State govts asked to utilise DMF for big projects

Mines secy has said hospitals, schools and roads can be constructed with District Mineral Foundation fund

MINING-AFFECTED REGIONS

Jamshedpur: The Union ministry of mines has asked state governments to come out with big projects to utilise district mineral foundation (DMF) funds to help the affected and for rebuilding infrastructure in mining affected areas.

"There is a good amount of fund under DMF and we have asked state governments to come out with big projects for infrastructure development in the affected mining districts," secretary to the ministry of mines Balvinder Kumar said.

Kumar, who visited Noamundi iron mine of Tata Steel in Jharkhand’s West Singhbhum district for a pilot launch of drone application in mine monitoring, told media on Monday that big hospitals, private and government schools and roads can be constructed with the DMF fund aimed to benefit persons affected by mining activities.

Each mining district is likely to get Rs 200 crore to Rs 400 crore in a year’s time for the purpose, he said adding Keonjhar district of Odisha would get more than Rs 600 crore.

A CAG audit will be mandatory and expenditure details of the fund will also be evaluated, he said.

On diversion of funds by some state governments to carry out development projects in other districts, Kumar said rules have been framed and details of expenditure from the fund will be uploaded on web portals.

Asked about the action that would be taken against those who have already manipulated and diverted the fund, Kumar said the problem will arise only in the absence of the system.

However, a system has been developed and every detail will be on website, which would help end all such issues, he said adding Indian Bureau of Mines would develop a system in the next couple of months to grant mining plan approval.

People can upload all related documents online to get mining plan approval as well as other clearances in a year’s time, he said adding all mining activities including sanction of mining plan, production, dispatch, import and export and collection of VAT will be maintained online.

Asked about the government’s action plan for iron-ore mines whose mining lease will expire in 2020, Kumar said the government was working to ensure that they are auctioned in time so that mining activities could start soon after the expiry of lease renewal.

These mining areas will be auctioned by respective state governments so that start mining activities begin immediately after the expiry of mining lease, Kumar said.

Kumar said the government had auctioned mining areas including three each in Odisha and Jharkhand and collected Rs 94,000 crore. PTI