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District Mineral Foundation Trust, Parvathipuram Manyam

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About DMFT

District Minera Foundation Trust (DMF) is a trust set up as a non-profit body, in those districts like Paravthipuram Manyam Districtthat are affected by the mining works. This has been set up to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the royalty contributions from mining companies/ individuals.

  • The Government of India vide Ordinance No.3 of 2015, dt.12.01.2015 issued amendments to Mines & Mineral (Development & Regulation) Act, 1957 and as per section 9(B)(1) of the Amended, “the State Government shall, by notification, Establish a Trust, as a nonprofit body, to be called the District Mineral Foundation” in any district affected by mining, related operations.

  • The Government of India vide Notification GSR No.715(E), dated 17.09.2015 issued notification for publication of the Mines & Minerals (Contribution to District Mineral Foundation) Rules, 2015 and fixing 10% of Royalty as DMF in respect of Prospecting Licence cum Mining Leases granted on or after 12.01.2015 and 30% of Royalty in respect of the Mining Leases granted before 12.01.2015.
  • Accordingly, the State Government vide G.O.Ms.No.42 Industries & Commerce (M.II) Department, dated 26.06.2015 decided, in principle, for establishment of District Mineral Foundations in each of (13) districts of Andhra Pradesh State, being mineral bearing Districts.
  • Subsequently vide G.O.Ms.No.36, Industries & Commerce (M.II) Department, dt. 14.03.2016 has issued the Andhra Pradesh District Mineral Foundation Trust Rules, 2016 and issued operational guidelines.

Establishment

As per instructions of Government of AndhraPradesh ,the District Mineral Foundation Fund Trust has been established to meet the requirements of the persons and areas affected by the Mining/quarrying activity. After reorganization of Districts the Government instructed to form the District Mineral Foundation trust for the newly formed 13 Districts vide G.O.Ms.No.40, Industries & Commerce (M-III), Dt:14.07. 2022. Hence, on 27.07.2022 District Mineral Foundation Trust Deed for the Parvathipuram, Manyam District was registered in the Joint Sub-Register, Parvathipuram vide No.4812 of 2022,established the District Mineral Foundation Trust. For this, the District Collector will be the Chair person and Managing Trustee. The funds will be deposited in DMF account as 30 % of Royalty / Seigniorage Fee of all minerals except Granite. On Granite the DMF is collected @12.5%. If the leases are granted through auctions, the DMF is collected @10%.

DMF Contributions

An amount of Rs.4,472 /- was collected for the month of October’ 2023. DMF contributionsare being received through CFMS. 95% of total DMF amount was allotted for Development in Mining Affected Villages, 2% of total DMF amount was allotted for Head Office for IT development and 3% of total DMF amount was allotted for DMF Secretariat Parvathipuram-Manyam District.

Governing Council Members
S.No Designation Committee Designation
1 Collector &the District Magistrate, Paravthipuram Manyam District Chair Person & Managing Trustee
2 Joint Collector Trustee
3 Project Officer ITDA / District Tribal Welfare Officer Trustee
4 Project Director,DRDA Trustee
5 District Medical & Health Officer Trustee
6 Joint Director ( Animal Husbandry) Trustee
7 Joint Director (Agriculture) Trustee
8 Superintending Engineer (Panchayat Raj) Trustee
9 Superintending Engineer (Rural Water Supply) Trustee
10 Superintendent Engineer (Tribal Welfare) Trustee
11 Superintendent Engineer (Irrigation) Trustee
12 District Education Officer Trustee
13 Project Officer (RVM) Trustee
14 General Manager (Industries) Trustee
15 CEO (ZP) Trustee
16 District Panchayat Officer Trustee
17 District Mines and Geology Officer Trustee

Further all the Hon’ble M..L.A s of the District and Hon’ble M.P  of Araku Parliamentary Constituency  are also members of DMFT Governing Counsel.

Objectives of the DMF

  • To work for the interest and benefit of the persons and areas affected by mining related operations
  • To plan, allocate and ensure effective utilization of the funds accruing to the DMF Establishment.
  • To ensure that the needs of the affected areas and families are addressed from time to time.
  • To ensure effective coordination and flow of information between the village level committee, Gramsabha, MRO/MDO offices and the Governing Council for proper decision making.

Identification of affected areas and people to be covered under the PMKKKY

The Government of Andhra Pradesh has issued guide lines vide G.O.Ms.No.01, Industries & Commerce (M-II) Department, dated 03.01.2017 made the District Mineral Foundation Trust Rules, 2016, on the Geographical limits of “Directly Affected” areas and “ Indirectly Affected” areas to implement developmental programmes in mining affected areas uniformly throughout the state, as follows:-

  • “Directly affected areas where direct mining-related operations such as excavation, mining, blasting, beneficiation and waste disposal including overburdened dumps, tailing ponds, transport corridors etc., are located”.
  • Mining Affected area under Rule 2(b) of DMF Trust Rules, 2016 shall be as Towns, Villages, Hamlets or Habitations, situated within a radius of 10 Kilometres from the periphery of Mines / Quarries / Cluster of Quarries, shall be taken up as Directly Affected Areas for utilization of funds under Rule 9 of DMF Trust Rules, 2016.
  • Indirectly affected areas means areas where local population is adversely affected on account of environmental consequences due to mining-related operations such as 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, and increased burden on existing infrastructure and resources.
  • Mining Affected area under Rule 2(b) of DMF Trust Rules, 2016 shall be as Towns, Villages, Hamlets or Habitations, situated within a radius of 10-25 Kilometres from the Mines / Quarries / Cluster of Quarries, shall be taken up as In-directly Affected Areas for utilization of funds under Rule 9 of DMF Trust Rules, 2016.

Affected People, Family

  • Affected family’ as defined under Section 3 (c) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
  • ‘Displaced family’ as defined under Section 3 (k) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
  • Any other as appropriately identified by the concerned gram Sabha.
  • Persons affected by mining should include people who have legal and occupational rights over the land being mined, and also those with usufruct and traditional rights.
  • Affected families should be identified, as far as possible, in consultation with local/elected representatives of gram Sabha.

Constitution, Composition, Powers & Functions of DMF:-

  • There shall be a Trust to be known as the District Mineral Foundation, constituted for each district of Andhra Pradesh.
  • The Trust shall be a perpetual body and shall have a common seal.
  • The Deed of Trust (Form A appended hereto) shall be registered in each district by the Secretary to Government, Industries & Commerce (Mines) Department or any person duly authorized on his behalf;
  • The Deed of Trust shall be read along with this Part for removal of any difficulties and operational issues.

Powers and Functions of the Governing Council:-

  • There shall be a Governing Council for the overall control over the management and day to day functioning of the Trust and shall, subject to the guidelines or directions, if any, issued by the State or Central Government from time to time, have the following powers and functions including but not limited to.
  • Prepare and maintain an updated list of directly and indirectly affected areas by mining related operations.
  • Approve the list of beneficiaries identified in the manner as specified in Part-XI.
  • Approve the master plan or perspective plan.
  • Guide the Gramsabha in the district by deciding the priority areas and sectoral allocations
  • Monitor and supervise the activities undertaken in scheduled areas
  • Ratify the appointment of auditors and approve annual reports
  • Monitor the proper functioning of the Trust
  • Approve the annual budget, audit report and annual plan of the Trust
  • Award contracts and works and sanction the payment
  • Grant administrative sanction for projects, release and disburse the Trust Fund
  • Appoint & Remove staff taken on outsourcing basis
  • Supervision of execution of contracts and works, and matters incidental thereto
  • Maintenance of proper books of accounts
  • Exercise due diligence in carrying out its duties for protecting the interests of the Trust
  • Ensure timely collection of Contribution Fund from the concerned Mining Lease Holders in accordance with the provisions of the Act
  • All such other activities which are required for proper administration and working of the DMF.
  • Any other activity incidental to or connected with any of the powers and functions as stated above

Contributions to DMF shall include among other, the amount payable by lessees of minerals

All holders of major minerals leases shall, in addition to royalty, pay to the respective District Mineral Foundation.

  • An amount equivalent to 30% of royalty, if the lease has not been granted through auction.
  • 10% of the royalty as fixed by the Central Government if the lease has been granted through auction; and
  • Any other voluntary contribution which is exempted under section 80 (G) of the Income Tax Act 1961.
  • The amount under sub-rule (a) and (b) shall become payable and be paid on the same day on which such royalty was payable to the Government.

All holders of the minor mineral leases shall, in addition to the Seigniorage Fee pay to the respective Trust:

  • An amount equivalent to 30% of Seigniorage fee, if the lease has not been granted through auction.
  • 10% of Seigniorage fee as fixed by the State Government if the lease has been granted through auction; and
  • Any other voluntary contribution which is exempted under section 80 (G) of the Income Tax Act 1961.
  • The amount under sub-rule (a) and (b) shall become payable and be paid on the same day on which such royalty was payable to the Government.

Monitoring of the amount payable to the Trust:

  • Every lessee shall remit the amount payable to the Trust online via E- Transfer, into the credit of such bank account as the Trust may specify, under intimation to the Officer to whom the royalty is payable.
  • Every Officer who is authorized to collect royalty shall maintain a register of the amount payable and paid by each lessee and furnish the monthly consolidated statement thereof to the Managing Trustee of the Governing Council at the end of every month.

Utilization of Funds of the DMF

The funds will be utilized for the creation and improvement of physical and social infrastructure for the benefit of affected areas and affected families.

  • 2% on total DMF Funds collected from the lease holders shall be transferred to a bank account maintained for this purpose by the Director of Mines & Geology to meet the expenditure on Information Technology for E-Governance.
  • District Mineral Foundation shall meet the expenditure from this fund which shall not exceed total 3% on total Fund collected in a financial year.

55% of the funds may be utilized Sector wise as follows

  • Drinking water supply including establishment of centralized purification systems, water treatment plants, Water Tanks, permanent/temporary water distribution network including standalone facilities for drinking water, and laying of piped water supply system.
  • Setting up of effluent treatment plants, mine drainage system, Investment in mine pollution prevention technologies in working or abandoned mines, and establishing air, water & surface pollution control mechanisms required for sustainable mine development.
  • Creation of primary / secondary health care facilities in the affected areas, by setting up of primary health centres and hospitals with necessary staff, equipment and medical supplies.
  • Treatment of mining related illnesses and diseases, by utilizing expertise of National Institute of Miners Health
  • Implementation of Group Insurance Scheme for mining affected persons
  • 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, Skill Development Centres, sports infrastructure, Industrial/Vocational Training Institutes, engagement of teachers/other supporting staff, Extension Facilities, and Distance Learning facilities and physical infrastructure at Intermediate and Degree Colleges in the affected areas, e-learning setup, and provision of transport facilities (bus/van/cycles/rickshaws/etc.).
  • Prevention and Cure for maternal and child health care, malnutrition, infectious diseases, etc.
  • Financial Assistance shall be released to the affected persons suffering from serious diseases or ailments or physical disorders viz., silicosis, caused due to mining operations.
  • Skill development for livelihood support, income generation and economic activities for local eligible persons. The projects/schemes may include training, development of skill development centre, self-employment schemes, Support to Self Help Groups and provision of forward and backward linkages for such self- employment economic activities
  • Collection, transportation & disposal of waste, cleaning of public places, provision of proper drainage & Sewage Treatment Plant, provision for disposal of fecal sludge, provision of toilets and other related activities. Provided that in the allocation of funds priority may be given to ameliorative measures in the affected areas for providing Safe Drinking water and Sanitation, Health and Mining related diseases and disorders like Silicosis, TB etc., Women Oriented welfare activity including skill development, and Environmental Protection measures to ensure quality of Air, Water and Soil.

High priority areas– at least 55% of PMKKKY funds to be utilized under these heads:

  • Drinking water supply
  • Environment preservation and pollution control measures
  • Health care
  • Education
  • Welfare of Women and Children
  • Welfare of aged and disabled people.
  • Skill development.
  • Sanitation

40% of the funds may be utilized for creation of

  • Building Roads, Bridges, and Waterway projects in the affected areas
  • Developing alternate sources of irrigation, adoption of suitable and advanced irrigation techniques.
  • Development of alternate sources of energy including micro-hydel and rainwater harvesting systems
  • Development of orchards, integrated farming and economic forestry and restoration of catchments
  • Measures for enhancing environmental quality in mining district.
  • Notwithstanding anything in these Rules, DMF Funds shall be released to user agency/ department in the district by District Collector only after execution of works by the user agency/department in instalments, and District Collector shall call for Expenditure Statements and Utilization Certificates from such user departments and no advance amounts shall be released.
  • Notwithstanding anything in these rules or any other rules in force, no monies from DMF account shall be spent for individual benefit and the DMF Fund shall be used only for community benefit by creation of physical and social infrastructure in the affected areas
  • Any deviation from the above allocation shall be permitted only with prior approval of the State Government

Other priority Areas – Up to 40% of the PMKKKY to be utilized under these heads

  • Physical infrastructure
  • Irrigation
  • Energy and Watershed Development
  • Any other measures for enhancing environmental quality in mining district

Mineral Wealth of the District:

The important Minerals that occur in the district are Quartzite , Colour Granite, Road Metal, Building Stone and Gravel in Makkuva, Salur, Pchipenta, Garugubilli, Seetanagaram, Balijipeta,Parvathipuram, Komarada, Jiyyammavalasa, Veeragattam, Seetampeta, BhaminiPalakondaMandalsof the District. Manganese is available inMakkuva and SalurMandals.

Further the DMF collected an amount of Rs.1,59,71,427 /- towards DMF from existing lease holders/Permit holders for the period 10.06.2022 to 31.10.2023 . The same amount will be utilized for developmental works of mining affected areas in the District.

Sanctioned projects under DMFT
S.No Project Name Priority (High / Other) Sanctioned Amount (in Rupees in Lakhs) Assembly Constituency
1 Construction of completion of incomplete Community Hall at Mosuru Village, Pachipenta Mandal, Parvathipuram Manyam District Other 10 Saluru
2 Construction of Community Hall Building at Vengapuram Village, Balijipeta Mandal, Parvathipuram Manyam District Other 20 Parvathipuram
3 Restoration to Vonigedda Escape Shutters of Vonigedda Anicut System in Vijayarampuram Village, Palakonda Mandal, Parvathipuram Manyam District Other 5 Palakonda