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A majority of Rajasthan’s earmarked funds for mining-affected areas will be used for works like drinking water distribution, environmental protection and health facilities, said a senior civil servant.
The District Mineral Foundation Trust (DMFT) will use 70 per cent of funds in “high-priority areas”, said T Ravikant, principal secretary of mines and petroleum department. The rest of the amount will be used for development works in other places in mining areas.
For DMFT, 30 per cent of royalty amount is collected from old mines of major minerals and 10 per cent each from auctioned major mineral mines and minor mineral mines.
The state government has issued a notification on new DMFT rules that will enable better use of funds for mining-affected areas, said Ravikant. Public welfare works will be done within a 25 km radius of a mining-affected area, according to the new rules.
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Chief Minister Bhajan Lal Sharma, who holds the mining portfolio, aims to develop mining by simplifying approvals for investments. “The Chief Minister believes that the amount collected in the DMFT fund from a mining area should be used in the overall development of the residents of the same area,” Ravikant said.
Ravikant said that the new rules state 70 per cent of DMFT funds in high priority areas can be used for drinking water distribution and purification, environmental protection, health facilities, education, child development, skill development of youth and other purposes.
As much as 30 per cent of the amount can be used for other priority works, especially infrastructural development, including road, bridge, rail projects and irrigation projects, energy and watershed-related works.
Ravikant said that in districts where Rs 50 crore or more amount is collected in mining royalties, project management units will be formed for management, technical assistance and planning. As much as 10 per cent of the amount received in the fund will be kept as an endowment fund.
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