District Mineral Foundation (DMF) – UPSC Prelims

  • Statutory Provision: As per the Mine and Minerals Development Regulation (Amendment) Act, 2015, in every district affected by mining-related operations, the state government shall, by notification, establish a trust as a non-profit body to be called the District Mineral Foundation.
  • DMFT Funds: Mining companies contribute 10-30% on the royalty amount that they pay to the government to DMF Trust in the district they are operating in.
  • Objective: The idea behind the contribution 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.
  • Status: DMFs have been set-up in 572 districts of the country, with a cumulative accrual of more than Rs. 40,000 crore so far as per Ministry of Mines (MoM) data.
  • Linked with PMKKKY: The functioning of the DMF trusts and the fund use governed by states’ DMF Rules incorporate the mandates of a central guideline, Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) that specifies high priority areas of investments.

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