Mining companies Welfare Schemes introduced in India

16 Dec 2021 CW Team

Annexure-I lists the welfare schemes in mining areas by state and the funds allocated.

To ensure that the District Mineral Foundation Trust Fund, which is for the welfare of people and areas affected by mining-related activities, is not misused, the government has taken the following steps:

A two-tier administrative structure for DMF, consisting of a Governing Council and a Managing Committee, has been proposed in the Model Trust Deed circulated by the Central Government to ensure effective implementation of the PMKKKY scheme in transforming people's living standards or social upliftment and development of areas affected by mining-related operations. As a result, the majority of states have included a two-tier DMF administrative structure in their State DMF Rules.

According to PMKKKY guidelines, the DMF's accounts must be audited every year by a Chartered Accountant appointed by the DMF, or in any other manner specified by the Government, and the report must be made public. In addition, the Annual Report must be submitted to the government within one month of the DMF's approval, and it must be available on the Foundation's website. Each Foundation's Annual Report must be presented to the State Legislative Assembly.

The central government issued instructions regarding the use of funds by District Mineral Foundations in an order dated 12 July 2021, prohibiting District Mineral Foundations from transferring funds to the State exchequer, State level fund, Chief Minister's Relief Fund, or any other funds or schemes. Furthermore, no expenditure from the District Mineral Foundation's fund shall be sanctioned or approved at the State level by the State Government or any State level agency.

Pralhad Joshi, Minister of Coal, Mines and Parliamentary Affairs, provided this information in a written reply to the Rajya Sabha today.

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Also read: Amendment in Mining Act: A step towards building self-reliant India

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Annexure-I lists the welfare schemes in mining areas by state and the funds allocated. To ensure that the District Mineral Foundation Trust Fund, which is for the welfare of people and areas affected by mining-related activities, is not misused, the government has taken the following steps: A two-tier administrative structure for DMF, consisting of a Governing Council and a Managing Committee, has been proposed in the Model Trust Deed circulated by the Central Government to ensure effective implementation of the PMKKKY scheme in transforming people's living standards or social upliftment and development of areas affected by mining-related operations. As a result, the majority of states have included a two-tier DMF administrative structure in their State DMF Rules. According to PMKKKY guidelines, the DMF's accounts must be audited every year by a Chartered Accountant appointed by the DMF, or in any other manner specified by the Government, and the report must be made public. In addition, the Annual Report must be submitted to the government within one month of the DMF's approval, and it must be available on the Foundation's website. Each Foundation's Annual Report must be presented to the State Legislative Assembly. The central government issued instructions regarding the use of funds by District Mineral Foundations in an order dated 12 July 2021, prohibiting District Mineral Foundations from transferring funds to the State exchequer, State level fund, Chief Minister's Relief Fund, or any other funds or schemes. Furthermore, no expenditure from the District Mineral Foundation's fund shall be sanctioned or approved at the State level by the State Government or any State level agency. Pralhad Joshi, Minister of Coal, Mines and Parliamentary Affairs, provided this information in a written reply to the Rajya Sabha today. Image Source Also read: Amendment in Mining Act: A step towards building self-reliant India

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