The Central Government has notified the contributions miners would be required to make to the District Mineral Foundations, on Thursday. Existing mining lease holders would be required to pay 30 per cent of the applicable royalty to the DMFs while those who win the mining leases in the auctions will be required to pay 10 per cent of the applicable royalty.
Till now, mineral auctions have not started as state governments were also waiting on the guidelines from the Central Government on the same. The rules to be framed by the state governments will incorporate the change.
The Mines and Minerals (Development and Regulation) Amendment Act, 2015, which enforced the auction route for issuance of mining leases, had also mandated the setting up of DMFs in all districts in the country affected by mining activities.
Specifically, the distinction between existing mining lease holders and future mining lease holders has been made using the date January 12, 2015, the date on which the Act came into force.
The scheme has been dubbed the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and has been launched on the Prime Minister Narendra Modi's birthday.
The objective of the PMKKKY scheme will be to implement various developmental and welfare projects in mining affected areas that compliment existing schemes of the Central and State Government, minimize adverse impact of mining on environment, health and socio-economics of the people in the districts and ensure long term sustainable livelihood for affected people, the Mines Ministry said in a statement.
High priority areas like drinking water supply, healthcare, sanitation, education, skill development, women and child care, welfare of aged and disabled people and environment conservation will get 60 per cent of the share of the funds.
Balance funds will be used for making roads, bridges, railways, waterways projects, irrigation and alternative energy sources, the statement added.
"This way, Government is facilitating mainstreaming of people from lower strata of society, tribals and forest-dwellers who have no wherewithal and are affected the most from mining activities," the Mines Ministry said.