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Gujarat District Mineral Foundation Rules, 2016

Published vide Notification No. GU-2016-(42)-DMF/102015/836/CHH, dated 1.4.2016

Last Updated 2nd November, 2019 [guj307]

Chapter-I

Preliminary

(a) "Act" means the Mines and Minerals (Development and Regulation)Act,1957 (67 of 1957);

(b) "Affected Area" means the area affected by mining related operations comprising of Directly Affected Area and Indirectly Affected Area, identified in accordance with rule 13;

(c) "Affected People" means people affected by mining related operations, identified in the manner provided in rule 14.

(d) "Beneficiaries" means those Affected people who have been identified, as beneficiaries of plans, programmes or projects, in the manner specified in sub-rule (1) of rule 15;

(e) "Annual Plan" means an annual plan prepared in accordance with rule 17;

(f) "Annual Report" means annual report of the DMF-T prepared in accordance with these rules in the format specified by the State Level Co-ordination Committee;

(g) "Directly Affected Area" means the areas directly affected by mining related operations, identified in accordance with clause (a) of sub-rule (1) of rule 13;

(h) "DMF" means a District Mineral Foundation established by the State Government in districts affected by mining related operations, in accordance with Section 9B of Act;

(i) "Indirectly Affected Area" means the areas indirectly affected by mining related operations, identified in accordance with clause (b) of sub-rule (1) of rule 13;

(j) "Government" means Government of Gujarat;

(k) "Governing Council" means governing council of the DMF constituted in accordance with rule 5;

(l) "Executive Committee" means executive committee of the DMF constituted in accordance with rule 6;

(m) "Village Panchayat" means Village Panchayat constituted under the Gujarat Panchayats Act, 1993;

(n) "Gram Sabha" will have the same meaning as has been assigned to it in clause (b) of Article 243 of the Constitution of India;

(o) "PMKKKY" means the Pradhan Mantri Khanij Kshetra Kalyan Yojana framed vide Order of the Ministry of Mines, Government of India, dated 16th September, 2015 of Government of India;

(p) "rules" means the Gujarat District Mineral Foundation Rules, 2016;

(q) "Scheduled Area" includes tribal areas, and the scheduled area as referred in clause (1) of Article 244 of the Constitution of India, and

(r) "State Level Co-ordination Committee" means a committee established in accordance with rule 9.

Chapter-II

Establishment, Structure and Composition of Distirict Minerl Foundation

(a) to approve the Annual Plan, as specified in rule 17;

(b) to consider and approve the recommendations of the Executive Committee;

(c) to approve of the Annual Report and audited accounts of the District Mineral Foundation within period prescribed under the Societies Registration Act, 1860 or 90 days from the close of the previous year whichever is earlier; and

(d) to appoint and remove auditors.

(a) to prepare the implementation scheme, which may include the policy frame work, master plan, vision document for the activities of the District Mineral Foundation and submit to the State Level Co-ordination Committee for approval.

(b) to prepare administrative procedures for functioning of the District Mineral Foundation and present to the State Level Coordination Committee/Governing Council for approval.

(c) to prepare shelf of projects to be taken up and scheme of prioritisation of project implementation and present to the State Level Co-ordination Committee/Governing Council for approval.

(d) to prepare the Annual Plan, as specified in rule 17.

(e) to Supervise and ensure the execution of the Annual Plan and approved plans, programmes and projects.

(f) to Accord sanctions to implementation of plans, programmes and projects approved under the Annual Plan and disburse funds of the District Mineral Foundation for implementation of such plans, programmes and projects.

(g) to prepare, maintain and update a list of Affected Areas and Affected People.

(h) to deploy and invest the District Mineral Foundation Fund in a diligent manner and as per the policies and instructions of the Government.

(i) to open bank accounts in the name of the District Mineral Foundation and operate such accounts and investments.

(j) to monitor the progress of the utilization of funds by the District Mineral Foundation.

(k) to place the audited accounts along with an Annual Report before the Governing Council for approval.

(l) to appoint staff on contractual basis for the affairs of the District Mineral Foundation in accordance with the policies and the instructions of the Government, in accordance with sub-rule (3) of rule 18.

(a) to apportion funds between more than one District Mineral Foundation when the Affected Area falls in more than one district;

(b) to determine utilization of District Mineral Foundation funds on larger projects in the Affected Areas or projects common to more than one district;

(c) to formulate methodology to be adopted by the District Mineral Foundations for determining the Directly Affected Areas, Indirectly Affected Areas and for identification of Affected People and Beneficiaries;

(d) to formulate policy guidance of maintenance of records in electronic format; and

(e) to specify minimum information required to be provided on the website of each District Mineral Foundation.

Chapter-III

Management of the District Mineral Foundation

*Note. - This provision has been reinstated to provide for flexibility to hold meetings at a shorter notice. In absence of such provision validity of a meeting without notice of 15 calendar days could be questioned.

Chapter-IV

Activities Under the District Mineral Foundation

(a) to implement various developmental and welfare projects and programs in areas affected by mining related operations, which projects and programs shall compliment the existing ongoing schemes or projects of State or Central Government;

(b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and

(c) to ensure long-term sustainable livelihoods for the people in areas affected by mining related operations.

(a) Directly Affected Areas - which shall be the areas where mining related operations (such as excavation, mining, blasting, beneficiation and waste disposal, such as overburdened dumps, tailing ponds, transport corridors, etc.) are located. For the purposes of identification of Directly Affected Areas, the Executive Committee may consider the following, namely:-

(i) an areas under the village Panchayat within which the mines are situated and operational. The Executive Committee may also include neighbouring villages, blocks or district2 within Directly Affected Areas.

(ii) an area within such radius from a mine or cluster of mines as may be specified by the State Level Co-ordination Committee, irrespective of whether such area falls within the district of DMF or adjoining district.

(iii) villages in which families displaced by mining related operations have resettled or rehabilitated by relevant authorities.

(iv) villages that significantly depend on the areas affected by mining related operations for meeting their economic needs and have usufruct and traditional rights over the project areas, such as for grazing, collection of minor forest produce.

(b) Indirectly Affected Areas - which shall be the areas where local population is adversely affected on account of economic, social and environmental consequences due to mining related operations, like such adverse effect could be by way of deterioration of water, soil and air quality, reduction in stream flows and depletion of ground water, congestion and pollution due to mining operations, transportation of minerals or increased burden on existing infrastructure and resources.

*Note. - The PMKKKV refers to neighboring state, but it has not been included herein as these rules are limited to Gujarat.

(a) "Affected Family" as defined under sub-section (c) of Section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013;

(b) "Displaced Family" as defined under sub-section (k) of Section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013;

(c) Persons identified by the Gram Sabha as being affected by mining related operations;

(d) Other persons who are affected by mining related operations, including people who have legal, occupational, traditional or usufruct rights over the Affected Area, as identified by the Executive Committee.

(a) specified individuals - in case of plans, programmes or projects targeted at individuals; or

(b) a class of population - in case of plans, programmes or projects targeted for general welfare of a particular class of populations, such a people residing in a specified area.

*Note. - The PMKKKY refers to affected persons, affected people and beneficiaries, the import of such expressions in the context of implementation to be discussed. Pending such discussion, the provisions are indicative.

(a) end of the financial year-, if more than six months are remaining in such financial year; or

(b) end of the subsequent financial year-, if less than six months are remaining in such financial year. In such case, the first Annual Plan shall be for a period of more than one year.

(a) at least sixty per cent, of the funds must be allocated towards "high priorities areas" as specified in clause (a) of sub-rule (5);

(b) up to forty per cent, of the funds may be allocated towards "other priority areas" as specified in clause (b) of sub-rule 5;

(c) a maximum of five per cent, of the funds may be allocated towards administrative, supervisory and overhead costs of the District Mineral Foundation; and

*Note. - The provisions of PMKKKY have been incorporated in these rules. However, please note that such an approach would require amendment of these rules each time the PMKKKY is modified. To avoid the same, one approach could be to not include provisions of the PMKKKY and only refer to the PMKKKY. The DMF may be guided directly by PMKKKY.

(a) "high priority areas" means :

(i) Centralized purification systems, water treatment plants, permanent/temporary water distribution network including standalone facilities for drinking water, laying of piped water supply system.

(ii) Effluent treatment plants, prevention of pollution of streams, lakes, ponds, ground water, other water sources in the region, measure for controlling air and dust pollution caused by mining operations and dumps, mine drainage system, mine pollution prevention technologies, and measures for working or abandoned mines and other air, water and surface pollution control mechanisms required for environment-friendly and sustainable mine development.

(iii) Creation of primary / secondary health care facilities in the affected areas. Provision of necessary staffing, equipment and supplies required for making such facilities effective. To supplement and work in convergence with the existing health care infrastructure of the local bodies, State and Central government. Consultations with the National Institute of Miners’ Health design special infrastructure needed to take care of mining related illnesses and diseases. Group Insurance Scheme for health care for mining affected persons.

(iv) Construction of school buildings, additional class rooms, laboratories, libraries, art and crafts room, toilet blocks, drinking water provisions residential hostels for students/teachers in remote areas,, sports infrastructure, engagement of teachers/other supporting staff, e-learning setup, other arrangement of transport facilities (bus/van/cycles/ rickshaws, etc.) and nutrition related programs.

(v) Special programs for addressing problems of maternal and child health, malnutrition, infectious diseases, etc.

(vi) Special program for welfare of aged and disabled people.

(vii) Skill development for livelihood support, income generation and economic activities for local eligible persons, including training, development of skill development center, self-employment schemes, support to self-help groups and provision of forward and backward linkages for such self-employment economic activities.

(viii) Collection, transportation and disposal of waste, cleaning of public places, provision of proper drainage and sewage treatment plant, provision for disposal of fecal sludge, provision of toilets and other related activities.

(b) "other priority areas" means :

(i) Providing required physical infrastructure - road, bridges, railways and waterways projects.

(ii) Developing alternate sources of irrigation, adoption of suitable and advanced irrigation techniques, building check dams.

(iii) Development of alternate source of energy (including micro-hydel) and rainwater harvesting system. Development of orchards, integrated farming and economic forestry and restoration of catchments.

(iv) Any other measures for enhancing environmental quality in mining district.

*Note. - To be discussed if specific reference should be made to document akin to General Financial Rules in Gujarat, if any.

Chapter-V

District Mineral Foundation Fund

(a) such investments may be liquidated at any time;

(a) Contributions from the holders of a mining lease, or a prospecting license-cum-mining lease, under the provisions of sub-section (5) of section 9B of the Act;

(b) Contributions from the holders of a mining lease under the provisions of subsection (6) of section 9B of the Act;

(c) Contributions from the holders of minor mineral concession under the provisions of section 15 A of the Act.;

(d) Any interests accrued to the bank accounts of the District Mineral Foundation Fund;

(e) Any other contribution as may be determined by the Government.

Chapter-VI

Records, Registers and Audit

(a) Register of mining related operations in district:- which shall contain particulars of, mining related operations in the district, mines, and persons holding any mineral concessions with respect to an area situated within the district.

(b) Register of receipt:- which shall contain particulars of all payments made to the District Mineral Foundation, including payments made by persons holding mineral concessions.

(c) Register of expenditure:- which shall contain particulars of all expenditure made by the District Mineral Foundation.

(d) Register of beneficiary:- which shall contain particulars of all Affected People of the District Mineral Foundation, as identified in terms of these rules.

(e) Register of Members of Various Committees:- list of members of Governing Council and Executive Committee.

*Note. - Please consider if the format of such registers should be appended to these rules.

Chapter-VII

Miscellaneous

(a) Particulars of composition of the District Mineral Foundation, including particulars of members of the Governing Council and the Executive Committee;

(b) Particulars of Affected Area and Affected People, in case of Affected People, in the interest of privacy the State Level Co-ordination Committee may specify the manner in which the particulars of Affected People may be published.

(c) Quarterly details of all contributions made to the District Mineral Foundation;

(d) Agenda, minutes and action taken reports with respect to meetings of the Executive Committee and the Governing Council;

(e) Annual Plan, Annual Report and audit report.

(f) Implementation status or progress of all the plans, programmes and projects being undertaken by the District Mineral Foundation, including description of work, details of Beneficiaries, estimated cost, name of implementing agencies, expected date of commencement and completion.

(g) Physical and financial progress report of the approved plans, Programmes and projects.