Lok Sabha Question No. 1254 (UNSTARRED), answered on 2016-07-25
Subject: District Mineral Foundation
Ministry: MINES
Asked by: SUNIL KUMAR SINGH, NISHIKANT  DUBEY

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO.1254 TO BE ANSWERED ON 25 TH  JULY, 2016

## 'DISTRICT MINERAL FOUNDATION'

## 1254.  SHRI SUNIL KUMAR SINGH: SHRI NISHIKANT DUBEY:

Will the Minister of MINES be pleased to state:

- (a) whether the Government proposes to amend/has made certain amendments to the Mines and Minerals (Development and Regulation) Act, 1957 and if so, the details along with the implementation status thereof;
- (b) whether the Act/rules governing the establishment of District Mineral Foundation  (DMF)  in  the  mining  affected  areas  in  the  country  have  been framed, if so, the details thereof;
- (c) the details of the places identified as mining affected areas by the Government in the country, State-wise including Jharkhand; and
- (d) whether DMF have been set up in all the mining affected areas of the country and if so, the details thereof and if not, the reasons therefor along with the steps taken to set up DMFs where these have not been set up as yet, State/UT-wise?

## ANSWER

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

(a) Ministry of Mines  has amended  the Mines  and Minerals (Development  and Regulation) ( MMDR ) Act, 1957 through the MMDR Amendment Act, 2015 which has come into force with effect from 12th January, 2015.

The most important provision of the MMDR Amendment Act, 2015 is the grant of mineral concessions, for major minerals, through auction by competitive bidding which is a transparent  and  non-discriminatory  method  and  which  will  also  obtain  for  the  State Government its fair share of value of the mineral resources. The other important provisions of the MMDR Amendment Act, 2015 are:

- (i) Transition  provisions  for  extension  of  existing  leases  to  obviate  disruptions  in supply of ore and to ensure regular supply of raw material to the industry;
- (ii) Establishment of District Mineral Foundation ( DMF ) for the interest and benefit of persons, and areas affected by mining related operations;
- (iii)Assured  tenure  and  easy  transferability  of  mineral  concessions  granted  through auction;
- (iv) Establishment  of  National  Mineral  Exploration  Trust  ( NMET )  for  regional  and detailed exploration; and
- (v) Stricter penalty provisions to deter illegal mining.

The  rules to give effect to the  amendments  have  been  framed.  Some  State Governments have already conducted auctions for grant of mineral concessions and most of the  mineral  rich  states  have  established  DMF  and  have  notified  rules  incorporating  the provision of Pradhan Mantri Khanij Kshetra Kalyan Yojana ( PMKKKY ) in this regard. The NMET has been set up and a new National Mineral Exploration Policy (Non-fuel and Non coal Minerals), 2016 has been formulated. The implementation of reforms is an ongoing and continuous process.

(b) to (d) As per the latest information received from the state governments, out of the 12 mineral rich states, 10 states have notified the rules for DMF incorporating the provisions of PMKKKY and others states are in the process of notifying the same.

The  Coordination-cum-Empowered Committee ( CCEC )  serves  as  an  effective  platform  to review the status of implementation of PMKKKY.

The status of DMF establishment and rules made thereunder incorporating the provisions of PMKKKY in 12 minerals rich states are provided below:

|   S.No | States         | Rules notified for DMF   | Constitution ofDMF   | Whether provision related to PMKKKY incorporated   |
|--------|----------------|--------------------------|----------------------|----------------------------------------------------|
|      1 | Jharkhand      | Yes                      | Yes                  | Yes                                                |
|      2 | Chhattisgarh   | Yes                      | Yes                  | Yes                                                |
|      3 | Rajasthan      | Yes                      | Yes                  | Yes                                                |
|      4 | Telangana      | Yes                      | Yes                  | Yes                                                |
|      5 | Madhya Pradesh | Yes                      | Yes                  | Yes                                                |
|      6 | Maharashtra    | No                       | No                   | No                                                 |
|      7 | Odisha         | Yes                      | Yes                  | Yes                                                |
|      8 | Andhra Pradesh | Yes                      | Yes                  | Yes                                                |
|      9 | Goa            | Yes                      | Yes                  | Yes                                                |
|     10 | Gujarat        | Yes                      | Yes                  | Yes                                                |
|     11 | Karnataka      | Yes                      | Yes                  | Yes                                                |
|     12 | Tamilnadu      | No                       | No                   | No                                                 |

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