District Mineral Foundation (DMF) Scheme

Why in News?

• Recently, Odisha’s Keonjhar district is India’s highest recipient of funds under the District Mineral Foundation (DMF) scheme, and has spent ₹3,000 crore under the scheme over the past seven years.

Highlights

• As per the Mine and Minerals Development Regulation (Amendment) Act, 2015, in every district affected by mining-related operations, the state government shall, by notification, establish a trust as a non-profit body to be called the District Mineral Foundation
• Funds every mining lease holder of will pay a fraction of royalty, not exceeding one-third of the royalty, to the DMF as per rates prescribed by Central Government.
• This fund will be used for welfare of the people affected in the mining affected areas.
• In Keonjhar, the total DMF fund collection has touched an astounding ₹8,840 crore, the highest for any district in India
• The idea behind the contribution is that local mining-affected communities, mostly tribal and among the poorest in the country, also have the right to benefit from natural resources extracted from where they live.
• The functioning of the DMF trusts and the fund use governed by states’ DMF Rules incorporate the mandates of a central guideline, Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).