Lok Sabha Question No. 1462 (UNSTARRED), answered on 2021-02-10
Subject: Welfare Schemes in Mining Companies
Ministry: MINES
Asked by: Devendrappa Y

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1462

ANSWERED ON 10.2.2021

## WELFARE SCHEMES IN MINING COMPANIES

1462. SHRI Y. DEVENDRAPPA:

Will the Minister of MINES be pleased to state:

- (a) the details of various welfare  schemes  being  run  by  mining  companies operational in tribal areas across the country;
- (b) the details of the rules and guidelines formulated for the welfare schemes being run in tribal areas;
- (c) whether the said schemes have been implemented by the companies during the last three years and if so, the detailed information thereof; and
- (d) the results of programmes implemented by the above companies?

## ANSWER

## THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

(a) & (b): 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 and to implement the said scheme.

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 other priority areas (i) physical infrastructure; (ii)  irrigation;  (iii)  energy  and  watershed development; and (iv) any other measures for enhancing environmental quality in mining district.

(c) & (d): 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.

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