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District mineral foundations

Topics Covered:

  1. Statutory, regulatory and various quasi-judicial bodies.
  2. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.


District mineral foundations


What to Study?

  • For Prelims: About DMFs, composition, funds and jurisdiction, about PMKKKY.
  • For Mains: Why they should be placed under respective planning departments of the state, significance, concerns and challenges.


Context: Chhattisgarh has revised the composition of the governing council of District Mineral Foundation Trusts (DMFTs), and placed the minister in-charge of the respective districts at the head of the governing bodies. Earlier, these were headed by the District Collector (DC).

The change has been brought about by introducing amendments to the Chhattisgarh District Mineral Foundation Trust Rules (2015), through a notification.



The move follows the Chhattisgarh government’s observation that DMFTs have not been functioning optimally to benefit mining-affected people and the worst affected areas. The decision has been taken to improve participation of people through the representatives selected by them. This is to ensure that the needs of mining-affected areas are reflected well. The effort is to ensure that DMFs work in an accountable manner.

DMFTs which have been set up in various mining districts, including all districts of Chhattisgarh, have a two-tier administrative structure, a Governing Council (GC) and a Managing Committee (MC) with differential responsibilities. The idea of a two-tier structure was to have appropriate checks and balances in decision-making.

Both the GC and the MC were being headed by the DC. The other members of these bodies predominantly comprise officials and elected representatives. There is practically no representation of mining-affected people in the body to have their voice and representation in decision-making.

In order to have a more balanced structure, the Chhattisgarh government has now removed the DC as chairperson of the GC. Also, all members of legislative assembly (MLA) of the concerned mining district have been made GC members.


About DMFs:

DMFs were instituted under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015 as non-profit trusts to work for the interest and benefit of persons and areas affected by mining-related operations.

The objective of District Mineral Foundation is to work for the interest of the benefit of the persons and areas affected mining related operations in such manner as may be prescribed by the State Government.

Jurisdiction: Its manner of operation comes under the jurisdiction of the relevant State Government.


The various state DMF rules and the Pradhan Mantri Khanij Khestra Kalyan Yojana (PMKKKY) guidelines stipulate some “high priority” issues for DMFs, including:

  1. Drinking water.
  2. Health
  3. Women and child welfare.
  4. Education
  5. Livelihood and skill development.
  6. Welfare of aged and disabled.
  7. Sanitation


Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):

The programme is meant to provide for the welfare of areas and people affected by mining related operations, using the funds generated by District Mineral Foundations (DMFs).


Objectives of the scheme:

  • To implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of 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.


Sources: down to earth.