Promulgation of District Mineral Foundation Trust Rules | 01 Oct 2025

Why in News?

The Uttar Pradesh Cabinet has given approval for the promulgation of the Uttar Pradesh District Mineral Foundation Trust (Third Amendment) Rules, 2025, in line with the revised guidelines of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) issued in January 2024 by the Ministry of Mines.

Key Points

  • Objective: The amendment aims to benefit individuals in areas directly affected by mining operations by utilising District Mineral Foundation (DMF) funds for community development and welfare activities.
  • Funds Allocation: 70% of DMF funds will be exclusively allocated for drinking water supply, environmental protection, health care, education, and skill development in mining-affected areas.
    • The remaining 30% of funds can be utilised for physical infrastructure, irrigation, alternative energy sources, etc.
  • Financial Impact: The promulgation of the revised rules will not impose any financial burden on the state government.
  • Monitoring Systems: A state-level monitoring committee will be set up, chaired by the Chief Secretary, to oversee the implementation of works under PMKKKY and ensure effective use of the DMF funds.

District Mineral Foundation (DMF)

  • About: As per the Mines 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.
  • DMF Funds: Each mining leaseholder will pay a portion of the royalty, not exceeding one-third of the total royalty, to the DMF, in accordance with the rates prescribed by the Central Government.
  • Functioning: The functioning of the DMF Trusts and the utilisation of funds, governed by the respective States’ DMF Rules, incorporates the mandates of the central guideline, PMKKKY.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

  • Nodal Ministry: Launched in 2025, PMKKKY is a scheme by the Ministry of Mines for the welfare of people & affected areas by using the funds accrued under the District Mineral Foundation (DMF). 
  • Objectives: Implement welfare projects in mining areas to complement government schemes, mitigate adverse impacts, and ensure sustainable livelihoods.
  • PMKKKY 2024 Guidelines: PMKKKY 2024 mandates that at least 70% of DMF funds must be spent on High Priority Sectors, which directly impact the well-being of mining-affected communities.