District Mineral Foundation Trust Funds

Why in News

Dhanbad (Jharkhand) Deputy Commissioner has ordered an audit and an impact assessment of utilisation of funds from the District Mineral Foundation Trust (DMFT) for the financial years 2017-2020.

Key Points

  • 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.

Pradhan Mantri Khanij Kshetra Kalyan Yojana

  • Nodal Ministry: PMKKKY is a scheme by the Ministry of Mines for the welfare of people & affected areas by using the funds accrued under District Mineral Foundation (DMF).
  • 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.
  • Implementation:
    • 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.

Source: IE