In Karnataka, around ₹15,000 crore collected under the District Mineral Fund (DMF) as royalty and cess for taking up reclamation and rehabilitation (R&R) in the mining districts is yet to be deployed.

The money was collected from 2011. The state government levies royalty of 30 per cent on iron ore mined and another 10 per cent on the sale price as cess.

Apex court directive

The Supreme Court, as part of reviving mining activity in the state, had directed the setting up of the DMF to take up R&R activities in Bellary, Chitradurga and Tumakuru, the three perennially rain-deficit districts. So far, the DMF has not been put to use because of the failure to identify viable projects that would get the Supreme Court clearance.

Karnataka had submitted a few proposals, but the apex court asked the state government to rework on them and submit realistic and viable projects.

Now the government is working out long-gestation projects that are sustainable and can be implemented in two-three years’ time.

The DMF rules as notified by the Karnataka government in 2016 has clearly spelt out that at least 60 per cent of the funds are to be spent on social welfare projects, including drinking water supply, healthcare, and sanitation. “We are now exploring long-gestation projects such as laying railway line, conveyor belt, and rainwater harvesting to fill tanks and lakes,” said a senior officer in the Department of Mines and Geology.

Industry proposals

The industry, on the other hand, has also suggested some projects in the three districts.

“The industry body Federation of Indian Mineral Industries (FIMI) has come forward to assist the state in identifying and evaluating projects beneficial to the districts where mining activities are carried out,” said Basant Poddar, Chairman of Mineral Enterprises Ltd.

Now, it is left to the government to finalise the projects which are viable and get them approved by the Supreme Court.

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