District Management Fund

Government has taken complete control of the District Mineral Foundation (DMF) funds, thus negating states’ right to sanction any expenditure out of the funds accrued from mandatory contribution from mining lease holders.

Need

• According to the Ministry of Mines “there are instances where a part of the funds of the DMF are being transferred to the treasury/consolidated fund of the state or state level funds,” thereby defeating the very purpose of the creation of the DMF.
• The Centre also pointed out that the transfer of any part of the fund of DMF to any state level entity for its utilization is violation of the provision of section 9B of the Act.

About District Mineral Foundation (DMF) Funds

• It was mandated through the Mines and Minerals (Development & Regulation) Amendment Act, (MMDRA) 2015 and is funded through the contributions from miners.
• It is set up as a non-profit trust in all mining districts of India, and its objective is to promote development of people and areas affected by mining, recognizing them as partners in natural resource-led development.