per cent share of the funds.

For creating a supportive and conducive living environment, remaining funds will be spent on making roads, bridges, railways, waterways projects, irrigation and alternative energy sources.

IN THE SLOW LANE

• Jharkhand, Maharashtra, Rajasthan, Tamil Nadu and Telangana are yet to constitute District Mineral Foundation
• Andhra Pradesh and Gujarat have constituted DMF in mining affected districts, but they have not started collecting funds for it as yet
• Odisha and Chhattisgarh have collected a total of Rs 274 crore and Rs 251 crore for their DMFs, respectively
• Miners - which have been awarded licences under new mining law - have to pay DMF to amount equivalent to 10 per cent of the royalty

(Source: http://www.business-standard.com/)