Lok Sabha Question No. 2707 (UNSTARRED), answered on 2021-03-10
Subject: District Mineral Funds
Ministry: MINES
Asked by: Anubhav Mohanty

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 2707

ANSWERED ON 10.03.2021

## DISTRICT MINERAL FUNDS

## 2707. SHRI ANUBHAV MOHANTY:

Will the Minister of MINES be pleased to state:

- (a)  whether there are regulations in place to ensure regular spending of the District Mineral  Funds  (DMFs)  being  accumulated  from  mining  royalties  and  if  so,  the details thereof;
- (b)  the organisations that are authorised to draw money from DMF for spending;
- (c)  whether the areas where money from DMF can be spent is defined; and
- (d)  if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

- (a): Section 9B of the  MMDR Act, 1957 empowers the State Government to make rules  for  composition  and  functions  of  District  Mineral  Foundation.  Pradhan  Mantri Khanij Kshetra Kalyan Yojna (PMKKKY) guidelines were circulated on 16.09.2015 by the  Union  Government  with  a  direction  to  State  Governments  to  incorporate  the same into the rules framed by them from DMF. It lays emphasis on transparency in implementation of projects, regular audit and publication of annual reports.
- (b): The funds accrued under DMF is spent by the concerned DMF as per the rules framed by the relevant State Governments.
- (c) & (d): With respect to the areas where money from DMF can be spent, following provisions are included in the PMKKKY guidelines issued to States:

## Affected areas:

- a. Directly  affected  areas -  where  direct  mining-related  operations  such  as excavation,  mining,  blasting,  beneficiation  and  waste  disposal  (overburdened dumps, tailing ponds, transport corridors etc.), etc. are located.
- a)  Villages  and  gram  panchayats  within  which  the  mines  are  situated  and  are operational. Such mining areas may extend to neighboring village, block or district on even state.
- b) An area within such radius from a mine or cluster of mines as may be specified by  the  State  Government,  irrespective  of  whether  this  falls  within  the  district concerned or adjacent district.
- c) Villages in which families displaced by mines have resettled/rehabilitated by the project authorities.
- d)  Villages  that  significantly  depend  on  the  mining  areas  for  meeting  their economic needs and have usufruct and traditional rights over the project areas, for  instance,  for  grazing,  collection  of  minor  forest  produce  etc.  should  be considered as directly affected areas.
- b. Indirectly  affected  areas -Those  areas  where  local  population  is  adversely affected on account of economic, social and environmental consequences due to mining-related operations. The major negative impacts of mining could be by way of  deterioration  of  water,  soil  and  air  quality,  reduction  in  stream  flows  and depletion  of  ground  water,  congestion  and  pollution  due  to  mining  operations, transportation of minerals, increased burden  on  existing infrastructure  and resources.

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