Non-utilisation fund by government hits mining workers’ welfare

JAIPUR: Even after new legislative measures were put in place and about Rs 600 crore were mobilised for District Mineral Fund Trusts, majority of the corpus lies unutilized defeating the very purpose of the new MMDR Act 2016 that sought to address the problems of the people and areas affected by mining operations.

In a PIL filed in Rajasthan High Court, Jodhpur, petitioner Shiv Kumar Pandey has also alleged that whatever little money has been spent so far, most of it has been diverted to activities that do not come under the provisions enshrined in the District Mineral Foundation Trust, 2016 of Mines and Mineral (Development and Regulation) Act.

“The factum that improper utilization of the funds by the respective District Mineral Fund Trust (s) and a complete disregard shown towards the District Mineral Fund Trust Rules, 2016 and the functioning of the said District Mineral Fund Trust (s) is totally contrary to the objective of the trust as stated in Rule 4 of the said rules,” the petitioner mentions in the PIL making Union mines secretary, Rajasthan government, state director of mines and geology and trusts as respondents.

As per the information collected through RTIs, the District Mineral Fund Trusts in Bhilwara, Rajasamand, Udaipur and Jodhpur have received about Rs 400 crore by September 2017 while only Rs 110 crore of the corpus has been spent. Sources said If one adds funds from districts like Ajmer and Barmer, the amount can go up to Rs 600 crore.

Rana Sengupta, managing trustee of mine, labour, protection campaign (MLPC), said that like in the construction industry, there is a need for a mine workers welfare board. “Fifty per cent of the total fund should be dedicated to this board for the welfare of the over 25 lakh miners working in over 33,000 mines in the state. And the rest 50% should be spent areas mentioned in the Act.”

Mining companies are contributing about 30% of the royalty to the fund besides spending for other CSR activities. The objective of the fund is to mitigate the adverse effects of mining on people and areas. Mining-related operations such as excavation, blasting, and beneficiation affect the natural environment of the area, be it soil, vegetation, air, etc. Similarly, it also affects the health of the people directly who are engaged in mining operations.