The country’s mining areas, mostly inhabited by the tribals, would get nearly Rs 6,000-crore facelift each year, thanks to the miners’ contribution towards district mineral foundation (DMF), the mines ministry has estimated. The estimate is based on the current levels of royalty collection by the states concerned.
As per a recent notification, the existing miners will have to pay 30% of the royalty as contribution towards the DMFs, which is meant to support project-affected people, while those who would get mines through the auction route now would have to pay just 10% of royalty.
Using the funds generated by such contribution, DMFs are expected to implement the recently-launched Pradhan Mantri Khanij Khetra Kalyan Yonaja (PMKKKY). At least 60% of the funds under the PMKKKY have to be used for high priority areas such as drinking water supply, environment preservation and pollution control measures, primary or secondary healthcare, education, welfare of women and children, aged and disabled people among others.
The remaining 40% could be spent for infrastructure projects such as physical infrastructure, irrigation, energy and watershed development and any other measures that would enhance environmental quality in mining districts.