Panaji | Aug 09, 2017: The comptroller and auditor general (CAG) has hauled up the department of mines and geology (DMG) for its failure to make the district mineral foundation (DMF) operational following its constitution. The foundation envisages improving the economic status of communities in mining areas in Goa.

"The government is still in the process of framing the DMF fund committee. Hence, no benefit has been extended to the beneficiaries," CAG has stated in its annual report for the year ending March 2016.

Section 9B of the Mines and Mineral (Development and Regulation) Amendment Act, 2015 states that the leaseholder should contribute 30% of the royalty paid for mining leases granted before January 12, 2015, to the DMF.

The foundation was expected to plough back funds collected from the contribution, and utilise them for the welfare of persons and areas affected by mining-related operations. Goa Mineral Foundation (GMF), a body formed by some mining firms, voluntarily contributes some infrastructure for people in mining areas. A few projects, such as primary schools, have been built for people of affected communities.

The CAG checked 38 cases to verify whether lease holders paid their contribution. In one case, which has been cited in its latest report, a lessee paid Rs 2.53 crore as royalty between January 29, 2015 to December 7, 2015. The audit agency, however, has hauled up the mines department for not collecting Rs 76 lakh 30% of the total amount towards the DMF fund.

After being pulled up, the department, in a reply dated August last year, stated that a showcause notice for recovery of the DMF amount was issued to the lessee.

CAG has further rapped the DMG in the same case for not collecting another 2% on the royalty paid by the lease holder, towards the National Mineral Exploration Trust, which explores mines across India.

(Source: http://timesofindia.indiatimes.com/)