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Using the District Mineral Foundations for Environment and Development in Mining Areas 2 Using the District Mineral Foundations for Environment and Development in Mining Areas 2 © 2021 Rajiv Gandhi Institute for Contemporary Studies All rights reserved. This publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or otherwise provided it is used only for educational purposes and it is not for resale, and provided full acknowledgement is given to the Rajiv Gandhi Institute for Contemporary Studies as the original publisher. Published by: Rajiv Gandhi Institute for Contemporary Studies, New Delhi Images Courtesy: pxhere.com 3 Using the District Mineral Foundations for Environment and Development in Mining Areas 4 Table of Contents Foreword ....................................................................................................... 5 1. Impact of Mining on Environment and Development ................................ 6 2. District Mineral Foundations – An Institutional Solution ............................ 8 3. Overview of the Study of DMFs .............................................................. 12 3.1 Objectives of the Study ..................................................................... 12 3.2 Study Methodology ........................................................................... 13 3.3 Time Frame and Team ...................................................................... 13 3.4 Expected Benefit of the Study .......................................................... 14 4. Development Yardsticks of the States .................................................... 15 5. State-wise Analysis of Processes and Performance of DMFs ................ 21 5.1 Chhattisgarh ...................................................................................... 22 5.1.1 DMF Processes and Performance in Chhattisgarh ................. 24 5.1.2 Use of DMFs for Environment and Development .................... 26 5.2 Odisha ............................................................................................... 27 5.2.1 DMF Processes and Performance in Odisha .......................... 29 5.2.2 Use of DMFs for Environment and Development .................... 30 5.3 Rajasthan .......................................................................................... 31 5.3.1 DMF Processes and Performance in Rajasthan...................... 33 5.3.2 Use of DMFs for Environment and Development .................... 34 5.4 Madhya Pradesh ............................................................................... 35 5.4.1 DMF Processes and Performance in Madhya Pradesh .......... 39 5.4.2 Use of DMFs for Environment and Development .................... 41 5.5 Jharkhand ......................................................................................... 41 5.5.1 DMF Processes and Performance in Jharkhand ..................... 43 5.5.2 Use of DMFs for Environment and Development .................... 44 6. Using the DMFs for Environment and Development ............................... 46 6. 1 Improving the Processes and Performance of DMFs ...................... 46 6. 2 Using the DMF for Environment and Development ......................... 50 7. Reference ................................................................................................ 52 5 Foreword The Rajiv Gandhi Institute for Contemporary Studies (RGICS) works on five themes: 1. Constitutional Values and Democratic Institutions, 2. Governance and Development, 3. Growth with Employment, 4. Environment, Natural Resources and Sustainability and 5. India’s Place in the World. This report is one of the outcomes of research work undertaken, cross cutting three of the above themes. Here, the major focus is on good governance by studying the processes and performance of the District Mineral Foundations established to ensure that the negative impact of mining activities is not just mitigated but part of the fund is used for promoting sustainable development, keeping both inclusive growth and environmental conservation in mind. The report is based on data collected and interviews taken with the key stakeholders of District Mineral Foundation Trust of PMKKKY Scheme in the selected five states - Chhattisgarh, Odisha, Rajasthan, Madhya Pradesh and Jharkhand. We are thankful to the state authorities, elected representatives, senior officials and district administration of sampled districts, civil society organizations, state and district level project management units, etc., for their valuable inputs. This report is for a readership of policy makers, state government officials, social workers, planners and thinkers and such other concerned individuals. We hope it will be helpful in evolving the District Mineral Foundations into the direction where they can really be a force for environment and development in the mining areas. Vijay Mahajan Director, RGICS 6 Using the District Mineral Foundations for Environment and Development in Mining Areas 1. Impact of Mining on Environment and Development Mineral deposits are assets that can be used beneficially for mankind. Minerals’ forming deposits are regarded as non-renewable resources and are used by man for (a) material (b) sustenance of life and (c) energy requirements. The mining and quarrying of rocks and minerals are an age-old economic activity, though its nature and form have been changing over passage of time in many ways and means. The dependence of primitive societies upon mined products is illustrated by the nomenclature of those epochs: Stone Age, Bronze Age and Iron Age, a sequence which also shows the increasing complexity of society’s relationship with mining. In a sense, the history of mining is the history of civilization (Khoshoo, 1991). The history of mineral extraction in India dates back to the days of the Harappan civilization. The wide availability of the minerals provides a base for the growth and development of the mining sector in India. The country is endowed with huge resources of many metallic and non-metallic minerals. Mining sector is an important segment of the Indian economy. Since independence, there has been a pronounced growth in mineral production both in terms of quantity and value. India produces 95 minerals, which include 4 fuel, 10 metallic, 23 non- metallic, 3 atomic and 55 minor minerals. The total value of mineral production (excluding atomic and fuel minerals) during 2019-20 has been estimated at INR 1,23,588 crore in which metallic minerals is INR 60,822 crore or 49.21% of the total value and nonmetallic minerals including minor minerals is INR 62,766 crore or 50.79% of the total value. Socio-Economic problems in Mining Areas are almost the same in pan India, often the local populace know little about mining rules and policies, their rights and regulations, their occupational issues, process to mitigate their livelihood issues and problems, disturb family structure and system, health issues due to air, water, soil and noise pollution, burden of heavy traffic in all mode of commuting - roads and railways, accidents, road safety and security, mining closures, land reclamations, etc. Though, it is a major source of government’s revenue but somehow adversely impacts the lives of mining families, no matter whether they are directly or indirectly. A report published 7 by a team of independent researchers in November 2017, titled ‘Health and Environmental Impact of Mining in Chhattisgarh’, said that they found the presence of “worrisome levels of toxic substances that adversely affect human health” in soil and sediment samples from the area. The fear of reddish water contaminated with iron ore is very high in certain pockets of Dantewada, Chhattisgarh, it is because of high iron contains in water, hence, villagers less rely on hand pumps and women with handis (pots) on their heads going to fetch water to nearby comparatively pure water source, though the GoCG had tried a project in 33 villages adjoining to Nareli and Guhari, but it could not steal a march on. Keonjhar district, considered being the mining hub of Odisha, a total of 64 mining projects have led to the diversion of 10,451.39 hectares of forest land over 38 years. According to government data, this was the highest loss of green cover in any district in Odisha since 1980. Talakainsari is a village panchayat, comprising several villages, in the Banspal block of the district. Frequent dumping of processed rocks–mineral-rich rocks leftover after mining, which are a source of air pollution as they make the area dusty — has escalated the woes of villagers. The people in the Jadugoda area of Jharkhand are affected not only by radiation from tailing ponds but also by lack of security at the mines. Fatigue, loosing appetite, respiratory sicknesses, rises in miscarriages, impotency, infant mortality, Down’s syndrome, skeletal deformities and different skin diseases, children with big heads, thalassemia have been reported, also the chances of tuberculosis among the miners is very high. 8 2. District Mineral Foundations – An Institutional Solution In responding to the adverse consequences of mining activities, some of which have been documented in the section above, the Government of India has introduced a number of reforms. Simultaneous with the decision to open up the mineral sector to the private sector, the decision was balanced to ensure mining contributes to the sustainable development goals, by minimizing damage to environment, health and livelihoods. In fact, using the “polluter pay: principle’’,
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