E-Paper
Govt collected ₹1 lakh crore in DMF funds since 2015: Mines minister tells Lok Sabha
DMFs are funded from a share of royalty paid by mining companies and varies based on the type of mineral they extract and when they were granted their mining lease.
The central government has collected ₹1,09,423 crore from across the country under the District Mineral Foundations (DMFs) since 2015, of which Rs.91,514 crore, or 83%, have been allocated to various projects sanctioned under DMFs, the ministry of mines informed the Lok Sabha on Wednesday.
Minister of mines G Kishan Reddy said the DMF operates as a non-lapsable fund and unspent balances continue to be part of the cumulative fund available with each DMF Trust; he also provided details of DMF funds disbursed state-wise.
Reddy was responding to questions raised by Shiv Sena MP Shrirang Appa Chandu Barne on: 1. the total funds accrued in all DMFs across the country till date and the corresponding amount utilised, state-wise particularly in Maharashtra; 2. the percentage of unutilised funds and the primary reasons identified for this significant underutilisation; 3. whether the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines mandate specific percentages for high-priority sectors (e.g. drinking water, healthcare, education), among others.
Under PMKKKY, a welfare scheme aimed at improving the lives of people and areas affected by mining activities, at least 70% of DMF funds must be utilised in high-priority sectors such as drinking water, healthcare, education, etc. and up to 30% of DMF funds should be utilised under other-priority sectors, i.e., physical infrastructure, irrigation and energy and watershed development. Till date, eight states have incorporated the PMKKKY guidelines, 2024, in their state DMF rules.
Odisha has collected ₹31,323.53 crore as DMF so far followed by ₹15,402.43 crore by Chhattisgarh and ₹13,791.40 crore by Jharkhand, according to the response.
“The guidelines also provide that the account of the DMF shall be audited by the Comptroller and Auditor General (CAG) as per schedule decided by CAG. Further, as per the Guidelines, a State Level Monitoring Committee (SLMC) shall be constituted at the State level under the chairpersonship of the Chief Secretary to monitor the performance of DMFs and compliance of transparency norms, audit and annual report of DMFs,” Reddy said.
Through the amendment in Mines & Minerals (Development & Regulation) (MMDR) Act, in 2015, the Centre has made provisions for the establishment of DMF 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, with the power of the state government to prescribe its composition and functions.
The object of the DMF is to benefit areas affected by mining related operations in such a manner as may be prescribed by the state government. This also includes mitigating the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts.
So far, DMFs have been set up in 645 districts in 23 states in the country that have framed DMF rules. DMFs are funded from a share of royalty paid by mining companies and varies based on the type of mineral they extract and when they were granted their mining lease.
