New Delhi: The Union Ministry of Mines has urged District Collectors across India to ensure the timely execution of projects under the District Mineral Foundation (DMF) scheme and address grievances of communities impacted by mining operations. The directive was issued during a National DMF Workshop held in the capital, attended by key stakeholders from the central and state governments.
Addressing the gathering, Mines Secretary VL Kantha Rao emphasized the critical role of District Collectors, who serve as Chairpersons of both the Governing Council and the Managing Committee of DMFs in their respective districts.
“There is a lot of demand from all quarters about the role of collectors in such a big fund… but the government has been very clear that the collector will ensure that the works are executed in a timely manner for the benefit of people who are affected by mining,” Rao said.
DMF: A Key Pillar for Mining-Affected Regions
The District Mineral Foundation, established in 645 districts across 23 states, is a non-profit statutory fund created under the Mines and Minerals (Development and Regulation) Act, 1957, aimed at improving the quality of life in mining-affected areas. It draws its funds from a portion of royalties paid by mining companies.
Grievances Mount Over Fund Misuse and Non-Utilisation
The Mines Secretary acknowledged multiple complaints received by the ministry regarding DMF functioning. These include non-expenditure, delays in project execution, and lack of community participation.
“In one state, the expenditure is zero. So there are all kinds of complaints. We need to make sure that these are addressed,” he warned, without naming the state.
Such lapses risk undermining the core purpose of the DMF—supporting livelihoods, healthcare, education, drinking water, and infrastructure in resource-rich but underserved districts.
DMF Expenditure Must Align with PMKKKY Guidelines: Minister
Union Minister for Coal and Mines G. Kishan Reddy, who also addressed the workshop, stressed that DMF funds should be strictly used in accordance with Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines.
Launched to ensure sustainable and inclusive development in mining zones, PMKKKY mandates that 60% of DMF funds be spent on high-priority areas such as health, education, skill development, drinking water, and sanitation.
“The DMF fund is a lifeline for people affected by mining. It must be used responsibly and transparently through PMKKKY,” said Minister Reddy.
Need for Monitoring and Capacity Building
Officials stressed the need for regular monitoring, audit mechanisms, and capacity building at the district level to ensure transparency and efficiency in fund deployment. The Centre has also been exploring digital platforms for real-time monitoring of DMF-funded projects.
With significant amounts of unutilised funds lying idle in several districts, the Centre’s intervention is expected to expedite project implementation and ensure that mining-affected populations see tangible benefits.
