District Mineral Foundation

More on the News

• Odisha’s Keonjhar district is India’s highest recipient of funds under the District Mineral Foundation (DMF) scheme.
• The district has spent Rs 3,000 crore under the scheme over the past seven years, but the district has only recently finalized who the real beneficiaries are.

What are District Mineral Foundations (DMFs)?

• About: DMFs are non-profit trusts that are formed under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015.
  • They are established by state governments in every district affected by mining-related operations.
  • The idea behind setting up of DMFs is that local mining-affected communities, mostly tribal and among the poorest in the country, also have the right to benefit from natural resources extracted from where they live.
• Objectives of DMF:
  • To work in the interest and benefits of persons and areas affected by mining-related operations in a manner as may be prescribed by the State Government.
  • A DMF is responsible for implementing the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and other schemes in areas where mining is carried out.

• DMF Funds Contribution:
  • In case of all mining leases executed before 12th January, 2015 (the date of coming into force of the Amendment Act) miners will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs.
  • Where mining leases are granted after 12.01.2015, the rate of contribution would be 10% of the royalty payable.
• Jurisdiction: The operation of DMFs falls under the jurisdiction of the relevant State Government. The fund for DMF is collected at the district level.
• Composition and functions: Composition and Functions of the DMF is prescribed by the State Governments taking guidelines from the following:
  • Article 244 of Indian Constitution
  • Fifth and sixth schedules
  • Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996
  • The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
• Governing council: The DMF to have a Governing Council comprising:
  • District magistrate as the chairperson
  • Five community representatives from areas affected by mining, nominated by DMF Members
  • Two state government representatives, nominated by the state government
  • One representative from mining companies contributing to the DMF, nominated by the district mining association
  • District mining officer
  • Secretary, who will be the chief executive officer (CEO) of the DMF, and who will be appointed by the Governing Council
• Beneficiaries under DMF scheme: These primarily include people who have lost their land rights (including legal, occupational, usufruct and traditional rights) and livelihood (including forest based livelihood) due to mining.

About the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

• Launch: The Ministry of Mines launched the scheme in 2015 for the welfare of areas and people affected by mining-related operations, using the funds generated by DMFs.
• Objectives:
  • To implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government.
  • To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts.
  • To ensure long-term sustainable livelihoods for the affected people in mining areas.
• Fund Utilization :
  • At least 60% the fund will be utilized for “High Priority Areas” like Drinking water supply, Environment preservation & pollution control measure, Health care, Education, etc.
  • Rest of the fund will be utilized for “Other Priority Areas”, such as Physical infrastructure, Irrigation, Energy & watershed development and Measures for enhancing environmental quality.

Sharing is caring!