7-Dec-2022: NSIC signs MoU with Walmart

A MoU was signed between Walmart Global Sourcing India Private Limited and The National Small Industries Corporation Limited on 6th December, 2022 . The MoU was signed by Shri Gaurang Dixit, Chairman and Managing Director, NSIC and Ms. Prameela Mallaiah, Director and Hub Leader, Walmart in the presence of Union Minister of MSME Shri Narayan Rane.

Through this MoU NSIC will be able to extend the NSIC schemes and other services to MSMEs who would participate in various Vriddhi program. Moreover, the MSMEs would get the exposure to various advantages of gaining working capital, bulk procurement support etc. under various opportunities offered by NSIC. MSMEs who are part of the NSIC ecosystem will also be linked to the Vriddhi program in relevant clusters and get access to existing business training content, advisory support, tools and knowledge under the program – “free of cost”. The MoU will play a critical role in enabling MSME’s reach $2 trillion worth of exports by 2030.

During the event, Shri Narayan Rane said, “I'm glad to see that Walmart's Vriddhi program has enabled a large number of Indian MSMEs to expand, boost their production, and experience growth. Walmart has been instrumental in enabling MSMEs with training and capacity building, especially through the pandemic. The Indian MSME sector currently comprises of 6.3 crore MSMEs that employ more than 11 crore people. We look forward to Walmart’s continued support to the growing MSME sector in the country.”

Adding to what Shri Rane said, Shri Gaurang Dixit, Chairman-Cum-Managing Director, NSIC, said, “NSIC is committed to the growth and development of a robust MSME sector in India. We look forward to working with Walmart Vriddhi to help MSMEs under the program get access to our schemes and make the learning resources of Vriddhi available to MSMEs under NSIC. Through this partnership, MSMEs across the country can get the necessary support required to further expand their businesses nationally and across the globe.”

20-Oct-2022: NSIC Signs MoU with Phillips Machine Tools India Pvt. Ltd.

Shri Narayan Rane, Union Minister of MSME graced the occasion of MoU signing between the National Small Industries Corporation Ltd. (NSIC) and Phillips Machine Tools India Pvt. Ltd. for Skill Development Training in Additive Technologies on October 18, 2022 in New Delhi

Shri B.B. Swain, Secretary (MSME), Shri Gaurang Dixit, CMD, NSIC and Ms. Mercy Epao, Joint Secretary (SME) were also present on the occasion. The MoU was signed by Shri Navin Chopra, CGM-SG (Tech. /MIS), NSIC.

Shri  Rane said that the signing of this MoU between NSIC and Phillips India will be a significant step for preparing skilled manpower in additive technologies which is the future of manufacturing. He stated that both organizations can leverage their expertise and create excellent opportunities for MSMEs in this upcoming field.

24-Mar-2022: Price Of Raw Materials

The National Small Industries Corporation Limited (NSIC) a Public Sector Undertaking under the Ministry of Micro, Small and Medium Enterprises (MSME) facilitates MSMEs to meet their raw material requirement by making arrangements with bulk manufacturers for procuring the materials and supplying the same to MSMEs. NSIC also provides financial assistance to MSMEs under their Raw Material Assistance (RMA) Scheme against bank guarantee for payment to the suppliers. The issue of regular increase in prices of raw materials specifically post Pandemic was regularly taken up by NSIC with the bulk producers. Further, the Government of India has taken several measures to deal with the issue of rise in raw materials including MSME sector, which include:

  1. To ensure enhanced production and availability of iron ore and steel, steps like reforms in mining and mineral policy early operationalization of forfeited working mines of Odisha by the State/Central PSUs and ramping up production and capacity utilization by steel producers have been taken by the Government.
  2. In Union Budget 2022-23, Custom Duty exemption on steel scrap has been extended for up to 31st March, 2023 to provide relief to the MSME secondary steel producers. In addition, considering prevailing high prices of steel products, certain anti-dumping duties and countervailing duties on steel have been revoked in larger public interest. Also, in order to incentivize domestic manufacturing of umbrellas by MSMEs, customs duty on umbrellas have been raised to 20% and customs duty exemptions available to parts of umbrellas have been withdrawn.
  3. To give relief to secondary and MSME sector, steel industry engaged in Housing/construction sector, TMT bars below 8 mm have been exempted from the purview of the Quality Control Order, as these are primarily used for non-critical applications.
  4. Ministry of Steel has also issued clarifications to CPWD, MoRTH etc. that steel produced through various routes of production using iron ore, steel scrap and DRI should be treated at par if the steel produced conforms to the relevant BIS standards.

3-Feb-2022: Price increase of raw materials

The National Small Industries Corporation Limited (NSIC) a Public Sector Undertaking under the Ministry of Micro, Small and Medium Enterprise (MSME) facilitates MSMEs to meet their raw material requirement by making arrangements with bulk manufacturers for procuring the materials and supplying the same to MSMEs. NSIC also provides financial assistance to MSMEs under their Raw Material Assistance (RMA) Scheme against bank guarantee for payment to the suppliers. The issue of regular increase in prices of raw materials specifically post-pandemic was regularly taken up by NSIC with the bulk producers. Further, the Government of India has taken several measures to deal with the issue of rise in raw materials including MSME sector, which include:

  1. To ensure enhanced production and availability of iron ore and steel, steps like reforms in mining and mineral policy early operationalization of forfeited working mines of Odisha by the State/Central PSUs and ramping up production and capacity utilization by steel producers have been taken by the Government.
  2. In Union Budget 2021-22, Customs Duty has been reduced uniformly to 7.5% on Semis, Flat and Long products of non-alloy, alloy and stainless steels. Further, Basic Custom Duty (BCD) on steel scrap has been exempted for a period up to 31st March, 2022. In addition to the above, ADD and CVD on certain steel products have also been revoked / temporarily revoked.
  3. To give relief to secondary and MSME sector steel industry engaged in Housing/construction sector, TMT bars below 8 mm have been exempted from the purview of the Quality Control Order, as these are primarily used for non-critical applications.
  4. Ministry of Steel has also issued clarifications to CPWD, MoRTH etc. that steel produced through various routes of production using iron ore, steel scrap and DRI should be treated at par if the steel produced conforms to the relevant BIS standards.

28-Oct-2020: NSIC observes vigilance awareness week

As part of observing Vigilance Awareness week, Shri Vijayendra, CMD, National Small Industries Corporation (NSIC)  administered the “Integrity Pledge for Organisations “on the occasion of Vigilance Awareness week. NSIC is an organisation under the Ministry of Micro, Small and Medium Enterprises.

Also present on this occasion were Shri. P. Udayakumar, Director (P&M), Shri Gaurang Dixit, Director (Finance), NSIC and Shri Rajan Trehan, CVO, NSIC along with NSIC employees. This awareness week campaign affirms NSIC’s commitment to promotion of integrity and probity in public life through citizen participation. All employees have been advised to strictly adhere to extant Covid-19 prevention guidelines and focus on internal (housekeeping) activities which are to be taken up in campaign mode as part of the Vigilance Awareness Week this year. NSIC observes the Vigilance Awareness Week from 27th October to 2nd November, 2020  with the theme of the week being “सतर्कभारत, समृद्धभारत - Satark Bharat, Samriddh Bharat (Vigilant India, Prosperous India)”.

22-Jun-2019: NSIC signs MoU with Common Service Centres– eGovernance Services India for enhancing new offerings for the MSME sector

The National Small Industries Corporation signed an MoU with Common Service Centres (CSC) e-Governance Services India in New Delhi, for enhancing new offerings for the MSME sector by synergizing each other's competence.

Shri. Ram Mohan Mishra stated that this MoU will have special focus on providing services to village level entrepreneurs (VLEs) and would lead to exponential growth of Village Entrepreneurs in the country. The MoU will also enable CSCs to utilize plethora of NSIC offerings through the NSIC portal www.msmemart.com.

Dr. Dinesh Kumar Tyagi, CEO, CSC said that CSC will facilitate VLEs and MSMEs through digital empowerment in accessing NSIC integrated support services encompassing Marketing, Finance, Technology and other offerings.

28-May-2019: NSIC signs MOU with Ministry of MSME

The National Small Industries Corporation Limited (NSIC) signed a Memorandum of Understanding (MOU) with Ministry of Micro, Small and Medium Enterprises (MSME) for the year 2019-20.

The MOU envisages provision of enhanced services by NSIC under its marketing, financial, technology and other support services schemes for MSMEs in the country. The Corporation projects to increase Revenue from operation by 22% from Rs. 2540 crore in the year 2018-19 to 3100 crore in the year 2019-20. NSIC also projects growth of 32% in Profitability during the year 2019-20.  The Corporation also plans to enhance its activities in the areas of imparting entrepreneurship and skill development training by targeting 45% growth in the number of trainees.

Under the scheme of National SC-ST Hub being implemented by NSIC on behalf of the Ministry of MSME, it will be a continued endeavour to provide assistance to SC/ST entrepreneurs through different interventions and various outreach activities with the overall objectives to increase their participation in public procurement.

Dr. A.K. Panda, Secretary, Ministry of MSME, while appreciating the performance of NSIC, suggested that greater efforts should be made to expand the reach of NSIC so that it may serve larger number of MSMEs in the country.

4-Dec-2022: 189th Meeting of Employees’ State Insurance Corporation (ESIC) chaired by Union Minister of Labour and Employment Shri Bhupender Yadav

The 189th Meeting of Employees’ State Insurance Corporation was held today at ESIC Headquarters under the Chairmanship of Shri Bhupender Yadav, Union Minister for Labour and Employment, and Environment, Forest and Climate Change. During the meeting several important initiatives were announced.

Acknowledging the considerable increase in the number of Insured Workers and their dependents coming under the ambit of ESI Scheme, Shri Bhupender Yadav, Union Labour Minister directed ESIC to lay emphasis on strengthening the infrastructure. He further informed that ‘Nirman Se Shakti’ initiative has been started to strengthen and modernize the infrastructure of ESIS hospitals and dispensaries in a phased manner. During the meeting, Shri Rameswar Teli, Minister of State for Labour and Employment, and Petroleum and Natural Gas, Government of India, informed that the latest technologies are proposed to be adopted by ESIC for construction and monitoring of projects using drones and online real time dashboard.

With the vision to improve the healthcare and benefits services delivery mechanism and strengthen the infrastructure of ESIC towards managing the increasing number of insured workers coming into the ambit of ESI Scheme, ESIC approved the proposals for setting up new 100 bedded ESIC Hospital at Shyamlibazar, Agartala, Tripura and 100 bedded ESIC Hospital at Idukki, Kerala. The 100 bedded ESIC Hospitals at Agartala and Idukki will cater to the medical needs of around 60 thousand beneficiaries each.

Considering the significant increase in the number of candidates for admissions under Ward of IPs Quota in ESIC Medical Institutions, the Corporation approved the proposal of increasing the number of seats under Wards of Insured Persons (IPs) category in two of its ESIC Nursing Colleges at Gulbarga and Bengaluru. Further, the ESI Corporation also approved the proposal to start Ph.D., MDS, nursing and paramedical courses in its medical institutions spread across country.

Due to the relatively low returns on debt instruments coupled with the need to diversify, the ESI Corporation accorded its approval for investments of surplus funds in equity, restricted to Exchanged Traded Funds. The initial investment shall start at 5% and increase up to 15% gradually, after review of two quarters. The investment will be confined in Exchanged Traded Funds i.e., Nifty50 and Sensex. It will be managed by Fund Managers of AMCs. The equity investment will be monitored by existing Custodian, External Concurrent Auditor and Consultant looking after the debt investments in addition to the management of ETF for equity.

ESI Corporation accorded in-principal approval for execution of Annual Repair Maintenance & Operational work (ARMO) and Special Repair (SR) works by the Engineering Wing under the Project Management Division (PMD) of ESI Corporation. It was also decided to execute the Capital works in ESIC through Central / State PSUs besides CPWD. A fresh empanelment of such Central / State PSU will be invited by the ESIC for empanelment in due course.

Two winners of the Architectural Design Competition for 500 bedded ESIC Hospital, Manesar were felicitated by the Union Labour Minister with a prize money of Rs. 2 Lakh and Rs. 1.5 Lakh respectively. The design competition was announced by Union Labour Minister during laying the foundation for 500 bedded ESIC Hospital at Manesar. The competition was conducted to encourage and give opportunities to young architect students to come up with the best architectural designs for ESIC Hospital, Manesar. Similar type of competition is also being organized for ESIC Hospitals, Sanand and Kalol, Gujarat.

During the meeting Shri Bhupender Yadav released the first issue of the monthly digital journal of ESIC – ‘ESI Samachar’.

The Annual Accounts of the Corporation for the year 2021-22 together with the report of CAG and Annual Report of ESI Corporation for the year 2021-22 along with its analysis were approved and adopted by the Corporation. It will now be laid in the Parliament after approval of the Ministry of Labour and Employment, Government of India.

The meeting was attended by Ms. Dola Sen, MP, Shri Ram Kripal Yadav, MP, Shri Khagen Murmu, MP, Ms. Arti Ahuja, Secretary (L&E), Dr. Rajendra Kumar, Director General, ESIC and Dr. M Srinivas, Director, AIIMS, New Delhi. Principal Secretaries/Secretaries of the State Governments, Representatives of Employers, Employees and Experts of the medical field were also present during the meeting.

7-Nov-2022: Vigilance Awareness Week successfully conducted at ESIC

The closing ceremony of ‘Vigilance Awareness Week’ (31.10.2022 – 06.11.2022) was held on 07th November, 2022 at ESIC Headquarters. Shri Suresh N. Patel, Central Vigilance Commissioner graced the function as the Chief Guest. The other dignitaries who graced the event were Shri P. Daniel, Secretary, Central Vigilance Commission, Dr. Rajendra Kumar, Director General, ESIC, Shri A. K. Kanoujia, Addl. Secretary, Central Vigilance Commission, Ms. T. L. Yaden, Financial Commissioner, ESIC and Shri Manoj Kumar Singh, Chief Vigilance Officer, ESIC along with other senior officers of ESIC. All the Field Offices and Hospitals/Medical Colleges joined the function through on-line mode.

The ‘Vigilance Awareness Week’ commenced with taking Integrity Pledge on 31st October, 2022. Various activities viz. Essay Writing Competition, Quiz, Painting Competition and Debate were also conducted during the whole week to instill the theme of “Corruption Free India for a Developed Nation” and to increase awareness among the various stakeholders to fight the menace of corruption. Besides conducting activities during the Vigilance Awareness Week, ESIC also started observing 03 months precursor campaign to Vigilance Awareness Campaign from 16.08.2022 to 15.11.2022. During precursor campaign also, various activities focusing on preventive vigilance cum internal housekeeping were conducted.

In his speech, during the event, Shri Suresh N. Patel, Central Vigilance Commissioner said that corruption has to be eradicated completely to see India developed. He also added that individuals should maintain their integrity throughout their life. Dr. Rajendra Kumar, Director General, ESIC emphasized on leveraging the latest technologies in providing services in more transparent manner by minimizing human intervention. He also said that the Employees’ State Insurance Corporation is striving to ensure not only a corruption free environment to everyone but also provide the best quality of services.

Shri P. Daniel, Secretary, Central Vigilance Commission appreciated the work done and measures taken by ESIC and said that with the use of technology the menace of corruption can be combatted effectively. He emphasized on the three-pronged approach of Central Vigilance Commission viz. Punitive Vigilance, Preventive Vigilance and Participative Vigilance for realizing a corruption free India. Shri. A. K. Kanoujia, Addl. Secretary applauded the efforts of ESIC for providing Social Security benefits to the weaker sections of the society. He advised to execute the daily jobs honestly and diligently, follow proper GFR Rules and go by the manuals for living a corruption free life.

Shri Manoj Kumar Singh, Chief Vigilance Officer, ESIC during his introductory speech said that around 356 pending vigilance complaints were disposed of during the 03-month long precursor campaign on ‘Vigilance Awareness Week’.

4-Oct-2022: Dr. Rajendra Kumar takes over the charge of Director General, ESIC

Dr. Rajendra Kumar, a senior IAS officer from Tamil Nadu Cadre (Batch : 1992) took over the charge of Director General of Employees’ State Insurance Corporation (ESIC) under Ministry of Labour & Employment, Govt. of India at its Headquarters on 04.10.2022 in New Delhi. Before assuming the charge of Director General, ESIC, Dr. Rajendra Kumar, IAS has served as an Additional Secretary in the Ministry of Electronics and IT (MeitY) in the Government of India.

Upon taking charge he chaired a meeting of the senior officers and said that ESIC should look after the workers well and provide the best quality services to them so as to make a positive impact on the society.  He stressed upon improving its service delivery mechanism, by augmenting technology and ensuring adequate presence across the country.

Dr Rajendra Kumar has got vast experience of governance and management of District & State level Organisations. He has also served as the Principal Secretary in the Departments of Micro, Small and Medium Enterprises and Youth Welfare & Sports Development in the Government of Tamil Nadu.

Dr. Rajendra Kumar, has a Ph. D in International Economic Development and Regional Planning from Massachusetts Institute of Technology, USA, an    M. Tech in Management and Systems from Indian Institute of Technology, Delhi and a B.tech in Civil Engineering from Indian Institute of Technology, Kanpur. Besides having an impressive and stupendous academic background, he is also a prolific writer having published a book, several research papers in international journals and articles on technology and policy in leading newspapers and magazines to his credit.

10-Sep-2021: Key decisions announced at the 185th meeting of ESIC

The 185th meeting of the Employees' State Insurance Corporation(ESIC) concluded today held at Rishikesh in Uttarakhand saw a slew of important decisions announced by Union Minister for Labour and Employment, Shri Bhupender Yadav.

Shri Yadav announced approval of 5-acre land parcels for acquisition to set up new 100 bedded ESIC hospitals at Haroholli and Narsapur in Karnataka, seven new ESIC dispensaries for Kerala among other things.

Stating that the government under the guidance and direction of Prime Minister, Shri Narendra Modi is focused and committed towards targeted delivery of services by ensuring last mile deliveries promptly, the Minister further announced that the ‘’Atal Beemit Vyakti Kalyan Yojana’ is now extended up to 30th June 2022. This is a scheme for unemployment allowance paid at 50 percent of wages for 3 months to those insured persons who lose their jobs for any reason. 

During the meeting It was also decided that wherever in-house facilities are not available in ESIC hospitals, patients would be referred to empaneled private medical service providers and furthermore, wherever any ESI facility is at a distance of more than 10 kms from the IP, patients can directly approach the empaneled hospitals for treatment.

One 30 bedded hospital was also approved for Shahjahanpur in Uttar Pradesh and a dedicated earmarked fund was also accorded approval to provide for long term liabilities for the ESIC COVID relief scheme. It was also decided that the ESIC Dental College working from temporary structures at Rohini, in Delhi would be shifted to new building at the ESIC Hospital Basai Dara Pur campus.

The meeting was also attended by Sri Rameswar Teli, Minister of State in the Labour and Employment Ministry, Member of Parliament from Rajya Sabha Ms. Dola Sen, Secretary Ministry of Labour and Employment and Information and Broadcasting, Shri Apurva Chandra, Ms. Anuradha Prasad, Special Secretary, Ministry of Labour and Employment.

10-Jun-2021: ESI coverage for casual and contractual employees of Municipal bodies in the States/UTs​

Union Minister of State (I/c) for Labour and Employment Shri Santosh Gangwar today announced the decision to extend coverage under the Employees’ State Insurance Act, 1948 (ESI Act) to all casual and contractual workers working in the municipal bodies in the country. He said, the ESI Corporation has been directed to take up the matter with the States/ UTs, being the appropriate Government(s) under the ESI Act, for issue of notification for coverage of casual and contractual workers in the Municipal Corporation(s)/ Council(s) in their respective jurisdictions. The coverage shall be extended to those casual and contractual employees/ agencies/ establishments which are within the implemented areas already notified under the ESI Act, 1948 by the Central Government.   ​

For National Capital Region of Delhi, the Central Government being the appropriate government under the ESI Act, the Ministry of Labour and Employment has already issued intention notification dated 7 June, 2021 for coverage under the ESI Act of casual and contractual employees working with Municipal Corporations/ Council in the NCT of Delhi.

The Minister informed that various municipal bodies in different States and Union Territories in the country employ a large number of casual and contractual workers. However, not being regular employees of the Municipal Corporations/Municipal councils, these workers remain out of the social security net making them a vulnerable lot. He said, this important decision has been taken to address this issue.

Shri Gangwar said that ESI coverage of casual and contractual employees working with municipal bodies shall go a long way in providing social security cover to a very vulnerable segment of the workforce. This shall contribute to social upliftment of this segment of workforce and their families.

Once notifications for ESI coverage are issued by the respective States/ UTs, the casual and contractual workers working with municipal bodies will be able to avail the full gamut of benefits available under the ESI Act such as sickness benefit, maternity benefit, disablement benefit, dependent’s benefit, funeral expenses etc. In addition and importantly, these workers will be eligible to avail medical services through vast network of ESI facilities i.e. 160 hospitals and over 1500 dispensaries all over the country.

15-Mar-2021: Health Services Under ESIC

The Employees’ State Insurance (ESI) Corporation has decided to expand coverage of ESI Scheme and thereby health services under medical benefit to all the districts of the country in a phased manner.  Further, opening new dispensaries and hospitals to provide services to ESI beneficiaries is an on-going process.

Apart from beneficiaries of ESI schemes, health services of under-utilized ESIC hospitals have been made available to non-Insured Person (IPs).

The ESIC facilities are being given to the employees working in the factories and establishments covered under the ESI Act, 1948 and drawing wage upto Rs.21000/- per month (Rs.25,000/- per month for persons with disability). The following steps have been taken by the ESIC for bringing maximum  number of employees under ESIC coverage :-

  1. The ESI Scheme has been fully extended to 389 districts where the scheme was partially available at different centres. Apart from that the scheme has also been extended to 186 districts where it is available in district headquarters areas and prominent industrial centres. As a result, the implementation of ESI Scheme has expanded from 393 districts in 2015-16 to 575 districts at present.
  2. Survey drive is conducted from time to time for coverage of factories and establishments not covered under the ESI Act.
  3. On receipt of any complaint from the workers, Trade Unions etc. regarding non-coverage of factories and establishments or employees, action is taken as per the provisions of the ESI Act, 1948 and the Rules & Regulations framed there under.

1-May-2017: "One IP- Two Dispensaries" launched

Minister of State (I/C) for Labour and Employment, Shri Bandaru Dattatreya launched “One IP- Two Dispensaries” scheme on the occasion of International Labour Day. 

Under One IP- Two Dispensaries scheme ESIC has given an option to an Insured Person (IP) to choose two dispensaries, one for self and another for family through an employer. This will benefit all IPs, especially migrant workers who are working in other than home State, while their families are living in their native States. Because of non-availability of option of second dispensary, the dependant members of family are often deprived of medical benefits. By introducing the concept of ‘One IP- Two Dispensaries’, IP as well as their family members would now be able to get treatment from either of the dispensaries and in case of emergency from any ESI Institution. As of now, around 3 crores IPs are covered under ESIC and total number of beneficiaries i.e. IPs and their family members is over 12 crores.

7-Nov-2022: District Mineral Foundation Constituted in 622 Districts so far

As per the latest figures of Ministry of Mines, District Mineral Foundation (DMF) has been constituted in 622 Districts spread across 23 States of India. The concept of DMF was introduced through amendment in Mines & Minerals (Development & Regulation) MMDR Act, 1957. The amended Act inter –alia introduced section 9 B which provides for establishment of DMF, a trust as non- profit body, in all districts affected by mining related operations. The objective is to work for the interest and benefit of people and areas affected by mining.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is being implemented through the funds collected under DMF. Till September this year, Rs. 63534.07 crore stands allocated and Rs. 37422.94 crore has been spent. Out of 2,52995 projects sanctioned under the Yojana  1,33144 projects have been completed so far.

11-Sep-2021: Exemption of District Mineral Foundations (DMF) from Income Tax

The Union Mines, Coal and Parliamentary Affairs Minister, Shri Pralhad Joshi has thanked Hon’ble Prime Minister Shri  Narendra Modi for exempting 165 District Mineral Foundation Trusts (DMF), from Income Tax payment. Through the amendment in Mines & Minerals (Development & Regulation) (MMDR) Act, in 2015, Government of India has made provision for establishment of District Mineral Foundation in all the districts affected by mining. The object of the District Mineral Foundation is to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government. So far, DMFs have been set up in 600 districts in 22 States in the country which have framed DMF rules.

Shri Joshi has also thanked the Union Finance Minister Smt. Nirmala Sitharaman. A Gazette notification has been issued to this effect yesterday by Ministry of Finance (Department of Revenue) (Central Board of Direct Taxes). Ministry of Mines has taken up with Ministry of Finance regarding issuance of notification for Income-tax exemption u/s 10(46) of the Income-tax Act, 1961 in respect to the District Mineral Foundations.

Ministry of Finance has taken measures to get the DMF trust exempted from Income Tax. Section 10(46) of the Act was amended by Finance Act 2018 so that all the DMF Trusts could be notified as ‘Class of Authority’. Accordingly, Ministry of Finance, Department of Revenue on 10.9.2020 notified 151 ‘District Mineral Foundation Trust’ and on 10.9.2021 notified 165 DMFs as ‘class of Authority’, in respect of the income arising to DMF.  Hence Total 316 District Mineral Foundation Trust have been notified as ‘class of Authority’ in respect of the income arising to DMF on account of contributions by lease holders to DMF as per the MMDR Act, interest on late payment of DMF contributions by miners and such other specified collections.

3-Oct-2019: Rajasthan to create pneumoconiosis fund with DMF money

Rajasthan has announced the creation of a Pneumoconiosis Fund, which will be majorly financed by money from the District Mineral Foundation (DMF). This Fund will be used to finance a comprehensive policy on the disease released by the Rajasthan government on October 3, 2019.

Pneumoconiosis, a lung disease, mostly affects workers who work in the mining and construction sectors and deal with soil, silica, coal dust and asbestos. The disease includes asbestosis, silicosis and coal workers' pneumoconiosis.

The aim of the policy is to streamline the strategy to deal with pneumoconiosis. For the first time, government is looking at a strong preventive mechanism and better assistance to the victims and their families.

The Fund will be operating under this department. It will include pension for patients and their families after the patient’s death and their inclusion in the state’s social security schemes, which will be over and above the compensation paid.

Rajasthan is one of the leading mining states of India, with a distinction of having more than 33,000 mine leases, the highest in the country. Most of these are sandstone mines and quarries.

It is also the state with a high prevalence of pneumoconiosis, including silicosis. According to data from the state silicosis portal, more than 55,000 cases of silicosis have been registered for medical verification across all of Rajasthan’s districts from 2016 till date.

According to a 2018 report by the Comptroller and Auditor General of India, the number of deaths due to silicosis had increased in Rajasthan from 1 in 2013-14 to 235 in 2016-17.

Various mine workers organisations and unions had been demanding a comprehensive framework to address the issue and provide due compensation to the patients over the last decade.

With the institution of DMF under the Mines and Minerals (Development and Regulation) Amendment Act, the state found the resources to address the issue comprehensively.

Non-profit DMF trusts have been established in every mining district of India to “work for the interest and benefit of people and areas affected by mining related operations”.

Earlier, the state government was just providing a compensation of Rs 4 lakh to the silicosis patient, of which Rs 1 lakh was paid to him / her and Rs 3 lakh to the family after the patient’s death.

This was paid through the Rajasthan Environmental Health Administration Board (REHAB), constituted under the Rajasthan Environment and Health Cess Rules, 2008.

After DMF was instituted, REHAB was discontinued. The compensation was revised to Rs 5 lakh (Rs 2 lakh to the patient and Rs 3 lakh to the family after the patient’s death).

DMF will be one of the biggest components of the Pneumoconiosis Fund. It will also bring in convergence of other available funds such as Building and Other Construction Workers (BOCW) Welfare Fund, the state budget, and Corporate Social Responsibility (CSR).

The state level fund has been created so that pneumoconiosis patients can be helped even in districts where DMF funds are not substantial. In Rajasthan, districts like Bhilwara, Rajsamand, Udaipur, Chittorgarh and Ajmer have a sizeable DMF accrual each year ranging from Rs 250 crore to Rs 100 crore.

Prevalence of pneumoconiosis, however, reaches beyond these districts to others such as Bharatpur, Dholpur, Sirohi and Karauli, where massive quarrying activity is ongoing. These districts, in fact, report the highest number of cases along with Bhilwara and Ajmer.

DMF funds were already being used at the district level for compensation to silicosis patients. However, permissions from the governing body were required each time a case had to be added. Also, there are other districts where DMF funds are not available. Hence, Rajasthan is creating a state fund where different resources will be converged and disbursement can be made as required.

The proportion of contribution from various funds will be decided in the coming days.

Prevention and rehabilitation: The policy recognizes prevention as a major focus because pneumoconiosis, once contracted, is a terminal illness. For this, all mines and industries having dust hazards will be registered and notified as hazardous and brought under a tight regulatory framework to ensure protective equipment and dust suppression measures.

For early detection of cases, training of health workers and doctors, placing better screening systems at health centres will be ensured. So far, most of the silicosis cases were given treatment for tuberculosis, leading to eventual detection in advanced stages. If early detection is ensured, the chances of survival are good.

The policy also looks at a comprehensive patient rehabilitation and pension for patients and their families. It introduces pension for patients and after their passing, to their families irrespective of income criteria. It also calls for creating livelihood opportunities for silicosis patients and their kin.