Lok Sabha Question No. 1334 (UNSTARRED), answered on 2017-02-09
Subject: Utilisation of Mineral Resources
Ministry: MINES
Asked by: JYOTI DHURVE, NARANBHAI KACHHADIA

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1334 TO BE ANSWERED ON 9 TH  FEBRUARY, 2017

## 'UTILISTION OF MINERAL RESOURCES'

## †1334. SHRIMATI JYOTI DHURVE: SHRI NARANBHAI KACHHADIYA:

Will the Minister of MINES be pleased to state:

- (a)  whether the Government  proposes  to  ensure  judicial allocation, scientific exploration and  optimum  utilisation of rare indigenous mineral resources available in the country, if so, the details thereof;
- (b)  whether the Government is aware that development of network of beneficiaries to create atmosphere for responsible mining in the country is an urgent need of the hour; and
- (c)   if so, the details thereof and the efforts made/being made by the Government in this regard?

## ANSWER

## THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  FOR  POWER,  COAL, NEW & RENEWABLE ENERGY AND MINES (SHRI PIYUSH GOYAL)

- (a): The Mines and Minerals (Development and Regulation) ( MMDR ) Act, 1957 has been amended through the MMDR Amendment Act, 2015 which, inter alia, provides for grant of mineral concessions through auction by competitive bidding which is a transparent and non-discriminatory manner for allocation of mineral resources and one  which  meets  the  twin  constitutional  objectives  i.e.,  one,  the  distribution  of mineral resources that vest in the State is to sub-serve the common good and, two, the allocation is not violative of Article 14 of the Constitution of India.

Further, clause (b) of sub-section (2) of section 5 of the MMDR Act stipulates that  a  mining  lease  is  granted  by  the  State  Government  only  if  there  is  a  duly approved mining plan which, inter alia, contains a plan for mining to ensure that the mining is done in a scientific manner for optimal utilization of the mineral resources.

(b) & (c): One of the other important amendment provisions introduced through the MMDR  Amendment  Act  of  2015  is  the  setting  up  of  District  Mineral  Foundation ( DMF ) in every district affected by mining activities, which are to be funded through contributions received from the holders of mining leases. Funds so collected are to be used for carrying  out  works for  the  interest  and  benefit  of  persons,  and  areas, affected by mining related operations.

To  facilitate  synergy  in  implementation  of  DMF  across  the  States,  the Government of India has launched the Pradhan Mantri Khanij Kshetra Kalyan Yojana ( PMKKKY )  with  the  objective  of  welfare  of  areas  and  people  affected  by  mining related  operations,  using  the  funds  generated  by  District  Mineral  Foundations.  At least  60% of PMKKKY funds will be utilized for high priority areas like: (i) drinking water  supply;  (ii)  environment  preservation  and  pollution  control  measures;  (iii) health care (iv)education; (v) welfare of women and children; (vi) welfare of aged and disabled people; (vii) skill development; and (viii) Sanitation. The rest of the funds will be utilized for the following: (i) physical infrastructure; (ii) irrigation; (iii) energy and watershed development; and (iv) any other measures for enhancing environmental quality in mining districts.

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