DMFs to ensure welfare of People in Mining Areas

The Mines and Minerals (Development and Regulation) Act, 1957 was amended through the MMDR Amendment Act, 2015 which was published in the Gazette of India on 27th March, 2015. Section 9B of the MMDR Amendment Act, 2015, provides for setting up of District Mineral Foundation (DMF) in every district affected by mining activities.

The funds of DMF are to flow as payment from concession holders at a specified rate. Funds so collected are to be used to work for the interest and benefit of persons, and areas, affected by mining related operations. State Governments are empowered to frame rules for the manner in which DMF shall work for the interest and benefit of persons and areas affected by mining as also the composition and functions of DMF.

To facilitate synergy in implementation of DMF scheme across the States, the Government of India has also launched Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). The objective of PMKKKY scheme is (a) to implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government; (b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.

The DMFs will implement the PMKKKY scheme using the funds generated by the contribution to it. The Central Government has issued a directive to the State Governments, under Section 20A of the MMDR Act, 1957, laying down the guidelines for implementation of PMKKKY and directing the States to incorporate the same in the rules framed by them for the DMFs. The DMFs are deemed to have come into existence with effect from 12.01.2015. Hence there are no figures in respect of funds allocated, released and spent by the DMFs during each of the last three years. The detail of these amounts is not maintained centrally.

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