What Is DMF?
“District Mineral Foundation” means a statutory trust established as a non-profit body by the Government in all districts affected by mining or mining related operations, in accordance with Section 9B of the Mines and Minerals (Development and Regulation) Amendment Act, 2015. This amendment came into force from 12 January 2015.
The objective of District Mineral Foundation is to work for the interest and welfare of peoples residing in mining affected areas in such a manner as may be prescribed by the Central/State Government.
The objective and functioning of DMF are also guided by constitutional provisions as it relates to Fifth and Sixth Schedules for governing tribal areas, the provisions of the Panchayats (Extension to Scheduled Areas) Act (PESA), 1996, and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 – the Forest Rights Act (FRA).
Why was it established?
For years, mining has benefitted mining companies, individual miners and governments, not the communities living there. Because of mining, people are displaced from their land and suffer other negative consequences like break-up of the society and pollution, but are never adequately compensated. This is the reason for the poor socio-economic and environmental status of most mining affected districts.
Under which law is this recognized? What does the law say?
- DMF is recognized under India’s central mining law, the Mines and Minerals (Development and Regulation) Act (MMDR) of 1957, as amended in 2015. Section 9B of the MMDR Act gives specifications about DMFs u The objective of DMFs have been clearly spelt out in the Section 9B (2) of the MMDR Act (amended in 2015) as ‘to work for the interest and benefit of persons, and areas affected by mining-related operations’.
- The specific law concerning DMF in the state is the Jharkhand District Mineral Foundations Rules, 2016.
How and for what should DMF money be used?
This is the most crucial question. To channelize the funds properly, the Central government in September 2015 launched the Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY), a welfare scheme for mining-affected areas and people. It gave clear guidelines regarding where DMF money use is to be prioritized.
Collection of contribution to DMF fund:-
- Ten per cent of the royalty paid in terms of the second schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of1957) (herein referred to as the said Act) in respect of mining leases or, as the case may be, prospecting license-cum-mining lease granted on or after 12th January, 2015 ; and
- Thirty per cent of the royalty paid in terms of the second schedule to the said Act in respect of mining lease granted before 12th January, 2015. [as contained in Ministry of Coal, notification new Delhi, the 17th September, 2015, G.S.R. 715(E)]
- Every holder of a mining lease or a prospecting license –cum-Mining lease in respect of coal and lignite and sand for stowing shall, in addition to the royalty paid to the District Mineral Foundation of the district in which the mining operation are carried, an amount at the rate of
- Ten per cent of the royalty paid in terms of the second schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67of 1957) (Herein referred to as the said Act) in respect of mining lease or, as the case may be, prospecting license -cum- mining lease granted on or after 12th January, 2015 and
- Thirty percent of the royalty paid in terms of the Second Scheduled to the said Act in respect of mining lease granted before 12th January, 2015. [as contained in Ministry of Coal, notification new Delhi, the 20th October, 2015, G.S.R. 792(E)]
So what works must DMF do?
Utilization of Funds
Scope of PMKKKY
The PMKKKY may cover the activities listed below:
High priority areas-at least 60 % of PMKKKY funds to be utilized under these heads:
- Drinking water supply – centralized purification system, water treatment plants, permanent/temporary water distribution network including standalone facilities for drinking water, laying of piped water supply system.
- Environment preservation and pollution control measures effluent treatment plants, prevention of pollution of streams, lakes, ponds, ground water, other water sources in the region, measure for controlling air and dust pollution caused by mining operations and dumps, mine drainage system, mine pollution prevention technologies and measures for working or abandoned mines and other air, water & surface pollution control mechanisms required for environment-friendly and sustainable mine development.
- Health care- the focus must be on creation of primary/ secondary health care facilities in the affected areas. The emphasis should not be only on the creation of the health care infrastructure, but also on provision of necessary staffing, equipment and supplies required for making such facilities effective. To that extent, the effort should be to supplement and work in convergence with the existing health care infrastructure of the local bodies, state and Central government. The expertise available with the National Institute of Miners’ Health may also be drawn upon the design special infrastructure needed to take care of mining related illnesses and diseases. Group insurance Scheme for health care may be implemented for mining affected persons.
- Education – construction of school buildings, Additional class rooms, Laboratories, Libraries, Art and craft room, Toilet blocks, Drinking water provisions Residential Hostels for students/teachers in remote areas, sports infrastructure, engagement of teachers/other supporting staff, e-learning setup, other arrangement of transport facilities (bus/van/cycles /rickshaws/etc.) and nutrition related programs.
- Welfare of Women and Children- Special programme for addressing problems of maternal and child health, malnutrition, infectious diseases, etc. can be taken up under the PMKKKY.
- Welfare of aged and disabled people – Special programme for welfare of aged and disabled people.
- Skill development- Skill development for livelihood support, income generation and economic activities for local eligible persons. The projects/ schemes may include training, development of skill development center, self-employment schemes, support to Self Help Group and provision of forward and backward linkage for such self-employment economic activities.
- Sanitation – Collection, transportation & disposal of waste, cleaning of public places, provision of proper drainage & Sewage Treatment Plant, provision for disposal of fecal sludge, provision of toilets and other related activities.
Other priority Areas – Up to 40% of the PMKKKY to be utilized under these heads.
- Physical infrastructure – providing required physical infrastructure – road, bridges, railways and waterways projects.
- Irrigation – development of alternate sources of irrigation, adoption of suitable and advanced irrigation techniques.
- Energy and Watershed Development – Development of alternate source of energy (including micro-hydel) and rainwater harvesting system. Development of orchards, integrated farming and economic forestry and restoration of catchments.
- Any other measures for enhancing environmental quality in mining district.
About DMFT Koderma
The Ministry of Mines, through the Mines and Minerals (Development and Regulation) Act, 1957 (2015 Amendment) authorizes all District Mineral Foundations (Trust) to collect part of the royalties coming from the mining companies. Fund collection directly depends upon mining production. These funds are used for bringing development in mining affected areas. Initiatives are projects are taken as per PMKKKY guidelines and direction of government to ensure better facilities to affected people.
Particulars of D.M.F
|Sl No.||FY||Amount received in DMF (in Rs)||Amount utilized from DMF (in Rs)
|Balance Amount (in Rs)|
|5||2020- 21 (01.04.2020 to 31.07.2020)||2480987.00||1071000.00||25508152.00|
(As per Bank Statement)
- Deputy Commissioner, Koderma- as the Chairman.
- Deputy Development Commissioner, Koderma – as Member Secretary.
- Superintendent of Police, Koderma – member.
- Divisional Forest Officer, Koderma – member.
- District Education Officer, Koderma – member.
- Civil Surgeon, Koderma – member.
- Deputy Director of Mines, North Chotanagpur Division, Hazaribag- member.
- District Mining Officer, Koderma – member.
- Chairman Zila Parishad representative– member.
- Jharkhand Small Industries Association, representative – member.
- MP Hazaribag representative – member.
- MP Koderma representative – member.
- MLA Koderma representative – member.
- MLA Barhi representative – member.
- MLA Barkatha representative – member.
- Two Lessee holders nominanted by trust– member.
- Pramukhs and Up-Pramukhs of all mining-affected area – member.
- Mukhiyas and Up-Mukhiyas of the mining-affected area – member.
- Deputy Commissioner, Koderma – as the Chairman of the Committee
- Superintendent of Police, Koderma – member
- Deputy Development Commissioner, Koderma – as Member Secretary
- Divisional Forest Officer, Koderma – member
- District/Assistant Mining Officer, Koderma – member
- Civil Surgeon, Koderma – member
- District Panchayati Raj Officer, Koderma – member
District Survey Report (DSR)
Updated Report Under DMFT
1.Financial Details under MDFT