Jharkhand District Mineral Foundation (Trust) Rules, 2024

[07th October 2024]

PREAMBLE

In exercise of the powers conferred by Section 15(4) and Section 15 A of the Mines and Minerals (Development and Regulation) Act, 1957 (as amended), the Government of Jharkhand hereby makes the following rules:-

Rule 1. Short title and commencement.

(a)      These rules may be called the Jharkhand District Mineral Foundation (Trust) Rules, 2024.

(b)      They shall be deemed to have come into force on the date of their publication in the official Gazette.

Rule 2. Application.

(a)      These rules shall extend to the whole of the state of Jharkhand.

(b)      They shall apply to all minerals, as defined in schedule - I/Part A, Part - B, Part - C and fourth Schedule as specified under the Mines and Minerals (Development and Regulation) Act, 1957 (as amended in 2015) and any other minerals which the Central Government may by notification in the Official Gazette notify.

(c)      They shall apply to all Minor Minerals as duly notified under Jharkhand Minor Mineral Concession Rule, 2004 and as amended time to time and notified in the official gazette of State Government of Jharkhand.

Rule 3. Definitions.

(1)     "Act" means the Mines and Minerals (Development and Regulation) Act, 1957 (as amended in 2015).

(2)     "Affected areas": - As defined in PMKKKY Guidelines issued by Ministry of Mines, Government of India

(3)     "Affected People": - As defined in PMKKKY Guidelines issued by Ministry of Mines, Government of India

(4)     "beneficiaries" mean the affected persons as identified by the Management Committee.

(5)     "District Mineral Foundation" means a statutory trust established as a non-profit body by the Government in all districts affected by mining or mining related operations, in accordance with Section 9B of the Act;

(6)     "Government" means Government of Jharkhand.

(7)     "Gram Panchayat" means an institution of self-government for the rural areas as defined under Article 243(d) and 243B of the Constitution of India.

(8)     "Gram Sabha" means a body consisting of persons registered in the electoral rolls relating to a village comprised within the area of Panchayat at the village level as defined under Article 243(b) of the Constitution of India.

(9)     "Rules" means the Jharkhand District Mineral Foundation (Trust) Rules, 2024;

(10)   "Trust" means the District Mineral Foundation, which is a statutory trust as notified by the Government of Jharkhand to be governed by its own rules and regulations so notified under these Rules.

(11)   "PMKKKY ", Means Pradhan Mantri Khanij Kshetra KalyanYojana

(12)   Urban Local body means duly elected Urban Local Institutions viz Nagar Parishad, Municipal Council etc. under the provisions of Jharkhand Municipal Act, 2011.

Rule 4. Objective of the Trust.

(1)     The District Mineral Foundation shall work for the interest and the benefits of persons, and areas affected by mining related operations in such manner as prescribed under these rules.

(2)     The District Mineral Foundation shall also implement the PMKKKY with the following overall objectives:

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

Rule 5. Identification of Affected Area.

(a)      Directly Affected Areas Villages and gram panchayats or Urban Local bodies (ULBs) within which the mines are situated and are operational. Such mining areas may extend to neighboring village/town, block or district or even State.

(i)       An area within such radius from a mine or cluster of mines as may be specified by the State Government.

(ii)      Villages/wards in which families displaced by mines have been resettled/rehabilitated by the project authorities.

(iii)     Villages/wards that significantly depend on the mining areas for meeting their economic needs and have usufruct and traditional rights over the project areas, for instance, for grazing, collection of minor forest produce etc. should be considered as directly affected areas.

Provided that directly affected area is an area within such radius from a mine or cluster of mines as may be specified by the State Government but shall not extend beyond 15 km from the boundary of the mines.

(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.

Indirectly affected area is an area beyond the directly affected area and within such radius from a mine or cluster of mines as may be specified by the State Government but not more than 25km from boundary of mines, irrespective of whether this falls within the district concerned or adjacent district.

(c)      The DMF shall prepare and maintain an updated list of such directly and indirectly affected areas.

Rule 6. Identification of Affected People.

(1)     The following shall include directly affected persons:

(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)      Any other as appropriately identified by the concerned Gram Sabha/ULB in directly or indirectly affected area.

(2)     Persons affected by mining, including people who have legal, occupational, rights over the land being mined, those with traditional or usufruct rights and those whose livelihoods have been affected due to mining.

(3)     Identification of the Affected People as far as possible should be in consultation with the, local/elected representatives of gram sabha/Urban Local Body(ULB)in directly or indirectly affected area.

(4)     The DMF shall update the list of Affected People/local communities. The list shall be revisited for updating at least once every 5 years.

Rule 7. Composition and Management of the Trust.

(1)     For the smooth running of the District Mineral Foundation Trust, the Governing Council and the Managing Committee are constituted as follows: -

(a)      Governing Council

(b)      Management Committee

(2)     The objective of the District Mineral Foundation Trust will be for the benefit of the affected persons/families in the mining area as per the District Mineral Foundation Rules prescribed by the State Government.

(3)     In case of one Member of Parliament (MP) in a district, MP, Lok Sabha of the district shall be a member of the Governing Council.

(4)     In case, there is more than one MP of Lok Sabha in a district, all MPs having mining affected areas as part of their constituency shall be members of the Governing Council.

(5)     In case, the constituency of one MP of Lok Sabha falls in more than one districts, the MP of Lok Sabha shall be member of the Governing Council of all such districts where mining affected area is a part of his/her constituency.

(6)     MP of Rajya Sabha from a State shall be a member of the Governing Council of one district selected by him/her. (The Rajya Sabha MP shall intimate name of the district selected by him/her to the Secretary in-charge of Mining Department of the State who in turn shall inform the District Collector concerned).

(7)     The Members of Legislative Assembly (MLAs) of the district having mining affected area as part of their constituency shall be members of the Governing Council. In case, the constituency of an MLA falls in more than one districts, the MLA shall be member of the Governing Council of all such districts where mining affected area is a part of his/her constituency.

(8)     An account will be opened in the name of a suitable trust in a scheduled commercial bank other than foreign bank as soon as the state order is received, for the operation of which the management committee will be able to authorize the officials.

(9)     The term of office of the trustee nominated in the Governing Council will be 03 years, but the term of the person who has been nominated as a trustee in the Governing Council will not exceed two terms.

(10)   The rights and duties of the Governing Council and the Management Committee will be in the light of the notable directive /functions in the District Mineral Foundation Trust.

Rule 8. Powers and Functions of the Trust.

The managing committee shall be responsible for Collection of Funds from lessees/licensee/ permit holders/ auctioneer in the manner prescribed below:

(1)     (i) Ten per cent of the royalty paid in terms of the second schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) (herein referred to as the said Act) in respect of mining leases or, as the case may be, prospecting licence-cum-mining lease granted on or after 12th January, 2015; and

(ii) Thirty per cent of the royalty paid in terms of the second schedule to the said Act in respect of mining lease granted before 12th January, 2015. [as contained in Ministry of Coal, notification new Delhi, the 17th September, 2015, G.S.R. 715(E)]

(iii) Every holder of a mining lease or a prospecting licence -cum-Mining lease in respect of coal and lignite and sand for stowing shall, in addition to the royalty paid to the District Mineral Foundation of the district in which the mining operation are carried, an amount at the rate of

(a)      Ten per cent of the royalty paid in terms of the second schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) (Herein referred to as the said Act) in respect of mining lease or, as the case may be, prospecting licence -cum- mining lease granted on or after 12th January, 2015 and

(b)      Thirty percent of the royalty paid in terms of the Second Scheduled to the said Act in respect of mining lease granted before 12th January, 2015. [as contained in Ministry of Coal, notification new Delhi, the 20thOctober, 2015, G.S.R. 792(E)]

(iv) DMF contribution can also be collected for lease of minor mineral in the following manner:-

(I)      Thirty percent of the royalty will be paid by lease holders towards DMF contribution for the existing leases which are not granted through auction.

(II)     Ten percent of the royalty will be paid by lease holders towards DMF contribution for the leases which are granted through auction.

The implementation will take effect in accordance with the Order dated October 13, 2017, in the Honorable Supreme Court Case (Transferred Civil No. 43 of 2016, FIMI & Others vs. Union of India and Anr).

(2)     Mode of Payment of contribution: - online through JIMMS /WAMIS Portal.

(3)     If the affected area of a mine in one district also falls in the jurisdiction of another district (even if it is another state), such percentage of amount collected from the mine by the Foundation in proportion of affected areas, shall be transferred to the Foundation of the other district concerned for taking up the activities in such areas.

(4)     A project that is for benefit of the affected area/people but stretches beyond the geographical boundary of the district should be taken up under the PMKKKY after obtaining prior approval of the State Government.

The management Committee shall also be responsible for:

(1)     The Management Committee shall have all such powers as may be necessary for discharge of its functions specified in these rules.

(2)     To prepare the Annual Plan based on five-year perspective plan and supervise and ensure the execution of the approved plans, programmes, and projects.

(3)     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.

(4)     To prepare, maintain and update a list of Affected Areas and Affected People.

(5)     Approving the lists of work under Priority and Other Priority areas beneficiaries as identified by the committee.

(6)     To open bank accounts in the name of the District Mineral Foundation and operate such accounts and investments

(7)     Undertaking such other activities as are in furtherance of the objective of the Trust, and as per the provisions laid in the guidelines of PMKKKY.

(8)     Organizing meetings of the Trust.

(9)     To monitor the progress of the utilization of funds by the District Mineral Foundation.

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

The Governing Council shall be responsible for:

(1)     The Governing Council shall have all such powers as may be necessary for discharge of its functions specified in these rules.

(2)     To consider and approve the recommendations of the Management Committee,

(3)     To approve of the Five year perspective plan, annual plans based on perspective plan, Annual Report and Audit report of the District Mineral Foundation

Rule 9. Meeting of the Trust.

The Governing Council shall meet at least twice in a year. The Management Committee shall meet at least once every quarter.

Rule 10. Constitution of State Level Monitoring Committee.

The State Level Monitoring Committee shall comprise of following members:

(1)     The State Level Monitoring Committee shall monitor performance of DMFs and compliance of transparency norms, audit and annual report of DMFs.

(2)     The State Level Monitoring Committee shall meet at least twice in a year.

(3)     The Director, Mines shall constitute a State Level Nodal DMF Cell for monitoring of DMFs in the State and shall act as the Secretariat to the State Level Monitoring Committee.

Rule 11. Special Provisions.

(A)     Special Provisions for Scheduled areas

The process to be adopted for utilization of funds by the District Mineral Foundation in the scheduled areas shall be guided by the provisions contained in Article 244 read with Fifth and Sixth Schedules to the Constitution relating to administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.

In respect of villages affected by mining situated within the scheduled areas:

(a)      Approval of the Gram Sabha shall be required

(i)       for all plans, programs and projects to be taken up under PMKKKY.

(ii)      identification of beneficiaries under the existing guidelines of the Government.

(b)      ReportontheworksundertakenunderPMKKKYintherespectivevillageshallbefurnished to the Gram Sabha after completion of every financial year.

[Gram Sabha will have same meaning as assigned to it for the purpose of implementation of the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (Act 40 of 1996)]

(B)     Special Provisions for areas other than as mentioned in Rule-11A

(1)     The Gram Sabha in consultation with the Mukhiya/Up-Mukhiya shall identify work to be carried out under priority and other priority area.

(2)     In the case of Urban Area, Municipal Commissioner/CEO or any other designated officer/team of officers of the Urban Local Body will prepare the plan in consultation with the ward Commissioners of the affected area and will put-up before the Governing Board of the respective Urban Local Body, the Governing Board after due consultation will pass a resolution approving the proposed plan in its meeting.

Rule 12. Development of Five-Year Perspective Plan and Annual Plan.

For complete coverage of all affected people and areas in a systematic and time-bound manner, long-term planning is essential. For proper utilization of funds for the implementation of works using District Mineral Foundation (DMF) funds:

(a)      The districts shall conduct a baseline survey through Academic Institutions/ Renowned organisations/ agencies for perspective plan formulation. Gram Sabha/Local Bodies may aid in preparation of need assessment reports. The DMF may also use the baseline survey undertaken by any Department, if available. The reference and major findings of the surveys should be included in the Perspective Plan sunder PMKKKY for the District.

(b)      Based on the findings and gaps as identified through the baseline survey or any such survey/assessment, the DMF shall prepare a strategy for five years and the same shall be included in the Perspective Plan. The five-year Perspective Plan shall be prepared taking in to account current balance available and likely accrual to the DMF over a period of five years. The five-year Perspective Plan shall be disaggregated into year-wise action plans.

(c)      The five-year Perspective Plan shall have separate sections on all priority sectors like drinking water, health, education, welfare of women and children, etc. and other sectors like roads, irrigation etc.

(d)      The five-year Perspective Plan shall be approved by the Governing Council of the DMF and displayed on the website of the DMF.

(e)      The Annual Plans of the DMF to be approved by Governing Council each year shall be based upon the five-year perspective plan and success achieved in fulfilling its targets in earlier years. The Annual Plans may include some other works and expenditures considered urgent in nature although not included in the perspective plan to a maximum extent of 10% of the annual plan.

(f)       The Governing Council shall approve the five years perspective plan and annual plan comprising of list of projects to be taken up in financial years.

Rule 13. Annual Report.

(a)      Every year, within three months from the date of closure of the financial year, the DMF shall cause to prepare an Annual Report on its activities for the respective financial year and place it before the DMF.

(b)      The Annual Report will be submitted to the State Government within one month from the date of its approval by the DMF and will also be hosted on the website of the Foundation.

(c)      The Annual Report of each Foundation shall be laid before the State Legislative Assembly.

Rule 14. Utilization of Funds.

In accordance with the directives outlined in the PMKKKY Guidelines issued by the Ministry of Mines, Government of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

Rule 15. Operation of the Trust Fund.

(1)     The Trust Fund shall be kept in Scheduled Commercial Banks other than foreign Banks through bank account in the name of the Trust.

(2)     The Trust shall maintain the books of accounts of this Fund.

(3)     The power to give administrative sanction of schemes of a maximum amount of Rs.1 crore is to be done by the Deputy Commissioners.

(4)     Administrative sanction of schemes above Rs.1crore up to 5crores will be done by the management committee of DMFT instead of the Divisional Commissioner.

(5)     Administrative sanction of schemes for amounts more than Rs.5crore will be given by the management committee on the opinion of concerned technical department on technical standards of scheme selection/preparation of plan/DPR/estimate

(6)     Upon the completion of the scheme, a completion certificate will be issued by the relevant technical department.

Rule 16. Endowment Fund.

In accordance with the directives outlined in the PMKKKY Guidelines issued by the Ministry of Mines, Government of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

Rule 17. Restriction on Fund Transfer from DMF.

In respect to the DMF Funds of the districts

(i)       The provisions of Section 9B of the Act shall be strictly adhered to in respect of utilisation of funds by the District Mineral Foundations.

(ii)      No fund shall be transferred in any manner from the District Mineral Foundations to the State exchequer or State level fund (by whatever name called) or Chief Ministers Relief Fund or any other funds or schemes; and

(iii)     No sanction or approval of any expenditure out of the fund of the District Mineral Foundation shall be done at the State level by the State Government or any State level agency.

(iv)    No fund shall be spent outside directly or indirectly affected areas within a districtor for other than affected people as defined in PMKKKY guide line sissued by Govern ment of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

(v)      No fund shall be transferred in any manner from one district to another district except as mentioned in Section 2(d) of PMKKKY guidelines issued by Government of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

(vi)    The approval of expenditure of funds from DMF lies solely with the Governing Council of DMF. The State Government or State Level Committee (by whatever name called) shall not have overarching authority on sanction of projects, approval of funds/expenditure and their function shall be limited to monitoring effective implementation of projects sanctioned under PMKKKY.

Rule 18. Penalty and recovery of contribution to Trust Fund.

(1)     The licensee shall make the required payment to the Trust in the same frequency as the licensee is required to pay royalty to the Government.

(2)     In case the licensee fails to make the required payment to the Trust on time, then following shall apply -

(a)      In addition to the principal amount so payable, a 12 per cent interest shall incur to the licensee from first date of the default, which the licensee will be required to pay for the following three months to the Trust as applicable.

(b)      In case the licensee continues to default after the expiry of the stipulated three month period, then in addition to the principal amount so payable, a 20 per cent interest shall incur to the licensee for the next three months.

(c)      In case of failure to make the required payment after six months from the date the licensee first started to default on the payment, the Government shall initiate appropriate legal proceedings against the licensee.

(d)      In case the licensee does not make the required payment for one year, the mining license shall be recommended for suspension to appropriate authority.

(3)     In case any member of the Trust is found to embezzle any money or other property whereby the Trust Fund may be exposed to loss, shall be subject to the same prosecution as any person, not a member, would be subject and liable to in respect of the like offence.

Rule 19. Audit.

(1)     The accounts of the DMF shall be audited by the Comptroller and Auditor General (CAG) as per schedule decided by CAG.

(2)     The accounts of the DMF shall be audited every year by a Chartered Accountant appointed by the DMF, or in such other manner as the Government may specify, and the report thereof shall be placed in the public domain along with Annual Report.

Rule 20. Implementation of Works/Contracts.

(1)     Works /goods may be procured by the DMF after following due procedure prescribed by the respective State Governments for such procurements.
Procurement through GeM portal should be preferred.

(2)     Transfer of fund to all executing agencies and beneficiaries shall be through Direct Benefit Transfer (DBT) only into their bank account.

Rule 21. Transparency and Accountability.

(1)     Every District Mineral Foundation shall maintain a website/ or a specific section on the website of District Administration.

(2)     The website of District Mineral Foundation shall be updated on a periodic basis and shall include the following information, namely:

(a)      Details of the composition of Governing Council and Management Committee of DMF

(b)      Particulars of Affected Area and Affected People (including periodic updation)

(c)      Quarterly details of all contributions made to the District Mineral Foundation, received from lessees and others.

(d)      Agenda, minutes and action taken reports of the DMF

(e)      5 years Perspective Plan, details of investment of endowment fund, Annual Plans and budget, work orders and Annual Report within 30 days of issuance of the document.

(f)       Online status of ongoing work-Implementation status or progress of all the plans, programmers 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, financial and physical progress up to the previous quarter etc.

(g)      List of beneficiaries under various welfare programs.

(h)     Voluntary disclosures under RTI Act.

(3)     Each Foundation shall display description of the project and amount sanctioned on a notice board at the project site.

(4)     Information, Education and Communication(IEC) activities to create awareness regarding schemes implemented under PMKKKY through social media, films, videos etc.

(5)     The District Mineral Foundation (DMF) shall share information pertaining to performance of DMF including depos it of funds and implementation of works to the State Government and Ministry of Mines, Government of India as per the formats prescribed and manner specified.

(6)     The Central Government shall develop an online portal for facilitating administration of DMF including approval of projects, release of funds and monitoring of implementation of the projects. Each DMF shall compulsorily sanction, release funds and monitor execution of projects through the online portal only from the date as may be notified by the Central Government.

Rule 22. Project Management Unit.

In accordance with the directives outlined in the PMKKKY Guidelines issued by the Ministry of Mines, Government of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

Rule 23. Convergence of Schemes.

In accordance with the directives outlined in the PMKKKY Guidelines issued by the Ministry of Mines, Government of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

Rule 24. Compliance Mechanism.

In accordance with the directives outlined in the PMKKKY Guidelines issued by the Ministry of Mines, Government of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

Rule 25. Grievance Redressal.

In accordance with the directives outlined in the PMKKKY Guidelines issued by the Ministry of Mines, Government of India vide order no.F.N.16/53/2022-M.IV dated 15.01.2024 (Annexure I).

Rule 26. Repeal and Saving.

(1)     On the commencement of these rules, the Jharkhand District Mineral Foundation (Trust) Rules, 2016 and its subsequent amendments shall cease to be enforce with respect to all minerals for which Jharkhand District Mineral Foundation (Trust) Rules, 2024 are applicable except as regards things, done or omitted to be done before such commencements.

(2)     On the commencement of these rules, with respect to the minerals to which these rules apply, any reference to the Jharkhand District Mineral Foundation (Trust) Rules, 2016 in the rules made under the Act or any other documents shall be deemed to be replace with the Jharkhand District Mineral Foundation (Trust) Rules, 2024 to the extent, it is not repugnant to the context thereof.

Rule 27. Review Clause.

The provisions declared under such Rules shall stand revised in accordance with the PMKKKY Guidelines issued by Government of India from time to time.