Lok Sabha Question No. 330 (STARRED), answered on 2016-12-08
Subject: Welfare Schemes/Programmes by Mining Companies
Ministry: MINES
Asked by: LAXMAN GILUWA, HARISHCHANDRA DEORAM CHAVAN

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA STARRED QUESTION NO.330 TO BE ANSWERED ON 8 TH  DECEMBER, 2016

## WELFARE SCHEMES/PROGRAMMES BY MINING COMPANIES

## *330. SHRI LAXMAN GILUWA: SHRI HARISHCHANDRA CHAVAN:

Will the Minister of MINES be pleased to state:

- (a) the details of welfare schemes/programmes being run by the mining companies operating in the tribal areas of the country along with the rules/guidelines framed for the same;
- (b) whether several companies have not implemented the said schemes/ programmes during the last three years; and
- (c) if  so, the details thereof and the action taken by the Government thereon along with the outcome achieved as a result of the same?

## ANSWER

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

- (a) to (c): A statement is laid on the Table of the House.

STATEMENT  REFERRED  TO  IN  REPLY  TO  LOK  SABHA  STARRED  QUESTION NO.330 FOR REPLY ON 8 TH DECEMBER, 2016 REGARDING 'WELFARE SCHEMES/ PROGRAMMES BY MINING COMPANIES' ASKED BY SHRI LAXMAN GILUWA & SHRI HARISHCHANDRA CHAVAN.

(a): The  mining  companies  operating  in  tribal  areas  and  otherwise  are  required  to comply with the provisions contained in the Mines Act, 1952 and Mines Rules for the welfare of workers employed in mines.  Besides the welfare activities for the employees of mines, the mining companies are also obliged under Corporate Social Responsibility (CSR) to  spend  at  least  two  percent  of  the  average  net  profit  of  the  company  made during the three immediately preceding financial years, towards implementation of CSR activities  as  per  the  CSR  policy  framed  by  the  company  under  Section  135  of  the Companies  Act,  2013.    Proviso  to  Section  135(5)  of  the  Companies  Act,  2013  also mandates that the companies shall give preference to the local area and areas around it where they operate for spending the amount earmarked for CSR activities.

In  addition,  Section  9B  of  Mines  and  Minerals  (Development  and  Regulation) (MMDR) Act, 1957 provides for establishment of District Mineral Foundation/ Jila Khanij Pratishthan (DMF) in each district affected by mining related operations. The DMF is funded  by  statutory  contributions  from  holders  of  mining  lease.  The  Pradhan  Mantri Khanij  Kshetra  Kalyan  Yojana  (PMKKKY)  provides  implementation  framework  for schemes to be undertaken for welfare and development of mining affected areas and people  through  the  funds  collected  under  DMFs.  Directions  in  this  regard  have  been issued  under  section  20A  of  MMDR  Act,  1957  on  16.09.2015  to  all  the  State Governments to incorporate  PMKKKY into the rules framed by them for the DMF.

PMKKKY provides  for  utilization  of  at  least  60%  of  the  funds  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 (i) physical infrastructure; (ii) irrigation; (iii) energy and watershed development; and (iv) any other measures for enhancing environmental quality in mining district.

(b) & (c) :The details of implementation or non-implementation of welfare schemes/programmes as well as activities carried out by mining companies under CSR is not maintained by Ministry of Mines.  However, the second proviso to Section 135(5) of the Companies Act, 2013 mandates that if the company fails to spend such amount as mentioned in sub- section 5 of Section 135, the Board shall, in its report made under clause  (o)  of  sub-section(3)  of  section  134,  specify  the  reasons  for  not  spending  the amount.

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