Odisha government notifies DMF Rules

Pegs amount for minor mineral leases

Leaseholders who bag minor mineral leases through auctions need to pay an amount equal to 25 per cent of the royalty towards the District Mineral Foundation (DMF), as per the DMF rules notified by the Odisha government.

The amount to be contributed to the DMF would be equivalent to the royalty if the lease has not been granted through auction. All holders of major mineral leases need to pay to the DMF an amount equivalent to such percentage of royalty as prescribed by the central government. The revenue divisional commissioner or the district collector would chair the board of trustees of DMF.

Member of the Lok Sabha and member of the legislative assembly (MLA) of the concerned constituency where the mineral concession is located would be the ex-officio members of the trust. A maximum of three members from the panchayati raj institutions and urban local bodies from the mineral bearing area can be nominated by the government to the board. The board chairman can also invite other officials to the board meetings whom he considers necessary. The board needs to meet at least twice in a fiscal.

The DMF board has been bestowed with powers to approve the annual budget and action plan for the trust, approve the master plan or perspective plan, decide the priority areas and sectoral allocations, appoint the auditors and approve annual reports, grant administrative sanction of individual projects exceeding the estimated cost of Rs 10 crore and monitor the proper functioning of the trust. The DMF would have an executive committee consisting of the district collector as the chairperson, district level officers drawn from the departments of rural development, works, forest & environment and steel & mines and project director, District Rural Development Agency (DRDA) as members.

The onus would be on the executive committee to monitor day to day management and supervision of the activities of the trust.

The funds of the trust would consist of payment made by lessees of major and mineral leases, all receipts and incomes including interest accrued on the deposits made in the bank and voluntary contributions received by the trust from any person or organisation. The bank account of the trust would be operated by at least two persons, one of whom would be the managing trustee of the board.