The mines ministry has proposed the creation of a national fund by levying a cess of 10 per cent on royalties on all mine lessees. The proceeds would then be utilised to detect and prevent illegal mining besides developing awareness on mining in mining zones. If the ministry has its way, the government could mobilise nearly Rs 2,000 crore.

“The money to be pooled into the National Mineral Fund would be utilised to assist the Indian Bureau of Mines in enforcement of the provisions of the MMSDR Act. The Act, which was drafted by the ministry, is likely to be presented in the winter session of Parliament,” a senior ministry official said. He pointed out that the fund, to be controlled by the Central government, would be a non-lapsable one. The official said states would be empowered to collect the proposed cess. States would, in turn, credit half the proceeds to the consolidated fund and credit the other half to their exchequers. The matter is one of the key clauses suggested by the ministry in the newly drafted legislation to amend the Mines and Minerals Development and Regulation Act (MMDR), 1957.

While administering the fund, the Centre would have the sole discretion for fixing criteria for allocation of money for achieving desired objectives, the official said. He asle said that the ministry had proposed in the legislation that the rate of cess would not be enhanced more than once in three years. “The proceeds would be used to promote scientific mining and ensuring mine closures. We are aiming at strengthening the capacity of the IBM in enforcing the provisions of the proposed Act, besides utilising the proceeds to detect and contain illegal mining.”

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