Cement, Energy and Environment

mining companies to contribute 10 per cent-30 per cent of royalty for welfare of tribals and other affected persons in mining areas. The move comes within a month of Prime Minister Narendra Modi's promise of Rs 6,000 crore for development of tribals in mining-affected areas in his Independence Day speech. Each district where mining activity is initiated will have to set up a District Mineral Foundation (DMF) under the district magistrate or district collector. This foundation would identify people affected by mining activities and works that should be undertaken for their welfare. Under the scheme, in case of all mining leases executed before January 12, 2015, miners would have to contribute an amount equal to 30 per cent of the royalty payable to the DMFs. Where mining leases are granted after January 12, 2015, the rate of contribution would be 10 per cent of the royalty. The scheme would be implemented by DMFs. Mines secretary Balvinder Kumar told ET: "Almost all states have set up DMFs. They were waiting for clarity from the Centre on the percentage payable to DMFs. Now the scheme is finalised and after the notification, the states wou ld frame their rules." Guidelines being notified by the Ministry of Mines have specifically laid down the heads under which the funds need to be utilised to ensu re the affected tribals get the benefit of the schemes. At least 60 per cent of the funds under PMKKKY have to be used for high priority areas such as schools, primary health care centres, women and child development, drinking water supply, environment preservation and pollution control measures. Up to 40 per cent funds can be used for infrastructure projects such as physical infrastructure, irrigation, energy and watershed development and any other measures for enhancing environment quality in mining districts. The ministry expects to get Rs 6,000 crore under PMKKKY. Kumar said, "the total royalty for major minerals is Rs 20,000 crore". Courtesy: ET Bureau September 16, 2015, From Internet CENTRE TO HOLD MINES AUCTION ON BEHALF OF STATES In a bid to fast-track mineral extraction, the Centre will conduct auction of mines bearing minerals such as iron ore, bauxite and limestone on behalf of States for the first phase starting November this year. In phase-1 , the 12 mineral-producing states have identified 80-90 blocks that will go under the hammer by November. This was made possible after the Mines and Minerals (Development and Regulation) Amendment Act, 2015, was passed in March this year, which stipulates auction as the only means to allow extraction of iron ore and other minerals. "The Centre in consultation with the states has decided to hand-hold the mineral-bearing states to conduct the mines auction, latest by November this year for 80-90 mines. This will be phase-1. The Centre will auction the blocks on behalf of the States," Mines Secretary Balvinder Kumar told PTI. Of the mineral-bearing states, only Maharashtra, Chhattisgarh and Rajasthan will conduct their own auctions as they have moved ahead with their respective auction processes, he added. "The Centre's three agencies - MECON, MECL and MSTC - will aid the Centre in the auction process. MECON will be the transaction advisor and will conduct location survey, differential GPS study as well as do the documentation," Mr. Kumar said. The government's mineral exploration arm, Mineral Exploration Corporation Ltd. (MECL), will prepare survey reports for the mines to be auctioned, and the metal scrap trading PSU MSTC will ready the auction platform, he added. "The government wants to start the auctions by November and allot the mines in a transparent process on behalf of the States. We will do the hand-holding for the States, this will make possible all auctions at a single platform, making it easier for prospective buyers," Mr. Kumar noted . The Centre can pay the agencies conducting the auction on behalf of the states, which can be paid back later, he explained. "This arrangement is only for phase-1. No decision has been made for phase-11, where states have identified around 96 blocks , which will be taken up once phase I gets over. In many cases, these 96 blocks need to have G1 and G2 level of exploration reports and most of them are in G3 and G4 level," Mr. Kumar added.