District Mineral Foundation (DMF)

 

District Mineral Foundation (DMF)

Overview:

In a written reply in Rajya Sabha, the Coal and Mines Minister recently said the District Mineral Foundation (DMF) has been set up in 644 districts in 23 states.

About:

Q     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.

DMF Funds:



Q     Funds every mining lease holder of will pay a fraction of royalty, not exceeding one-third of the royalty, to the DMF as per rates prescribed by Central Government.

Q     This fund will be used for welfare of the people affected in the mining affected areas.

Q     In Keonjhar, the total DMF fund collection has touched an astounding ₹8,840 crore, the highest for any district in India.

Objective:

Q     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.

Functioning:

Q     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).

What is PMKKY?

Q     The scheme seeks to carry out various developmental and welfare projects/programs in mining-affected areas. These projects/ programs will supplement existing ongoing schemes/projects of the State and Central Government;

Q     The scheme also aims to minimize/mitigate the adverse impacts of mining, both during and after the operations, on the environment, health, and socio-economics of people in mining districts; and

Q     The PMKKKY further strives to ensure long-term sustainable livelihoods for the affected people in mining areas.

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