State control over District Mineral Foundation {DMF} resources in Chhattisgar his destroying the primary essence of this people-centric scheme, says CSE’s latest analysis

CSE releases the crucial 2018 assessment of the DMF scheme.

Chhattisgarh one of the top five mining states assessed closely

  • Report analyses 12 mining states. Does in-depth assessment of five major mining states, including Chhattisgarh
  • Nine districts surveyed. In-depth analysis done for Korba, Dantewada and Raigarh
  • Chhattisgarh one of the top three states in terms of DMF collection -- total cumulative accrual of Rs 2,746 crore till April 2018; about 57 per cent of this from coal mining
  • About Rs 3,133 crore sanctioned for projects under DMF -- about 28 per cent of this for physical infrastructure, 25 per cent for education. Utilisation: 50 per cent
  • No proper planning; no consultations with Gram Sabhas
  • State government playing a central role in directing investments by creating provisions in the Rules to include “public welfare” projects in line with the state’s discretion.
  • In contravention to the MMDR Act, Chhattisgarh DMF Rules also have a ‘Settlor’ position, who has an over-riding power to include or scrap any project
  • State allows six major districts – Korba, Dantewada, Raigarh, Balod, Balodabazar and Korea – to share percentage of DMF funds with 14 other districts on the pretext of “effects of mining reaching the neighbouring areas”. All these districts have been loosely categorised as “mining affected”
  • District DMF body dominated by government officials and political representatives; poor representation of people
  • Only three out of the nine districts surveyed have set up a DMF office; posts remain vacant
  • Critical issues like healthcare, child nutrition etc have been ignored by DMFs  
प्रेस विज्ञप्ति

सीएसई के नवीनतम विश्लेषण में बताया गया है, छत्तीसगढ़ में डिस्ट्रिक्‍ट मिनरल फाउंडेशन {डीएमएफ} के संसाधनों पर राज्य के नियंत्रण से इस जन-केंद्रिक योजना का मूल उद्देश्‍य पूरा नहीं हो पा रहा है

New Delhi, July 31, 2018: With the state government playing a nodal role in directing investments, and people almost completely excluded from DMF planning and decision-making, the District Mineral Foundation scheme in Chhattisgarh has lost its most important attribute in the state – that of being a people-centric measure, to be managed and decided on by the people for their own benefit. This is a key finding of a report by Centre for Science and Environment (CSE) released here today. 

People First: District Mineral Foundation (DMF) Status Report, 2018 – as the report is called -- is an assessment of DMF as it enters its fourth year. The report covers 12 states in the country, and closely studies the investments in 13 districts in the top five states, including Chhattisgarh. The report was released in the presence of representatives from the state and Central governments, district administrations from mining-affected districts, NGOs and media. 

“DMF is a people-centric vision of natural resource governance where their right to benefit has been put at the forefront. If developed and implemented well, DMFs not only have huge potential for improving the lives and livelihoods of some of the poorest communities, they can also be a model for inclusive governance,” said SunitaNarain, director general, CSE, while releasing the report. 

DMFs have been instituted to be established as a non-profit Trust in every mining district of the country under the Mines and Minerals (Development and Regulation), Amendment Act, 2015. They have a precise and legally defined objective to work for the interest and benefit of persons and areas affected by mining-related operations. 

The DMF collection in Chhattisgarh is Rs 2,746 crore till April 2018. The topmost districts in the state in terms of DMF collection are Korba (Rs 674 crore), Dantewada (Rs 216 crore) and Raigarh (Rs 122 crore). 

“DMF is a defining opportunity to overturn the decades of injustice meted out to the millions of people living in deep poverty and deprivation in India’s mining districts. But DMF can only deliver if it is implemented in the letter and spirit of the DMF rules under the Mines and Minerals (Development and Regulation), Amendment Act, 2015. Our assessment shows that so far Chhattisgarh has failed to implement DMF in the right spirit,” said Chandra Bhushan, deputy director general, CSE. 

People excluded from DMF planning and decision-making
There is no scope for representation of mining-affected communities in the district DMF bodies in Chhattisgarh. The DMF body is dominated by district officials and political representatives from mining areas. The only ‘people’s representation’ comes from a few elected members of Panchayati Raj Institution (PRI). 

The state government is playing a nodal role in directing investments. Firstly, an over-riding power has been given to a Settlor (who is the state mines secretary) to include or scrap any projected he/she deems fit. Secondly, the state has amended its Rules to include “public welfare” as a high priority area for investment, opening another caveat for the state to include any state or central government scheme it deems as priority. Currently, investments for Pradhan MantriUjjawalaYojna is being made in districts through this. 

No district has developed a comprehensive DMF plan to ensure need-based investments in mining-affected areas. The work sanctions so far are adhoc

The role of the Gram Sabha, which has been clearly defined particularly for Scheduled V areas, has been completely sidelined. The whole of Korba and Dantewada, and part of Raigarh (including mining areas) are classified as Schedule V areas. The approval of Gram Sabha is mandated for projects in these areas. Gram Sabha is also supposed to identify beneficiaries. “However, there is little information available showing that Gram Sabha consultation has happened for approvals for works,” says Srestha Banerjee, programmemanager, environmental governance unit, CSE. 

“The Gram Sabha has been completely marginalised in DMF implementation in Chhattisgarh. Identification of beneficiaries for DMF has not been done so far. This has left out some of the worst-affected people – those displaced due to mining operations and those with traditional rights on the land that is being mined – from the benefits of DMF,” adds Bhushan. 

DMF office still not in place despite state direction
Despite an order by the state government creating posts of DMF offices in all districts, only three among the surveyed nine districts reported having a functional DMF office with most posts filled. Others are still operating without one. “A full-time DMF office comprising planning experts who can do a gap-analysis, conduct consultations with the Gram Sabha and plan DMF investments based on the district’s resources, is essential to ensure inclusive and effective planning is done,” said Srestha. “Not having an office with the relevant expert staff will come in the way of proper planning for DMFs,”she added. 

Chhattisgarh is one of the states which has developed an online DMF website with district-specific information. The website contains details of the DMF trustees and members, fund allocation, progress of projects, audit reports and in case of some districts, minutes of the DMF body meetings. However, information on mining-affected areas, DMF beneficiaries, annual reports etcare still not available in public domain. The state Rules and the Centre’s flagship scheme -- Pradhan MantriKhanijKheshtraKalyanYojana (PMKKKY) -- aligned to DMFs, mandate all details on DMF be provided in the public domain. 

Construction-driven investment
About Rs 3,133 crore has been sanctioned in Chhattisgarh for projects under DMF; about 28 per cent of this is for physical infrastructure and about 25 per cent for education. While education is an area of investment, the larger proportion of this has been on construction. A classic example is Korba where education has the highest investment so far, but about 70 per cent of it is for building an education hub. 

“The district has picked the right issue. However, the education hub has kept the district’s focus singularly on construction. Given the high drop-out rate in schools, and shortage of teaching staff , the district should have considered simultaneous investments in addressing the various resource gaps in schools to make education more accessible to those living in the mining areas,” said Srestha. 

Physical infrastructure is evidently a big focus in all three districts analysed in-depth. Raigarh, for instance, has directed 40 per cent of its Rs 123 crore investments towards construction of roads and bridges. Dantewada too has invested about 34 per cent of its Rs 380 crore budget for this. 

Veering away from worst affected mining areas
CSE’s analysis of the investments also shows a trend among districts to invest sizeable share of DMF funds in areas which are not directly-affected by mining operations. 

In Korba, about 46 per cent investments are in urban areas even when 75 per cent of the district’s directly-affected villages are located in the rural parts. The urban investments range from construction of multi-level parking lots, convention halls and bus stops to investments in an urban project like the Atal Mission for Rejuvenation and Urban Transformation (AMRUT). “These are strictly urban development projects which have no bearing on the mining-affected areas to begin with,” said Srestha. 

Dantewada has invested 25 per cent of its total sanctions in Geedam, where the proportion of villages directly affected by mining is miniscule. Worst affected blocks like Kuwakonda have only 12 per cent of total investments so far.“These investments go against the fundamental principle of DMF, that funds must be used for those worst affected by mining-related operations,” Srestha added. 

Missing critical issues
Governed by the state’s directions as they are, and having neglected planning and kept the people away from decision-making, all districts have missed out on some of the most pressing issues that plague mining-affected areas. 

Despite high malnutrition and under five mortality rate (U5MR) in all mining-affected areas, some of which are also tribal areas, all districts have largely overlooked issues of women and child development. In Raigharh, for instance, about 75 per cent of the total investments is going only for physical infrastructure, the Pradhan MantriUjjawalaYojna and electrification of villages, the last two being the state government’s mandates. 

Dantewada has invested only 1.6 percent of its total funds on women and child development despite 45 per cent of its children under the age of five growing up stunted and more than 53 per cent being underweight. 

Healthcare investments have been largely overlooked in Korba and Raigarh. “If proper planning was done, child nutrition, healthcare and drinking water would have been the top priorities for all three districts,” said Srestha.Dantewada is an exception here. The district has invested Rs 51 crore (13.4 per cent of total investments) in healthcare – on infrastructure building and hiring of healthcarepersonnel, especially doctors. 

CSE recommends

  • Intended autonomy of DMF Trusts should be maintained; state governments shall only provide necessary guidance to ensure proper planning, investments and functioning of the Trust.
  • All districts must identify DMF beneficiaries; there cannot be a Trust without beneficiaries. This will also help in targeted investments such as for addressing women and child development issues.
  • Gram Sabhas (and ward members where applicable) should have a representation in the DMF body. Not following this is in contravention to the spirit of the DMF law.
  • For efficiency of operations, all DMFs must have an office comprising of officials and experts. Independent organizations/planning experts can be roped in from time to time for effective planning.
  • DMFs must undertake perspective planning to address immediate as well as long-term needs of the people and areas affected by mining. An outcome-oriented approach should be adopted to ensure long term improvements. Intermediary activities as planned to achieve such outcomes should be monitored from time to time.
  • A systematic and bottom-up approach must be adopted to make investments effective. The potential can also be improved by considering convergence with other programmes of the central and state governments once priority issues are determined.
  • Public disclosure of information is key to DMFs’ transparency of operation. District-specific DMF-related information must be made available through a website. To ensure people’s access, information should be shared by using panchayat-level platforms. 

“As we enter the fourth year of DMF implementation, it is time to sort out the planning and implementation issues. Without bottom-up planning and proper institutional structure, DMF will not be able to deliver. We need the involvement of the beneficiaries in planning and monitoring to make DMF transparent and accountable. Let this be the agenda for the coming year,” summarisedBhushan.

  • For interviews and any other assistance, please contact ParulTewari of The CSE Media Resource Centre – / 9891838367