Road construction is a critical need for people in mining-affected areas in Sundargarh district but it is the least priority for the District Mineral Foundation (DMF), which has collected about Rs 369.25 crore in Sundargarh district.
The DMF has spent only 8 per cent of total money on road construction activities in various mining affected areas. Recently, mining companies in Bonei sub division were told to repair road connecting to railway siding from NH 215 but mining companies feel since they are currently struggling in prevailing market condition, it would be double taxing for them to spend money on construction of road.
The DMF is established by the Governments under section 9B of Mines and Minerals (Development and Regulation) Act, 1957 as amended as Mines and Minerals (Development and Regulation) Amendment Act, 2015.
As per the guideline, 40 per cent could have been spent for physical infrastructure development that includes road construction. However, only Rs 17.84 crore is spent for physical infrastructure, out of which expenditure of only Rs 12.852 crore is made towards construction of roads.
It may be mentioned that contribution to DMF by the miners is over and above their implementation of sustainable social development projects under CSR which is now mandatory under Company Act. 2 per cent of the average net profit of the last three years is required to be expended under CSR under the specific activities enumerated under schedule VII of Section 135 of the Companies Act 2013. Infrastructure projects like construction of major roads are normally not treated as ideal projects under the CSR as per the Union Ministry of Corporate Affairs' clarifications. Moreover, the constraints in operation of mining in Odisha during last three years are well known to the Government of Odisha. Therefore their mandatory spending under CSR by the miners is either nil or quite minimum. But to the extent of mining, they are paying the applicable royalty and up to 30 per cent of the royalty is being contributed by them towards DMF over and above the royalty.
“Since mining and metal industries are undergoing a very lull period, it would be double taxing for the mining companies to spend money of construction road, after contributing to DMF, paying royalty and spending 2 per cent of the profit for mandatory CSR work,” said mining experts. The Government, as it collects huge revenue from mining, should not shift the responsibility to the miners and escape their core job. Otherwise, an environment of distrust between the miners and the community will be developed, which in turn will not only create law and order problem but also affect revenue collection by the Government.
Significantly, the CITU and the CPM had held economic blockade in different areas in Bonei sub division led by Bonei MlA laxman Munda on August 31 and September 1 demanding repairing of NH 215/520 and other roads (connecting NH to Railway siding via village area). To resolve this issue, a meeting was held in the office of Bonei Sub-Collector on September 1.
Bonei Sub Collector Swadha Deb Singh had directed different mining companies of the locality to mainly repair different connecting roads to different railway sidings, since these roads are mainly used by the mining company vehicles.
Sundargarh Collector V.Bhardwaj said, "The mining companies there have been told only to repair the road connecting NH to railway siding via village. However, if any of these companies shows incapability in doing repair work of road, we will definitely look into it and decide.” “We are using funds of DMF for various projects in district.” Bhardwaj added.