Federation of Indian Mineral Industries (FIMI), an apex body of mining companies in India have said that not even 30 per cent of the District Mineral Foundation (DMF) have been used till September this year.
DMF was constituted by the government for the welfare of the community residing near mining areas. By amending MMDR Act in 2015 mining companies were required to contribute to the DMF.
"Out of 1,35,472 welfare projects sanctioned by the government, only 52,342 have been completed and about 7,100 have been scrapped," FIMI said on Thursday.
R.K. Sharma, Secretary General of the Federation of Indian Mineral Industries (FIMI) said "the fact is that even today most of the funds in DMF remain unutilized, increasing the difficulties of mining companies towards getting consent to operate. The village community does not understand the contribution of the mining companies in DMF".