District Mineral Foundation

A District Mineral Foundation (DMF) is responsible for implementing the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and other schemes in areas where mining is carried out.

A solid grasp of this topic is essential for individuals preparing for the upcoming IAS Exam. This article provides a detailed insight to help competitive exam aspirants develop thorough knowledge on the same.

Latest Updates Regarding District Mineral Foundation:

In current affairs, the Indian Central Government has made a new addition to the existing MMDR (Mines and Minerals (Development and Regulation)) Amendment Bill in 2021.

This bill instructs the states to use around 60% of their DMF funds for important sectors, such as drinking water and education, and the remaining 40% for cowshed development, energy and physical infrastructure.

A lot of schemes and initiatives are taken up by the government for the social and economic development of the country. Candidates can get updated with the comprehensive List of Government Schemes in India at the linked article.

What is the District Mineral Foundation?

DMFs are statutory authorities that a State Government sets up in districts affected by mining.

These bodies get their legality from Section 9B under the Mines and Minerals (Development and Regulation) Act, 1957 and its amendment in 2015. In fact, DMFs were instituted on 16th September, 2015.

The State Government can establish a DMF as a trust or non-profit body, and contributions from miners fund a DMF.

Visit the linked article to read about Mines Minerals development Regulation Amendment Act 2015.

Objectives of a District Mineral Foundation in India

The primary goal of a DMF is to work for the welfare of those areas and individuals that have been impacted by mining, as per the state’s prescription.

The State Government believes that tribals and other poor residents also have the right to benefit from the extraction of natural resources in their localities.

Interested candidates may also read about:

PM-KISAN (Pradhan Mantri Kisan Samman Nidhi) Scheme Pradhan Mantri Kaushal Vikas Yojana
Prime Minister Jeevan Jyoti Bima Yojana Prime Minister’s Citizen Assistance and Relief in Emergency Situation (PM CARES)
Pradhan Mantri Suraksha Bima Yojana Pradhan Mantri Shram Yogi Maan-Dhan

Composition of District Mineral Foundation

A DMF will comprise a Board of Trustees with the following members –

  • Revenue Divisional Commissioner or Collector who will act as the Chairperson (to be finalised by the State Government).
  • Collector, provided he is not the Chairperson.
  • Additional District Magistrate and District Level Officers of the following departments will be ex-officio members.
    1. Steel and Mines
    2. Forest and Environment
    3. Rural Development
    4. Works
    5. ST and SC Development
    6. Health and Family Welfare Departments, and of such other Departments as the government sees fit to include.
  • The District Collector will be the Managing Trustee.
  • Members of Lok Sabha and State Legislative Assembly in whose constituency any major mineral concession exists are also invited to be ex-officio members.
  • The State Government will nominate one member of the Zilla Parishad as an ex officio member in the district where there exists any mineral concession.
  • The State Government will nominate up to 3 members of Urban Local Bodies or Panchayati Raj Institutions from those areas where major mineral concessions exist.
  • The Chairperson may include such other officials to the Board meetings, as he may deem fit.
  • The quorum for this Board will comprise 50% of its members.
  • The Board should meet for a minimum of two times in a financial year.

District Mineral Foundation and the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)

A DMF will also implement the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). It will use the funds it has accrued to enact this scheme.

Some objectives of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) are:

  • It aims to execute various programs and schemes for the welfare of those persons in mining-affected areas. PMKKKY will create these schemes to complement existing programs that any State or Central government runs.
  • To minimise the negative impact of mining on
    1. Environment
    2. Health
    3. Socio-economic status of people residing in these mining districts.
  • To ensure the long-term livelihood of the persons who live in these mining areas.

Although this is the DMF’s mandate, it has failed to provide a livelihood to the people. The table below shows how much of the total funds have been kept aside for livelihood and skill development.

Table 1: Allocation of DMF Funds for Skill Development and Livelihood in Top Mining States

State Total DMF Accrual

(Rs. Crore)

Allocation for Livelihood and Skill Development

(Rs. Crore)

Odisha 9,772 196.0
Jharkhand 5,305 0
Chhattisgarh 5,115 456.3
Rajasthan 3,628 0
Madhya Pradesh 2,938 No information available
Telangana 2,790 80.0
Karnataka 1,885 62.0
Maharashtra 1,791 48.0

The District Mineral Foundation has the highest DMF collection in Odisha, Jharkhand, Chhattisgarh, Rajasthan, and Telangana. Moreover, income generation for the local people is a very essential aspect of the DMF.

The above overview on DMF and its working will help individuals crack any Current Affairs Quiz with ease. However, you can turn to extensive study materials from subject-matter experts to maximise your preparation for the IAS Exam.

Other Related Links
IAS Salary IAS Officer
UPSC Syllabus UPSC Age Limit
IAS Study Material IAS Prelims: UPSC MCQs On Government Schemes

Frequently Asked Questions


What contributions do mining leaseholders have to pay?

If a miner has a lease as on or after 12th January 2015, he will have to pay, in addition to the royalty, a 10% of the royalty contribution to the DMF.
If he has a licence from before this date, he will have to pay 30% of the royalty as a contribution to the DMF.


How many DMFs are set up in the country?

There are presently DMFs in 572 districts, according to the Ministry of Mines.


How much money have these DMFs accrued?

In total, these DMFs have accrued Rs. 40,000 crores.


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