STOCK MARKET BSE NSE

Draft Rules Framed For DMF Trust in Mine-bearing Districts

The Trust will play a significant role for the economic development of the people in areas affected by mining-related operations.

Published: 22nd July 2015 06:50 AM  |   Last Updated: 22nd July 2015 06:50 AM   |  A+A-

BHUBANESWAR:  The Steel and Mines department is reported to have prepared  draft rules for establishment of District Mineral Foundation (DMF) Trust in each of the mineral-bearing districts of the State.

Even as the State Government has not notified the districts where the proposed DMF Trust will be set up, sources said that the draft rules have been sent to the Law department for vetting.

The mining lease holders who will contribute to the DMF, a non-profit body, are not sure whether they will be consulted by the Government before finalising the structure and composition of the proposed Trust.

“Since the proposed Trust will play a significant role for the economic development of the people in areas affected by mining-related operations, the State Government should go for wider consultation among stakeholders before finailsing the DMF structure and its bye-laws,” sources in the mining sector said.

Although the DMF payout structure has not been spelt out, mining companies will make a hefty contribution as per the MMDR Amendment Act, 2015.

While the contribution to the DMF is proposed to be an amount not exceeding the royalty paid by the existing miners, an increase in royalty rates in September 2014 has made things more difficult. The existing miners are supposed to pay an amount equal to the royalty to the fund while new mines need to pay one-third of the royalty.

Apart from the contribution to the DMF, miners will also be required to pay 2 per cent of the royalty amount on minerals to the National Exploration Trust and 2 per cent of their net profit for corporate social responsibility spends.

As the Act empowers the State Government to prescribe the manner in which DMF will work for the interest and benefit of the affected persons, industries sources said that the proposed Trust should not function like Compensatory Afforestation Fund Management and Planning Authority (CAMPA) fund or Odisha Mineral Bearing Area Development Corporation (OMBADC) Fund.

Mining industry officials also expressed doubts whether the mineral-bearing districts will be capable of handling the level of funds to be generated from mining operations when they failed to utilise the annual plan expenditure.

Social Benefit

Draft rules for DMF Trust sent to the Law department for vetting, say sources

Mining companies will make a hefty contribution as per the MMDR Amendment Act, 2015

Miners will also be required to pay 2 per cent of the royalty amount on minerals to the National Exploration Trust and 2 per cent of their net profit for corporate social responsibility spends

Stay up to date on all the latest Odisha news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp