Standing Committee Report Summary

Implementation of District Mineral Foundation and

Pradhan Mantri Khanij Kshetra Kalyan Yojana
 The Standing Committee on Coal and Steel (Chair:  Composition of DMF: The Committee noted that
Prof. Chintamani Malviya) submitted its report on composition of DMFs specified by state governments
‘Implementation of District Mineral Foundation is dominated by bureaucrats in most states, without
(DMF) and Pradhan Mantri Khanij Kshetra Kalyan much representation of public representatives. The
Yojana (PMKKKY)’ on December 27, 2018. Committee recommended that the local Member(s) of
Parliament must be appointed as the Chairman of the
 The Mines and Minerals (Development and
Governing Council of the respective DMF, for which
Regulation) Act, 1957 was amended in 2015 to
the Ministry may urgently notify revised guidelines.
enable the state governments to set up DMFs. The
DMFs seek to work for the benefit of persons in  Social audit: The Committee noted that feedback
districts affected by mining related operations. Under from the people living in the mining affected areas is
the Act, mining lease holders are required to make important in determining the adequacy and efficiency
contribution to DMF funds. This contribution is of DMFs in those areas. This will provide these
equivalent to a certain percentage of the royalty paid people an opportunity to scrutinise the developmental
by them. PMKKKY was launched in 2015 to initiatives being implemented for them. It will also
implement the projects approved by DMFs in make them aware of their rights and entitlements
coordination with the ongoing schemes of the central under the DMF. The Committee recommended that
government and state governments. the Ministry may prescribe for social audits of DMFs,
which would be conducted by the people living in
Key observations and recommendations of the
mining affected areas.
Committee include:
 Accountability: The Committee noted that there is a
 Allocation of funds: The Committee observed that
lack of transparency and public accountability in the
under PMKKKY, 60% of the DMF funds are required
functioning of DMFs and their projects. It
to be utilised for projects in high priority sectors, such
recommended that all relevant information (such as
as health, education, drinking water, sanitation and
composition of DMF, funds collected, list of directly
environment, among others. It noted that this is
affected areas, and list of beneficiaries) should be
resulting in spending getting prioritised over certain
publicly available. The Committee observed that the
sectors and on people and areas who may not be
Ministry has developed national and district level
directly affected by mining activities. The
portals with information on DMFs. It recommended
Committee recommended that the requirement to use
that till such information is made available on portals,
60% funds in high priority sectors should be done
necessary steps may be taken for the dissemination of
away with. Instead, 60% of the funds must be spent
such information. This could be done by displaying
on the people living in areas directly affected by
the information at district and panchayat level offices,
mining related operations.
through public meetings, and awareness programmes.
 Implementation: The Committee observed that till
 Review mechanism: The Committee observed that
August 2018, Rs 21,235 crore has been collected
the Ministry has not taken any specific initiatives for
under DMFs. Of this, projects worth Rs 15,548 crore
achievement of the objectives of PMKKKY. It also
have been sanctioned. It also observed that out of the
observed that the meeting recently conducted with
81,624 projects sanctioned, only 22,026 projects
state governments for deliberation on implementation
worth Rs 4,888 crore have been completed, reflecting
of PMKKKY was held only after suggestions of the
non-initiation of projects and slow spending pattern.
Committee. It recommended that the Ministry should
The Committee recommended that the Ministry of
play a proactive role and make efforts to ensure
Mines should put a monitoring mechanism in place
proper implementation of projects by states. Further,
for timely allocation and utilisation of funds. Further,
the Ministry should hold review meetings at regular
provisions must be made for fixing accountability in
intervals, and regular follow up meetings every three
case of unnecessary delays in implementation.
months with state governments.
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Suyash Tiwari January 2, 2019

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