Rules for mining-affected area benefits notified

This is under the PMKKKY (Prime Minister's mining Areas Welfare Scheme), launched on Thursday

Mining companies with leases under the 1957 law in this regard will be paying an additional amount, equivalent to 30 per cent of the royalty, for benefit sharing with locals.

This is under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (Prime Minister's mining Areas Welfare Scheme), launched on Thursday.

Where leases were granted under the 2015 law, which has replaced the one of 1957, the companies would pay an additional 10 per cent of the royalty for this purpose.

With the amended law, state governments must set up a District Mineral Foundation (DMF) in each district, which will use these funds for locals’ benefit sharing. It is estimated that Rs 6,000 crore will be available for DMFs in the first year.

The scheme's aim is to minimise or mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in affected districts, beside ensuring sustainable livelihoods.

The central government has laid down guidelines for implementation and directed states to incorporate these in the rules framed by the latter for DMFs.“High prority areas like drinking water supply, health care, sanitation, education, skill development, women and child care, welfare of aged and disabled people, and environment conservation will get at least 60 per cent of the funds,” went the official statement.

The rest of the money will be spent on roads, bridges, railways, waterways, irrigation and alternative energy sources.