District Mineral Foundations Latest News

The Allahabad High Court recently held that the formation of District Mineral Foundations is  beneficial legislation and must be construed liberally for those who are affected negatively by mining operations.

About District Mineral Foundations 

• DMFs are statutory bodies in India established by the state governments by notification. 
• They derive their legal status from Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, as amended on 26 March 2015 as the Mines and Minerals (Development and Regulation) Amendment Act, 2015.
• In any district affected by mining-related operations, the State Government shall, by notification, establish a trust, as a non-profit body, to be called the DMF.
• Purpose: To work in the interest and benefit of persons and areas affected by mining-related operations in a manner as may be prescribed by the respective State Government.
• Jurisdiction:
  • The operation of DMFs falls under the jurisdiction of the relevant State Government. 
  • Composition and functions of the DMF are prescribed by the State Governments.
• Funding: It is funded through the contributions from the holders of major or minor mineral concessions in the district, as may be prescribed by the Central or State Government.
• The Central Government has notified the rates of contribution payable by miners to the DMFs.
  • In the case of all mining leases executed before 12th January, 2015, miners will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs. 
  • If mining leases are granted after 12.01.2015, the rate of contribution would be 10% of the royalty payable.
• The Fund available with the Trust shall be used for:
  • The overall development of the area affected by mining-related operations in the District in accordance with the Annual Action Plan prepared by the Trustees of the Foundation for the purpose.
  • Creation of local infrastructure for socio-economic purposes.
  • Providing, maintaining, or upgrading community assets and services for the local population in the area affected by mining-related operations.
  • Organising or conducting training programmes to skill development and capacity building for creating employment and self-employment capabilities.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

• The Ministry of Mines launched PMKKKY in 2015 for the welfare of areas and people affected by mining-related operations, using the funds generated by DMFs.
• Objectives:
  • To implement various developmental and welfare projects in mining-affected areas, complementing the existing ongoing schemes of the 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.
• Utilisation of Funds:
  • At least 60% of PMKKKY funds to be utilized for high-priority areas such as Drinking water supply, Health care, Education, Environment preservation, etc.
  • Up to 40% of the PMKKKY to be utilized for other priority areas such as Physical infrastructure, Irrigation, Energy, and Watershed Development, etc.

Source: LL

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