2462 is necessary to implement strict water conservation norms, such as Zero liquid discharge and acid mine drainage treatment, as per the Water Act, 1974, specifically in zinc-lead-copper mines. Biodiversity Companies need to adopt and apply the principle of environmental sustainability from a lifecycle perspective, prioritising the maintenance of the region's biodiversity and ecology. Obtaining statutory clearances is not enough to meet the threshold of environmental conservation. Compensatory Afforestation Fund Management and Planning Authority (CAMPA), as mandated by the Compensatory Afforestation Fund Act, 2016, plays a crucial role in offsetting forest loss through institutionalised afforestation and conservation measures. The National Compensatory Afforestation Fund and the State Compensatory Afforestation Funds have been established at both the central and state levels to monitor and regulate CA effectively. From FY 2018 to FY 2022, INR 57,326 crore ($6.3 billion) was transferred from the national CAMPA to state CAMPAs, of which only 32% have been utilised. Odisha, Madhya Pradesh, Chhattisgarh, Jharkhand, and Maharashtra are the bulk recipients. Approximately INR 38,699 crore ($4.2 billion) is with the state governments and can be used to improve forest and wildlife habitats (Govt. of India, 2023). A Controller Auditor General's report highlights serious irregularities in the use of CAMPA funds in Madhya Pradesh between FY 2018 and FY 2020, with an estimated impact of INR 365 crore ($39.9 million). Key findings include violations of the forest land diversion procedure, short or non-transfer of land for CA, dubious expenditures, and erroneous site selection for plantations (Government of Madhya Pradesh, 2023). Pillar 3: Community Benefit Sharing DMF Efficiency Mining companies are required to contribute 10% to 30% of their royalty dues to the District Mineral Foundation (DMF) managed by the government. The total DMF collection for India is INR 143,919 crore ($15.8 billion), of which only INR 63,056 crore ($6.9 billion, 43.7%) has been utilised; the majority remains unspent. Rajasthan has one of the lowest DMF utilisation at only 11.5%, Odisha (31%) performs slightly better, while Chhattisgarh (87%) has had high fund utilisation (Ministry of Mines, 2026). DMF funds have often been spent on supporting development projects in non-mining regions and low-priority sectors. The district-level DMF governance committee comprises elected representatives and other officials. It has been criticised for delayed decision-making and inefficient fund allocation. Developmental projects such as physical infrastructure often receive attention because they are more tangible and visible. In contrast, social and environmental arenas receive less focus due to the need for sustained planning, long-term commitment and investment. CSR Efforts Additionally, the Companies Act, 2013 mandates companies with net profits of INR 5 crore ($527,000) or more to contribute 2% of their net profits to Corporate Social Responsibility (CSR). Among the largest mining companies in India, TATA Steel and Vedanta allocate the highest share of their revenue to CSR projects, far beyond the required legislative mandate (CSR Box, 2024). However, during field visits to mining regions where both companies operate, community members have raised concerns about a limited focus on skills training and local employment. CSR activities have often been carried out in an ad hoc manner, without a baseline assessment of priority development areas. Both DMF and CSR activities need to complement each other to support more structured community development. Community Co-Ownership Forest-dependent communities are among the most vulnerable to displacement from mining and development projects. Schedule 5 of the Indian Constitution places restrictions on the use of tribal land. It imposes a responsibility on the state to govern these regions in the best interests of the tribal community. However, mining activities are permitted in these regions, provided they comply with the state's regulations.
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