Jharkhand Introduces New District Mineral Foundation Trust Rules

On October 7, 2024, the Government of Jharkhand announced the Jharkhand District Mineral Foundation (Trust) Rules 2024, aimed at addressing the impacts of mining operations on local communities and environments.

Key Provisions of the Trust Rules

1. Scope and Application:

• These rules extend across the entire state of Jharkhand.
• They apply to all minerals defined under the Mines and Minerals (Development and Regulation) Act, 1957, including any minor minerals as notified under the Jharkhand Minor Mineral Concession Rules, 2004.

2. Objectives of the District Mineral Foundation:

• The Trust aims to benefit individuals and areas affected by mining activities.
• It will implement the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) with specific objectives:
  • Develop and execute welfare projects in mining-affected regions, complementing existing government schemes.
  • Mitigate adverse environmental, health, and socio-economic impacts of mining.
  • Ensure sustainable livelihoods for communities affected by mining operations.

Financial Provisions and Penalties

1. Trust Fund Contributions:

• Licensees must make contributions to the Trust at the same frequency as they pay royalties to the government.

2. Penalties for Delayed Payments:

• If a licensee fails to pay on time:
  • First 3 Months: A 12% interest will accrue on the overdue amount.
  • Next 3 Months: If still unpaid, the interest rate increases to 20%.
  • After 6 Months: Legal proceedings may be initiated against the licensee.
  • After 1 Year: Recommendations for suspension of the mining license will be made.

3. Accountability for Trust Members:

• Any Trust member found guilty of embezzlement will face prosecution akin to any other individual committing a similar offense.

Conclusion

The Jharkhand District Mineral Foundation (Trust) Rules 2024 represent a proactive approach to manage the socio-economic and environmental repercussions of mining in the state. By emphasizing community welfare and sustainable practices, the government aims to create a more responsible mining environment.

This shall come into effect from October 9^th 2024.