ODISHA District Mineral Fondation The right of people to benefit from the mineral-rich lands they live on 1
It is ironic that India s mineralrich districts are also those where Poverty amidst plenty some of the contry s poorest live. This deep economic and social ineqality also afflicts Odisha, a key mining state of the contry. According to latest poverty estimates of the Government of India, more than 36 per cent of the people in rral areas of Odisha fall below the poverty line, mch higher than the national average of abot 26 per cent. Frther, 27 districts in the state have been identified as backward by the Planning Commission. The sitation is far worse for tribal poplation in these areas; more then 75 per cent of them fall below the poverty line. For India s democracy, this ineqality has remained a dark aspect. In 2008, Centre for Science and Environment pblished a citizen s report, Rich Lands Poor People: Is Sstainable Mining Possible?, asking for a new social and environmental contract to address the ineqality that brdens mining affected areas. A decade of discssion and negotiations has gone into addressing this throgh varios platforms. In 2015, finally, India s Central mining law, the Mines and Minerals (Development and Reglation) Act (MMDR) of 1957 was amended and District Mineral Fondation (DMF) was institted. With DMF, for the first time, the right of people to benefit from natral resorces has been recognized. This is a defining opportnity to rewrite the contract between rich lands and its poor people.
District Mineral Fondation What? For whom? How? What is District Mineral Fondation? District Mineral Fondation (DMF) is a non-profit stattory Trst for every district affected by mining-related operations to protect the interest of commnities and benefit the people in those areas. Why was it established? For years, mining has benefitted mining companies, individal miners and governments, not the commnities living there. Becase of mining, people are displaced from their land and sffer other negative conseqences like break-p of the society and polltion, bt are never adeqately compensated. This is the reason for the poor socio-economic and environmental stats of most mining affected districts. DMF is a vehicle for people to benefit from mining, which they have been denied for decades. It is strictly targeted to serve the commnities/people in mining-affected areas. Under which law is this recognized? What does the law say? DMF is recognized nder India s central mining law, the Mines and Minerals (Development and Reglation) Act (MMDR) of 1957, as amended in 2015. Section 9B of the MMDR Act gives specifications abot DMFs The objective of DMFs have been clearly spelt ot in the Section 9B (2) of the MMDR Act (amended in 2015) as to work for the interest and benefit of persons, and areas affected by mining-related operations. The specific law concerning DMF in the state is the Odisha District Mineral Fondations Rles, 2015. The objective and fnctioning of DMF are also gided by constittional provisions as it relates to Fifth and Sixth Schedles for governing tribal areas, the provisions of the Panchayats (Extension to Schedled Areas) Act (PESA), 1996, and the Schedled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 the Forest Rights Act (FRA). Who is entitled to benefit? Commnities/people in areas affected by mining; People having legal and occpational rights over the land being mined; People having sfrct (ser rights) and traditional rights. 3
Who can be called an affected person? Affected families will be the ones as given nder Section 3(c) of Land Acqisition, Rehabilitation and Resettlement Act, 2013. These inclde: Families whose land or other immovable property has been acqired for mining activity; Families that do not own any land bt a member/members may be: a. Tenants (inclding any form of tenancy), or holding sfrct rights over the land, b. Agricltre laborers, c. Share-croppers or artisans working in the affected area for three years prior to the acqisition of the land, whose primary sorce of livelihood has been affected by land acqisition. Schedled Tribes, other traditional forest dwellers who have lost any of their forest rights as recognized nder the Forest Rights Act, 2006 becase of land acqisition; Family whose primary sorce of livelihood for three years has been dependent on forest or water bodies prior to land acqisition; A family member whom the Central or state government has assigned land nder any of its schemes and sch land is nder acqisition. As far as possible, affected families shold be identified by conslting the local/elected representatives of the gram sabha. Displaced families as given nder Section 3(k) of the Land Acqisition, Rehabilitation and Resettlement Act, which inclde any family displaced, relocated or resettled from the affected area to a resettlement area becase of land acqisition for mining activity. People who have legal and occpational rights, and also sfrct and traditional rights over the land being mined. Any other as appropriately identified by the gram sabha. How do I determine if my area will be considered miningaffected? An area can be directly or indirectly affected by mining. Directly affected areas inclde: Areas with direct mining-related operations, sch as excavation, mining, blasting, beneficiation and waste disposal (overbrdened dmps, tailing ponds, transport corridors etc.) Villages and gram panchayats within which mines are sitated and are operating (this may extend to neighboring village, block, district or even the state); Areas that fall within a radis of 10 kilometers from a mine or clster of mines (the radis remains irrespective of whether it falls within the concerned district or the adjacent district); 4
Villages in which families displaced by mines have resettled/been rehabilitated by project athorities; Villages significantly dependent on mining areas to meet their economic needs and have sfrct (ser rights) and traditional rights over the project areas. For e.g. where grazing lands or lands from which forest prodce is collected are affected by mining. Indirectly affected areas inclde: Areas where the local poplation is adversely affected by economic, social and environmental conseqences of mining-related operations. Some major characteristics of these areas inclde deterioration of water, soil and air qality, redction in stream flows and depletion of grondwater, congestion and polltion de to mining operations, transportation of minerals and increased brden on existing infrastrctre and resorces. The Trst will identify affected areas and people. The gram sabha mst be conslted to identify affected people/families in Schedle Areas. Who will rn the DMF? The DMF will have a Board of Trstees and an Exective Committee. Both will be headed by the District Collector. Besides officials, Board of Trstees, has also some representation of elected representatives from mining areas sch as members of Lok Sabha, members of state legislative assembly, member of zila parishad, members of panchayati raj instittions or rban local bodies. The Exective Committee has mainly government officials. Some key roles of the Board of Trstees will be: Approve annal bdget and plan; Approve master plan or perspective plan; Decide which priority areas money shold be spent on and decide sectoral allocation; Sanction individal projects exceeding Rs. 10 crore; Appoint aditors and approve annal reports of the Trst. The Board has to meet at least twice dring one financial year. Some key roles of the Exective Committee will be: Oversee day-to-day fnctioning of DMF, inclding administration of fnds; Prepare DMF bdget, which is sbject to Board s approval; Give the work contract and payment to concerned athorities/ people; Sanction individal projects not exceeding Rs. 10 crore; Spervise work progress, maintain acconts etc. Exective committee will meet atleast once every qarter. 5
Instittional strctre of DMF Board of Trstees Official representatives District collector District pblic works officer Additional district magistrate District steel and mines officer District forest and environment officer District rral development officer District ST and SC development officer District health and family welfare officer Any other officer of the district departments as the government specifies Exective Committee District collector District rral development officer District forest and environment officer District steel and mines officer District pblic works officer Project director of distric rral development agency Political and commnity representatives Each member of A member of the Lok Sabha in whose Zila Parishad from constitency any the area in which major mineral any major mineral concession is located concession is located Each member of Odisha Legislative Assembly in whose constitency any major mineral concession is located Maximm three Members of panchayati raj instittions or rban local body in which any major mineral concession is located 6
How mch money will come to the DMF? Miners/mining companies operating in the district will pay to the DMF Trst of that district as per the rates below. Payment to be made for major minerals (e.g. coal, iron ore and baxite): 10 per cent of royalty paid to the state government for leases granted on or after 12 Janary 2015; 30 per cent of royalty for leases before that. Payment to be made for minor minerals (e.g. stone, sand): 30 per cent of royalty if the lease has not been granted throgh action; 10 per cent of royalty if the lease has been granted throgh action. The money coming to DMF mst be spent on development works and activities that will address the basic needs of people in mining affected areas and benefit them directly. How and for what shold DMF money be sed? This is the most crcial qestion. To channelize the fnds properly, the Central government in September 2015 lanched the Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY), a welfare scheme for mining-affected areas and people. It gave clear gidelines regarding where DMF money se is to be prioritized. Broadly, THREE key things shold be checked to ascertain the effective se of DMF money as specified by PMKKKY. DMF money shold be sed to: implement varios developmental and welfare projects/programmes in mining-affected areas, and these will complement existing ongoing schemes/ projects of the state and Central government; minimize/mitigate the adverse impacts dring and after mining on the environment, health and socio-economic stats of people; ensre long-term sstainable livelihoods for mining-affected people. How will planning happen for se of DMF money? The Trst will make an annal plan which will be operational for one year; Members of the DMF will prepare the annal plan taking into accont the inpts/plans as received from respective gram sabhas. The final plan will detail ot the type and qantm of development schemes/ works to be implemented within a definite timeframe; To execte the plan, the Trst will allocate money to the concerned athorities. 7
So what works mst DMF do? Welfare programmes and activities can vary between mining districts. Bt there are High Priority Areas specified by law, where at least 60 per cent of the money mst be sed. They inclde: Facilities for drinking-water spply, sch as centralized prification systems, water treatment plants and permanent/temporary water distribtion networks, inclding standalone facilities for drinking water, piped-water spply etc. Proper infrastrctre for sanitation, sch as ensring collection, transportation and disposal of waste, cleaning of pblic places, provision of proper drainage and sewage treatment (sewage treatment plants), disposal of faecal sldge, provision of toilets etc; Creation of primary and secondary healthcare facilities in affected areas and maintaining necessary infrastrctre. Also, institting a grop insrance health scheme for mining-affected people. Edcational instittes and vocational training centres and spporting infrastrctres. Welfare of women and children throgh special efforts for addressing problems of maternal and child health, malntrition etc. Welfare of aged and disabled people. Skill development for livelihood spport, income generation and other economic opportnities. This can involve training programmes, developing skill-development centre, providing self-employment schemes, spporting self-help grops and entreprenership etc. Provide hosing for people withot pacca hoses, throgh grop hosing schemes, old age home etc. Environmental polltion control and mitigation measres. 8
People mst be vigilant to ensre that they get the right benefits. Commnities MUST be wary of the se of money in schemes/projects/ activities that have other dedicated fnds or remain specific responsibilities of mining companies. For example, DMF money shold not be sed for: Environmental polltion control from mining activities: It is the responsibility of the mining company/individal to spend on polltion control (according to the environmental clearance(s), environmental management plan(s) and mining plan conditions). Once this is done a fraction of DMF money can spplement this. Afforestation: As there are fnds available to the state nder forestry fnd/schemes sch as Compensatory Afforestation Fnd Management and Planning Athority (CAMPA), Green India Mission etc. Major sanitation infrastrctre: As it is also nder the Swachh Bharat Mission and other rban and rral development programmes. DMF money shold spplement these initiatives and not be the primary sorce of money for these activities. Big infrastrctre projects sch as road bilding, railways and bridges: State governments have money earmarked for these. The law also specifies that no more than 40 per cent of DMF money shold be spent on making roads, bridges, railways, waterways projects, irrigation and alternative energy sorces. DMF money shold be complementary to state fnds available for infrastrctre projects. No more that 5 per cent of DMF fnds shold be sed for administrative prposes. The law specifies this. 9
Does the commnity have the power to decide where the money shold be sed? YES, the law does empower the commnity, especially in the Schedled Areas, to give their opinion. Power has been vested throgh gram sabhas. For villages affected by mining within the Schedled Areas, gram sabhas have the following power: Identify beneficiaries Approval of gram sabha is reqired to identify beneficiaries in affected villages. Decide plans and programmes to be carried ot in affected areas Approval of the gram sabha is reqired for all plans/programmes/projects to be taken p with DMF money. Monitor developmental schemes/works Report on the works ndertaken by the DMF Trst in respective villages shold also be frnished to the gram sabha after completion of every financial year. How can I access information on the DMF of my district? ALL information mst be in pblic domain. Each Fondation mst prepare and maintain a website where all information shold be disclosed. This incldes: Detailed composition of the DMF the Governing Concil and Management Committee; Qarterly details of all contribtions received from lessees and others; A list of areas and people affected by mining; All meeting agenda, mintes of meetings and action-taken reports; Annal plans and bdget; Work orders and progress reports of all the projects/programmes being ndertaken, description of work, estimated cost, expenditre, name of implementing agencies, expected date of commencement and completion of work etc.; List of prospective beneficiaries and those who have benefitted from sch measres; Annal report, inclding acconts and adit records; Other related information. 10
How do I register a complaint if I or the people of my area are not receiving the stiplated benefits? There are enogh platform throgh which complaints or grievance can be registered: Gram sabha: In Schedled Areas a person or commnity can bring a complaint to the attention of the concerned gram sabhas, as the grams sabhas have a say in the identification of beneficiaries in affected villages and recommending plans/programmes/projects to be taken p by DMF money. Exective Committee: The committee is in charge of the day-to-day fnctioning and spervision of the DMF and can be approached to pt forth a grievance or complaint. Board of Trstees: It is the overlooking body with political as well as commnity representation. Cort of law: A case can be filed in the cort against any irreglarities or complaints regarding the fnctioning or works ndertaken by the DMF Trst. 11
For more information contact: SRESTHA BANERJEE Phone: 09958550622 Email: srestha@cseindia.org Website: http://cseindia.org/content/districtmineral-fondation 12 Centre for Science and Environment 41, Tghlakabad Instittional Area, New Delhi 110 062, India Ph: +91-11-40616000 Fax: +91-11-29955879 E-mail: cse@cseindia.org Website: www.cseindia.org