District Mineral Foundations (DMFs)

GS III-ENVIRONMENT

Context

As of 2023, District Mineral Foundations (DMFs) have been established in 644 districts across 23 states in India. These foundations function under Section 9B of the Mines and Minerals (Development and Regulation) Amendment Act, 2015.

What are District Mineral Foundations (DMFs)?

DMFs are non-profit trusts formed by State Governments in districts impacted by mining activities. Their primary purpose is to channel resources toward the welfare of communities affected by mining operations.

Key Features of DMFs

• Each district has a separate, non-lapsable fund dedicated to developmental activities.
• Mining companies contribute a fixed percentage of their royalty payments to DMFs:
  • 30% for leases granted before 2015.
  • 10% for leases allocated through the auction process post-2015.
• The State Government holds jurisdiction over the structure, functioning, and fund utilization of DMFs.
• While State Governments regulate DMFs, the Central Government can provide directives on fund management and implementation.
• The funds collected under DMFs are used to implement the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), which aims to improve health, education, infrastructure, and environmental conditions in mining-affected regions.