Correcting perception: Over two-thirds of miners money in govt’s district mineral foundation remains unutilised

Published: November 1, 2019 12:40 AM

The fact remains that till August 2019, of the 1,33,214 projects sanctioned under DMF, 23,804 projects are yet to start.

labour sector, labour industryAs per the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), 60% funds are to be utilised for high-priority sectors.

By RK Sharma

To directly meet the needs of community residing near mining operations, the Centre in 2015, by inserting Section 9B in MMDR Act 1957, established District Mineral Foundation (DMF). Government mapped 583 districts in 21 mineral rich states and so far 557 districts have already set-up DMF.

Till August 2019, government has accumulated Rs 31,830 crore under DMF and Rs 26,685 crore has been allocated for different welfare projects. But the fact remains that about 70% of the funds accumulated remain unutilised. Only about Rs 9,555 crore has been spent so far to complete 45,523 projects.

As per the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), 60% funds are to be utilised for high-priority sectors.

The fact remains that till August 2019, of the 1,33,214 projects sanctioned under DMF, 23,804 projects are yet to start. 57,349 projects are in various stages of completion and 6,538 projects have been scrapped.
Mining companies in each of the States of Odisha, Jharkhand, Chhattisgarh, Rajasthan, Telangana and Madhya Pradesh have contributed over Rs 2,000 crore in DMF till August 2019.

Odisha has been the highest contributor in DMF, about Rs 8,253 crore. But, out of 12,664 projects sanctioned, only 5,438 projects have been competed, 4,130 are on-going, and 3,096 are yet to start. But Odisha has not scrapped a single project.

Similarly, Jharkhand, the second highest contributor in DMF, with about Rs 4,585 crore, has 16,519 projects sanctioned and all the projects are in pipeline, but not a single project has been completed.

Chhattisgarh has been the third largest contributor with about Rs 4,435 crore contribution in DMF. Out of the 31,657 projects sanctioned, the highest in the country, Chhattisgarh has completed 20,025 projects, 10,184 are on-going and 1,448 projects have been scrapped.

The fourth largest contributor in DMF is Rajasthan with Rs 3,092 crore. 16,640 projects have been sanctioned, 6,418 projects are yet to start, 3,088 have been completed and 4,708 projects are on-going. Rajasthan has scrapped 2,426 projects.

Telangana has about Rs 2,632 crore. Out of 15,201 projects sanctioned, 3,464 have been completed, 4,987 are yet to start and 6,741 are on-going. Only 9 have been scrapped.

Madhya Pradesh has Rs 2,556 crore. It has 51 districts (largest). Out of 8,453 projects sanctioned, 3,431 have been completed, 2,679 are ongoing, 2,061 are yet to start and 282 projects have been scrapped.

Communities believe that mining companies are not doing enough. Slow progress in implementing social projects under DMF is denting companies’ perception. Government should, thus, form a body of Indian mining companies to make a concrete action plan, along with the state governments, to spend DMF funds gainfully. FIMI being an apex body of miners would be happy to take lead in this government initiative.

The writer is Secretary General, FIMI

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