Tamil Nadu, which has long been delaying setting up the District Mineral Foundation, has finally notified the institution and has framed the rules to govern the body.
The DMF would ensure that a part of the royalty received by the Central and State governments is earmarked for developing areas affected by mining activities.
“The notification of the foundation would help in various development works in districts across the State. In Tamil Nadu, except Chennai and the Nilgiris, minerals are mined in all other districts,” Industries Secretary Atulya Misra said.
Cuddalore, Nagapattinam, Thoothukudi and Tirunelveli districts are mineral-intensive and these areas have witnessed heavy mining of various minerals over the years. “The DMF would ensure that sufficient funds would be earmarked for the development of these districts,” he said.
Though the Centre had promoted the concept of instituting the DMF a few years ago, 11 major mineral States, except Tamil Nadu, set up the foundation and framed rules.
According to the notification, every holder of a mining lease or quarry lease will contribute an amount to the foundation. This will be in addition to the seigniorage fee to be paid under the Tamil Nadu Minor Mineral Concession Rules, 1959.
Drinking water supply, health care, education, welfare of women and children and welfare of the aged and disabled people and skill development are likely to be the areas in which development work is to be undertaken from funds from the DMF.
Governing body
The District Collector would be the Chairperson, the District Revenue Officer would be Vice-Chairperson and the Deputy Director or Assistant Director of Geology and Mining would be the Convener in the Governing Council and the Managing Committees of the DMF in each of the districts.
