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District mineral foundation (DMF) funds

Topics Covered: Statutory, regulatory and various quasi-judicial bodies.

District mineral foundation (DMF) funds

What to study?

For Prelims: About DMFs, composition, funds and jurisdiction, about PMKKKY, pneumoconiosis.

For Mains: reforms needed.

Context: Union finance minister Nirmala Sitharaman said state governments should use district mineral foundation (DMF) funds for response and preparedness to fight the novel coronavirus disease (COVID-19) pandemic.

DMF funds may be used to supplement and augment healthcare facilities, screening and testing requirements and any other resources that might be required.

About DMFs:

DMFs were instituted under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015.

They are non-profit trusts to work for the interest and benefit of persons and areas affected by mining-related operations.

Objective: 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 fund is collected at the district level. There are certain high-priority areas identified in all states’ DMF rules, where at least 60 per cent of the fund must be used. These include vital and pressing concerns, including healthcare.

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:

  1. To implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government.
  2. To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts.
  3. To ensure long-term sustainable livelihoods for the affected people in mining areas.

Insta Link:

Prelims Link:

  1. Funding of DMFs.
  2. What are High priority areas under DMF?
  3. How many states in India have setup DMFs?
  4. Who decides about setting up of DMFs?
  5. Objectives of PMKKKY.

Mains Link:

Write a note on PMKKKY.

Sources: pib.