Context: 

In a written reply in Rajya Sabha, the Union Minister of Coal and Mines recently gave information about the funds collected and spent under DMFs across the country. 

More on the News 

• Till November 2024, a cumulative amount of ₹1.02 lakh crore has been collected in DMFs across the country, out of which ₹87,357.28 Cr. has been sanctioned for 3.60 lakh projects. 
• A total of 2.01 lakh projects have been completed and an amount of Rs.54,892 Cr. has been spent.

About the DMFs: 

DMFs are a non-profit trust set up by the State Governments in every district affected by mining-related operations.

It is established under Section 9(B) of the Mine and Minerals Development Regulation (Amendment) Act, 2015.

The objective of DMFs is to work for the interest of the persons and areas affected by mining-related operations in such manner as may be prescribed by the State Governments.

It is funded through the contributions from the holder of major or minor mineral concession in the district as may be prescribed by the Central or State Government.

• Mining lease holders are required to contribute 10% and 30% of the royalty (depending on the date of mining lease granted) to DMFs, in addition to the royalty paid to state governments. These funds are used for the welfare of communities affected by mining activities. 

The goal is to ensure that local communities, often tribal and among the poorest, benefit from the natural resources being extracted from their areas.

So far, DMFs have been set up in 645 districts in 23 States in the country which have framed DMF rules.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is implemented by the DMFs of the respective districts using the funds accruing to the DMF.

PMKKKY Scheme:

It was launched under the Ministry of Mines in 2015 to help areas and people affected by mining activities. The overall Objectives of the scheme are – 

• to implement various developmental and welfare projects/programs in mining-affected areas that support and complement existing state and central government programs.
• to minimize the harmful effects of mining on the environment, people’s health, and the economy in mining districts.
• to ensure long-term, sustainable sources of income for people living in mining areas.

PMKKKY Revised Guidelines for DMFs

• To ensure effective implementation of the PMKKKY scheme, the Central Government has issued revised PMKKKY guidelines in January, 2024. Some of the key features of these guidelines include – 
• At least 70% of DMF funds should be spent in areas directly affected by mining and on high-priority areas like Drinking Water, Environment Preservation and Pollution Control measures, Health Care, Education, Welfare of Women and Children, Welfare of aged and differently-abled, Skill Development and Livelihood generation, Sanitation, etc. 
• While up to 30% of the funds shall be utilized for other priority areas such as physical infrastructure, irrigation, energy and watershed development, etc. 
• Mandatory audit of DMF accounts by the Comptroller & Auditor General (C&AG).
• Inclusion of elected representatives (MPs, MLAs, MLCs) in the DMF Governing Council.
• establishment of State Level Monitoring Committee under the chairmanship of Chief Secretary.
• Gram Sabha and local bodies can help in preparing long-term plans for DMF fund utilization.
• Use of DMF funds in scheduled areas (tribal regions) shall be guided by constitutional provisions and laws as below:
• Article 244 and Schedules V & VI of the Constitution.
• Panchayats (Extension of Scheduled Areas) Act, 1996.
• Forest Rights Act, 2006 for tribal and forest-dwelling communities.