BHUBANESWAR | Jun 04, 2015: Even as Chief Minister Naveen Patnaik directed Rural Development Department to prepare a master plan within 45 days for infrastructure development in mineral bearing districts, the State Government is yet to set up District Mineral Foundation (DMF) as mandated in the MMDR Amendment Act, 2015.

“The draft rules for creation of DMF is prepared and the draft has been sent to the Chief Minister for his approval,” Minister of State for Steel and Mines Prafulla Mallick said.

Mining lease holders and other stakeholders in mining sector are in the dark about the draft rules as they have not been consulted by the Government.

As per the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the State Government by notification will establish a trust, a non-profit body, to be called the DMF for districts affected by mining related operations.

“Since the objective of the DMF is to work for the interest and benefit of people and areas affected by mining related operations, the State Government should go for wider consultation before framing the rules,” a representative of Eastern Zone Mining Association (EZMA), who did not wish to be identified, said.

The rules for the proposed Trust for DMF should be framed in such a way that the resources made available at the district level are utilised with wisdom and foresight for benefit and sustainable development of people of the area, industry sources said.

Instead of taking piecemeal approach, the State Government should prepare an integrated action plan for each of the mineral-bearing districts keeping in mind the short-term and long-term requirements of local people, the sources said.

The proposed DMF should not suffer from ad hocism as is faced by Odisha Mineral Bearing Area Development Corporation (OMBADC).

A special purpose vehicle, OMBADC, was created by the Government in April, 2014 following the Supreme Court order to carry out developmental activities in mineral- rich regions of the State. However, it is in a state of limbo even after one year of its formation. The State Government is expecting mining royalty of `1,500 crore to `2,000 crore to the DMF from Keonjhar district alone.

Even as MMDR Amendment Act, 2015 came into force from March 27, the tax to be paid as royalty to the DMF will be with retrospective effect from January 1, 2015.

Though the amount to be paid to DMF has been fixed at 33 per cent of the royalty payable, the existing miners will have to pay 100 per cent royalty over and above the royalty paid by them to the State Government.

(Source: http://www.newindianexpress.com/)