District Mineral Foundation Gadchiroli

District Mineral Foundation

Through the amendment in Mines & Minerals (Development & Regulation) (MMDR) Act, in 2015, Government of India has made provision for establishment of District Mineral Foundation in all the districts affected by mining. Accordingly, Section 9(B) of the MMDR Act provides for the establishment of DMF as a non-profit body, object of DMF, and the power of State Government to prescribe the composition and functions of District Mineral Foundation.

The object of the District Mineral Foundation is to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government. So far, DMFs have been set up in 645 districts in 23 States in the country which have framed DMF rules.

In any 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.

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

The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government.

The State Government while making rules under sub-sections (2) and (3) shall be guided by the provisions contained in article 244 read with Fifth and Sixth Schedules to the Constitution relating to administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.

The holder of a mining lease or a prospecting licence-cum-mining lease granted on or after the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount which is equivalent to such percentage of the royalty paid in terms of the Second Schedule, not exceeding one-third of such royalty, as may be prescribed by the Central Government.

The holder of a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount not exceeding the royalty paid in terms of the Second Schedule in such manner and subject to the categorization of the mining leases and the amounts payable by the various categories of lease holders, as may be prescribed by the Central Government.

Pradhan Mantri Khanij Kshetra Kalyan Yojana ( PMKKKY )

Central Government on a careful consideration of the matter, opined that the national interest requires that all District Mineral Foundations should implement at development programme for the mining affected areas that includes as certain minimum provisions for the social and infrastructure needs of the population and area, and the Central Government has, accordingly, framed the Pradhan Mantri Khanij Kshetra Kalyan Yojana to be implemented by the District Mineral foundations from the funds accruing to them in terms of the MMDR Act, 1957. Further in January 2024, the Central Government issued the revised PMKKKY guidelines.

Accordingly, Central Government in exercise of the powers conferred under section 20A of the MMDR Act, 1957, in the national interest directed the concerned State Governments to incorporate the PMKKKY into the rules framed by them for the DMF and to implement the said Scheme.

The overall objective of PMKKKY scheme will be

 (a) to implement various developmental and welfare projects/programs in mining affected areas, and these projects/ programs will be complementing the existing ongoing schemes/projects of State and Central Government; 

(b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and

 (c) to ensure long-term sustainable livelihoods for the affected people in mining areas.

PMKKKY provides for utilization of at least 70% of the funds for high priority areas like:

• drinking water supply;
•  environment preservation and pollution control measures; 
• health care;
• education;
• welfare of women and children;
• welfare of aged and disabled people;
• skill development; and
•  sanitation
•  housing, 
• agriculture, and
•  animal husbandry.

 While, up to 30% of the funds shall be utilized for other priority areas

• physical infrastructure;
• irrigation; 
• energy and watershed development; and
•  any other measures for enhancing environmental quality in mining district.