Lok Sabha Question No. 469 (STARRED), answered on 2017-04-06
Subject: Welfare Provisions under PMKKKY
Ministry: MINES
Asked by: BHAGIRATH PRASAD

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA STARRED QUESTION NO. *469 TO BE ANSWERED ON 06 TH  APRIL, 2017

## 'Welfare Provisions under PMKKKY'

## *469.  DR. BHAGIRATH PRASAD:

- (a) the estimated value of the minerals excavated from the tribal areas in the country during the last five years;
- (b) the percentage of the value of minerals provided for the welfare of the areas and people affected by the mineral related operations during the said period;
- (c) whether provisions under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)  permit  expenditure  of  certain  percentage  of  the  mineral  income  for  the welfare of tribals and if so, the details thereof; and
- (d) the regulatory measures adopted by the Government to ensure the implementation of the said provisions?

## ANSWER

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

- (a) to (d): A statement is laid on the table of the House.

## THE  STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED QUESTION  NO.  469  REGARDING  WELFARE  PROVISIONS  UNDER  PMKKKY RAISED  BY  DR.  BHAGIRATH  PRASAD,  MEMBER  OF  PARLIAMENT  FOR REPLY ON 06 th APRIL, 2017.

(a) :  The information on value of minerals excavated from the tribal area in the country is not maintained centrally. However, details of the value of minerals produced state-wise including the  minerals  excavated  from  tribal  areas  in  the  country  during  last  five  years  are  given  as ANNEXURE .

(b):  The Mines and Mineral (Development and Regulation) Act, 1957 (MMDR Act, 1957) was amended through the MMDR Amendment Act, 2015. One of the amendment provisions relates to introduction of section 9B which provides for the establishment of District Mineral Foundation (DMF) in any district affected by mining related operations.  The object of the DMF is to work for the interest and benefit of persons and areas affected by mining related operations.  The  Minerals  (Contribution  to  District  Mineral  Foundation)  Rules,  2015  were framed  under  section  9B  of  the  Mines  and  Minerals  (Development  and  Regulation)  Act, 1957, to prescribe the rates of contribution to District Mineral Foundation (DMF) by holder of  mining  leases  and  prospecting  licence-cum-mining  lease.  The  said  Rules  have  been notified in the Official Gazette on 17.09.2015. As per the said rules every holder of a mining lease or a prospecting licence-cum-mining lease shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount at the rate of-

(i) ten per cent (10%) of the royalty paid in terms of the Second Schedule to the Mines and Minerals (Development and Regulation ) Act, 1957 in respect of mining leases  or,  as  the  case  may  be,  prospecting  licence-cum-mining  lease  granted  on  or after 12th  January, 2015; and

(ii) thirty per cent(30%) of the royalty paid in terms of the Second Schedule to the said  Act  in  respect  of  mining  leases  granted  before  the  12th  January,  2015.  The amount  notified  as  contribution  to  the  DMF  is  directly  collected  by  the  State Governments and credited to the DMFs concerned .

(c): To  facilitate  synergy  in  implementation  of  DMF  across  the  States,  the  Central Government has launched the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) with the objective of the welfare of areas and people affected by mining related operations, using the funds generated by DMF. Direction in this regard has been issued under Section 20A  of  MMDR  Act  on  16.09.2015  to  all  the  States  Governments/UTs  to  incorporate  the PMKKKY into the rules framed by them for DMF.

At least 60% of the funds under DMF 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.

Para-3  of  the  guidelines  issued  for  PMKKKY  provides  for  special  provisions  for Scheduled areas which read as under:

' The  process  to  be  adopted  for  utilization  of  DMF  and  PMKKKY  funds  in  the scheduled areas shall be guided by the provisions contained in Article 244 read with Schedule V and Schedule VI to the Constitution relating to administration of the  Scheduled  Areas  and  Tribal  Areas  and  the  Provisions  of  the  Panchayats (Extension to the Scheduled Areas) Act, 1996 and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.'

(d): To  ensure  implementation  of  the  PMKKKY,  the  DMF  Trust  will  prepare  and maintain a website on which, inter-alia, the following information will be hosted and kept updated:-

- (i) Details of composition of the DMF/bodies of DMF (if any);
- (ii) List of areas and people affected by mining;
- (iii)Quarterly details of all contributions received from lessees and others;
- (iv) All meeting agenda, minutes and action taken reports (ATRs) of the DMF;
- (v) Annual Plans and budget, work orders, Annual Report;
- (vi) Online  status  of  ongoing  works  -  implementation  status/progress  of  all  the projects/programs; and
- (vii) Voluntary disclosures under RTI Act.

Further,  the  accounts  of  the  DMF  shall  be  audited  every  year  by  a  chartered accountant appointed by the DMF, or in such other manner as the Government may specify, and the report thereof shall be placed in the public domain alongwith the Annual Report.

Every  year,  within  three  months  from  the  date  of  closure  of  the  financial  year,  the DMF  Trust  shall  cause  to  prepare  an  Annual  Report  on  its  activities  for  the  respective financial  year  and  place  it  before  the  DMF.  The  Annual  Report  will  be  submitted  to  the Government within one month from the date of its approval by the DMF and will also be hosted on the website of the Foundation. The Annual Report of each Foundation shall be laid before the State Legislative Assembly.

Further, the Ministry of Mines is working on development of a national web portal for monitoring the implementation of the DMF/PMKKKY, including the usage of the funds.

*****

ANNEXURE  REFERRED  IN  THE  STATEMENT  GIVEN  AS  REPLY  TO  LOK  SABHA STARRED QUESTION NO. 469 REGARDING WELFARE PROVISIONS UNDER PMKKKY RAISED BY DR. BHAGIRATH PRASAD, MEMBER OF PARLIAMENT FOR REPLY ON 06 TH APRIL, 2017

## STATE WISE VALUE OF THE MINERALS DURING LAST FIVE YEARS

(Excluding atomic, fuel and minor minerals)

(Value in Rs. 000)

| State            | 2011-12   | 2012-13   | 2013-14   | 2014-15   | 2015-16 (P)   |
|------------------|-----------|-----------|-----------|-----------|---------------|
| Andhra Pradesh   | 9647317   | 11559385  | 11789709  | 8069745   | 7608882       |
| Assam            | 62585     | 98879     | 50378     | 172962    | 212382        |
| Bihar            | 142686    | 223401    | 247877    | 119709    | 110293        |
| Chhattisgarh     | 103689977 | 92634904  | 94430533  | 91671217  | 56686688      |
| Goa              | 69960585  | 21425739  | 53420     | 44235     | 2189908       |
| Gujarat          | 3649086   | 5276505   | 6155526   | 6691116   | 8669047       |
| Himachal Pradesh | 1196206   | 1692641   | 1663036   | 1969904   | 2115060       |
| Jammu &Kashmir   | 34162     | 26917     | 26996     | 17986     | 152752        |
| Jharkhand        | 22834914  | 23364164  | 26399910  | 25607134  | 18033634      |
| Karnataka        | 40633972  | 44450030  | 58261085  | 63551874  | 44750576      |
| Kerala           | 328786    | 315976    | 314334    | 379149    | 338309        |
| Madhya Pradesh   | 12932260  | 14947731  | 17307658  | 18397277  | 15324527      |
| Maharashtra      | 7961698   | 8703362   | 9789149   | 11405112  | 7927154       |
| Meghalaya        | 1607232   | 2016961   | 2344472   | 2399582   | 2511989       |
| Orissa           | 189145625 | 188276942 | 179701908 | 130693455 | 144839675     |
| Rajasthan        | 51510422  | 67473388  | 67672651  | 71361208  | 79233680      |
| Tamil Nadu       | 5460603   | 6001451   | 6242617   | 6817257   | 6217361       |
| Telangana        |           |           |           | 4086095   | 4225108       |
| Uttar Pradesh    | 514918    | 603901    | 711561    | 528484    | 396454        |
| Uttaranchal      | 78943     | 79215     | 52962     | 69944     | 71683         |
| West Bengal      | 300       | 82        | 134       |           |               |
| Total            | 521392277 | 489171574 | 483215916 | 444053445 | 401615162     |

Source: MCDR returns

Note: This excludes 31 minerals declared as minor mineral vide notification dated 10.02.2015