States initiate steps on district-level foundations for mining affected villages

DMFT fund to be used for creation of infrastructure, upgrade of community assets and skill development of locals

States like Maharashtra, Orissa, Chhattisgarh, Jharkhand and Karnataka have launched exercise for the establishment of District Mineral Foundation Trust  (DMFT) to work for the interest and benefit of persons and areas affected by  mining related operations in the district.

Union Ministry of Mines recently released draft on DMFT’s format and its role. The move aims to take on board the villagers during the pre- and post development of mines.

Sources familiar with the development told Business Standard, “The DMFT will be located at the district place and it will be set up as per the provisions of Mine and  Minerals  (Development & Regulations) Act. The DMFT will use its special corpus for the overall development of the area affected by mining related operations in the district, creation of local infrastructure for socio-economic purposes and providing, maintaining or upgrading of community assets and services for local population in the affected area.”

The DMFT will be managed by the district council wherein the district magistrate will play a key role. Maharashtra government official, who represents state at the mine ministry's committee in this regard, said the state government has already given its consent and initiated steps for the DMFT's formation.

“States including Maharashtra are unanimous in their views that villagers should be provided with better infrastructure and the money be ploughed back for the same.”

According to the ministry’s draft, the contribution towards DMFT's fund will be collected from the holders of  mining lease or a prospecting licence-cum-mining lease under the provisions of sub-section (5) of section 9B of the Act; mining lease under the provisions of sub-section (6) of section 9B of the Act and minor mineral concession under the provisions of section 15A of the Act.

The contribution by the miner to the fund would be a percentage of the royalty paid on the mineral. However, it will not exceed one-third (33 per cent) of the royalty.

The fund will be strictly used for infrastructure development, organising or conducting training programmes for skill development and capacity building for creating employment and self-employment capabilities.

Further, the ministry in the draft has made it clear that DMFT may spend a sum not exceeding 6% of its total funds for meeting its administrative or establishment expenses.

Further, the state governments will provide services of the personnel under their control including employees working in the District Panchayat for management of the DMFT and for execution of the Annual Plan.