Context:
A first-of-its-kind analysis of the District Mineral Foundations (DMF) shows that despite collecting about ₹1-lakh crore in the past decade, more than half the funds is unspent.
District Mineral Foundation (DMF):
- Establishment – Under the Mine and Minerals Development Regulation (Amendment) Act, 2015, states must create non-profit trusts called District Mineral Foundations in mining-affected districts.
- Purpose – To support the welfare of communities impacted by mining operations, ensuring they benefit from the natural resources in their areas.
- Source of DMF funds – Mining lease holders contribute a fraction of royalties (up to 1/3rd ), as per rates set by the Central Government.
- Usage – Funds are allocated for developmental and welfare programs in mining-affected regions.
- Governance – DMF operations and fund utilization are overseen by States’ DMF Rules, aligned with the central directive under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):
- Launched in – 2015
- Based on – Mines and Minerals (Development and Regulation) Act, 1957
- Ministry – Ministry of Mines
- Aim – To ensure welfare of areas and people affected by mining-related operations
- Key Objectives –
- To implement various developmental and welfare projects by District Mineral Foundations (DMFs) in mining affected areas
- To minimize the adverse impacts during mining
- To ensure long-term sustainable livelihoods for the affected people
- Funded by – District Mineral Foundations (DMF)
- At least 60% of PMKKKY funds must be utilized for high-priority sectors such as drinking water supply, healthcare, and education
- Other features –
- Special provisions for scheduled castes
- Provides yearly audit of the accounts of the DMFs
Source: TH
Previous Year Question
What is/are the purpose/purposes of ‘District Mineral Foundations’ in India?
1. Promoting mineral exploration activities in mineral-rich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licences for mineral exploration
Select the correct answer using the code given below.
[UPSC Civil Services Exam – 2016 Prelims]
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3
Answer: (b)
Explanation:
It does not promote mineral exploration activities in mineral-rich districts. It does not authorize states to issue a licence for mineral exploration.