The Hindu Editorial Analysis- 16th September 2024 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

A human touch to India’s mineral ecosystem 

Why in News?

In the year 2014, the higher judiciary turned the spotlight on the allotment of coal blocks with the Comptroller and Auditor General of India’s report of 2012 focusing on the allocation of coal blocks between 2004 and 2009. In 2015, the Narendra Modi government amended the Mines and Minerals (Development and Regulation) Act mandating auctions. As a part of the Bill, the government created a new body in the form of a District Mineral Foundation (DMF) where licensees and leaseholders pay the DMF a certain amount of the royalty. This was driven by the Prime Minister’s firm belief that local communities are the key stakeholders in the nation’s natural resource-led development.

Pradhan Mantri Khanij Kshetra Kalyan Yojana

Launched in 2015, this program aims to support the welfare of regions and communities impacted by mining activities.

Usage of Funds

• At least 60%of the funds are allocated for crucial areas such as:
  • Drinking water supply
  • Health care
  • Sanitation
  • Education
  • Women and childcare
  • Support for the elderly and disabled
• Up to 40%of the funds are designated for creating a supportive living environment. This includes spending on:
  • Roads
  • Bridges
  • Railways
  • Waterways projects
  • Irrigation
  • Alternative energy sources
• No more than 5% of the funds can be used for administrative costs.

Coverage

• Affected Areas: All areas that are directly or indirectly impacted by mining-related activities.
• Affected Persons: This includes individuals who have legal rights over the land being mined, as well as those with occupational rights and other traditional rights associated with the mined lands.

Participatory Decision Making

• Decision-Making Authority: The District Mineral Foundations (DMFs) can make significant decisions in consultation with the ‘gram sabhas’(village councils) of the respective villages. This includes identifying beneficiaries for various programs.
• Special Provisions for Scheduled Areas: In the 5th and 6th Scheduled areas of India, it is mandatory to obtain the approval of the Gram Sabha for all plans, programs, and projects under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). This includes the identification of beneficiaries.

Mines and Minerals (Development & Regulation) Act, 2015

The Act modifies the Mines and Minerals (Development and Regulation) Act of 1957.

Introduction of a New Mining License Category: A new type of mining license called the prospecting license-cum-mining lease has been introduced. This license will be issued by state governments for both notified minerals (with the approval of the central government) and other minerals.

Auction Process for Leases: All mining leases will now be granted through competitive bidding, including e-auction.

Establishment of District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET):

• District Mineral Foundation (DMF): A fund aimed at benefiting the areas and people affected by mining-related operations.
• National Mineral Exploration Trust (NMET): A non-profit trust established by the Central Government.

Purpose of NMET: The trust is responsible for regional and detailed exploration of minerals, with a particular focus on strategic and critical minerals.

Contribution Rate to NMET: The rate of contribution to NMET is set at 2% of the royalty paid.