Question : Welfare Schemes in Mining Companies

(a) the details of various welfare schemes being run by mining companies operational in tribal areas across the country;

(b) the details of the rules and guidelines formulated for the welfare schemes being run in tribal areas;

(c) whether the said schemes have been implemented by the companies during the last three years and if so, the detailed information thereof; and

(d) the results of programmes implemented by the above companies?

Answer given by the minister

THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS
(SHRI PRALHAD JOSHI)
(a) & (b): The mining companies operating in tribal areas and otherwise are required to comply with the provisions contained in the Mines Act, 1952 and Mines Rules for the welfare of workers employed in mines. Besides the welfare activities for the employees of mines, the mining companies are also obliged under Corporate Social Responsibility (CSR) to spend at least two percent of the average net profit of the company made during the three immediately preceding financial years, towards implementation of CSR activities as per the CSR policy framed by the company under Section 135 of the Companies Act, 2013. Proviso to Section 135(5) of the Companies Act, 2013 also mandates that the companies shall give preference to the local area and areas around it where they operate for spending the amount earmarked for CSR activities.
In addition, Section 9B of Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 provides for establishment of District Mineral Foundation/ Jila Khanij Pratishthan (DMF) in each district affected by mining related operations. The DMF is funded by statutory contributions from holders of mining lease. The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) provides implementation framework for schemes to be undertaken for welfare and development of mining affected areas and people through the funds collected under DMFs. Directions in this regard have been issued under section 20A of MMDR Act, 1957 on 16.09.2015 to all the State Governments to incorporate PMKKKY into the rules framed by them for the DMF and to implement the said scheme.
PMKKKY provides for utilization of at least 60% of the funds for high priority areas like: (i) drinking water supply; (ii) environment preservation and pollution control measures; (iii) health care; (iv) education; (v) welfare of women and children; (vi) welfare of aged and disabled people; (vii) skill development; and (viii) sanitation. The rest of the funds will be utilized for other priority areas (i) physical infrastructure; (ii) irrigation; (iii) energy and watershed development; and (iv) any other measures for enhancing environmental quality in mining district.
(c) & (d): The details of implementation or non-implementation of welfare schemes/programmes as well as activities carried out by mining companies under CSR is not maintained by Ministry of Mines.
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