FIMI raises concerns over slow utilisation of funds for mining-affected people

Apex mineral body FIMI on Monday expressed concerns over slow utilization of funds collected from different districts under the government scheme for mining-affected people and stressed upon the creation of a miners' panel to advise the government to "gainfully utilize" the amount. "Accumulation of funds being collected by the government under District Mineral Foundation (DMF) has touched Rs 33,273 crore by October 2019, but the spending has been just about 30 per cent... Rural and tribal community do not understand the District Mineral Foundation and the contribution of mining companies in DMF unless the existing accumulation is gainfully utilized.

"A miners committee should be formed to advise the government in this regard and FIMI is ready to take lead in this," the Federation of Indian Mineral Industries (FIMI) said. Till October, the government has been able to utilize only Rs 10,537 crore, it said. This amount is also spread across 21 states and union territories and in 557 districts.

"Government has no action plan to gainfully utilize this mammoth accumulation of DMF funds which is only increasing every month," FIMI said. It further added that only 43 percent of projects have been completed, 34 percent are on-going, 17 percent yet to start and six percent projects have been canceled. When the license to operate is a necessity for miners, the 70 percent unspent amount, nearly Rs 22,735 crores is only creating unrest in the community.

Government collects DMF funds under three categories -- coal and lignite mining, major minerals (excluding coal and lignite) and minor minerals. "Slow utilization of DMF funds by the government is widening distance between community and miners. The development of the mineral resource is a serious business and is the backbone of infrastructure development for any country. India is a developing country and to achieve the government's vision of making India a 5 trillion economy, mining sector will play a decisive role," FIMI Secretary General R K Sharma said.

The purpose of DMF was to collect funds from the mining companies and spend directly on the welfare of people living near mining areas.