District Mineral Foundation Funds Transforming Lives of Mining Affected Areas / People

District Mineral Foundations (DMFs) have been set up in as many as 644 districts of 23 states/UTs which have DMF rules in place. Seventeen states/UTs of the country have already formed DMF in all the districts, by August this year. Such states are: Andhra Pradesh, Bihar, Himachal Pradesh, Kerala, Uttarakhand, Uttar Pradesh, Punjab, Haryana, Chhattisgarh, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Rajasthan, Goa, Assam, and Jammu & Kashmir.

As per the latest statistics of the Ministry of Mines, the total amount of funds collected under DMF comes to Rs.82370.79 crore and the amount utilized stands at 45150.21 crore (August, 2023). High priority work (60%) under DMFs is centered around sectors like education, drinking water supply, health, welfare of women and children, environment preservation & pollution control measures, skill development, sanitation etc. At the same time, under Other Priority work (40%), the projects mainly belong to sectors like physical infrastructure, irrigation, energy, water shed development etc.

Through an order issued by the Mines Ministry in June last year, state Govts. /UTs were directed to prepare a five year perspective plan taking into account current balance available and likely accrual to the DMF over the period of five years. This plan shall be based on findings and gaps as identified through the baseline survey or assessment undertaken by universities / renowned organizations/agencies or any department. In April, 2021 the Centre issued orders to the states to include MPs, MLAs and MLCs in the governing council of the DMF, keeping in mind larger public interest. Further, in July the same year another order has been issued to ensure that funds available under DMF shall not be transferred / spent to any other fund or purposes other than as prescribed under Mines and Minerals (Development and Regulation) Act.

The objective of the DMF, operating as a non-profit body, is to work for the interest and benefit of the persons and areas affected by mining related activities in such manner as may be prescribed by the state government. The Government launched Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY) to be implemented by the DMFs of the respective fields to ameliorate the condition of mining affected persons and create a win-win situation for the stakeholders.

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BY/RKP