District Mineral Foundations

About DMFs

Setting up of District Mineral Foundations (DMFs) in all districts in the country affected by mining related operations was mandated through the Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015.
Under the Act, mining lease holders are required to make contributions to DMF funds. This contribution is equivalent to a certain percentage of the royalty paid by them. PMKKKY was launched in 2015 to implement the projects approved by DMFs.
District Mineral Foundation is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from miners.
Its manner of operation comes under the jurisdiction of the relevant State Government.
In case of all mining leases executed before 12th January, 2015 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.

Why in News?

The Government has collected over 74 thousand 830 crore rupees under District Mineral Foundation till January 2023.
District Mineral Foundations had been set up in 626 districts in 23 States.

Related Information

Pradhan Mantri Khanij Kshetra Kalyan Yojana

The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) has been launched by the Government which will be implemented by DMFs of the respective districts using the funds accruing to the DMF.
At least 60% of PMKKKY funds will be utilized for high priority areas like: (i) drinking water supply; (ii) environment preservation and pollution control measures; (iii) health care (iv)education; (v) welfare of women and children; (vi) welfare of aged and disabled people; (vii) skill development; and (viii) Sanitation.
The rest of the funds will be utilized undertaking works like for: (i) physical infrastructure; (ii) irrigation; (iii) energy and watershed development; and (iv) any other measures for enhancing environmental quality in mining districts.

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