District Mineral Foundation

District Mineral Foundations (DMFs) are statutory bodies established by the State Governments in India by notification under section 9B of the Mines and Minerals (Development and Regulation) Act, 1957. This section was introduced through the Mines and Minerals (Development and Regulation) Amendment Act, 2015 which came into force on 12 January 2015.

Establishment

As per the 2015 amendment, every State Government is required to establish a DMF through a gazette notification in every district affected by mining operations. The DMF is set up as a trust or non-profit body.

Objectives

The main objectives of DMFs are:

• Work for the interest and benefit of persons and areas affected by mining-related operations
• Minimize or mitigate the adverse impacts during and after mining on the environment
• Ensure long-term sustainable livelihoods for affected persons

The specific functions are prescribed by the respective State Governments in line with relevant constitutional provisions and laws related to local governance and rights of tribal groups.

Composition and Functions

The composition and functions of DMFs are outlined by State Governments based on guidelines derived from:

• Article 244 of the Indian Constitution on administration of scheduled areas
• Fifth and Sixth schedules of the Constitution on administration of tribal areas
• Provisions of the Panchayats (Extension to Scheduled Areas) Act, 1996
• The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006

Funding

As per rules framed by the Central Government, every mining lease holder pays a percentage of the royalty, up to one-third, to the DMF fund. This fund is utilized for the welfare and development of people affected by mining activities in that district.

The DMF thus constitutes an important decentralized body aimed at improving the living standards in mining-affected regions through sustainable development planning.