Union Minister Launches Operational Guidelines for Aspirational DMF Programme

Recently, the Union Minister of Coal & Mines, launched operational guidelines for the Aspirational District Mineral Foundation (DMF) Programme.

• Coffee Table Book 2.0 released during the workshop, highlights transformative DMF projects and their impact on local communities.
• State Recognitions:

• • For Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY 2024) Integration into DMF Rules: Jharkhand, Maharashtra, Odisha, Gujarat, Rajasthan, Himachal Pradesh, Goa.
  • For Timely Closure of Audit Reports: Tamil Nadu, Karnataka, Uttarakhand, Gujarat, Chhattisgarh.

Key Objectives of Aspirational DMF Programme

• Strategic convergence of DMF with Aspirational District Programme (ADP)/Aspirational Block Programme (ABP) priorities (NITI Aayog-led initiatives).
• Improve socio-economic indicators in India’s most underserved and mining-affected areas.
• Promote 100% fund saturation, community-driven development, and accountability.

About District Mineral Foundation (DMF)

• Establishment: District Mineral Foundations (DMFs) are statutory bodies, established as non-profit trusts under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2015.
• Purpose: To work towards the welfare and sustainable development of mining-affected communities.
  • The DMFs align with the objectives of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) to ensure equitable and effective utilization of the collected funds.
• The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is implemented through funds accrued to the DMFs.
• Fund Utilisation: PMKKKY provides for utilization of at least 70% of the funds for high priority areas like:
  • Drinking water supply, Housing and Sanitation.
  • Environment preservation and pollution control measures
  • Health care, Education; and Welfare of women and children
  • Welfare of aged and disabled people; 
  • Skill development, Agriculture, and Animal husbandry.
• It provides up to 30% of the funds shall be utilized for:
  • Physical infrastructure;Irrigation; energy and watershed development, and 
  • Any other measures for enhancing environmental quality in the mining district.
• Funding Mechanism: DMFs are funded through contributions from holders of major and minor mineral concessions.
  • The contribution rates are prescribed either by the Central Government or by the respective State Governments.
• Jurisdiction and Governance
• • The operation, composition, and functions of DMFs fall under the jurisdiction of State Governments.
  • State Governments are empowered to prescribe rules regarding the functioning and governance of DMFs.
• Funds collected by DMFs are managed at the district level to ensure a targeted and localized approach to development.

Significance for Inclusive Growth & Governance

• Demonstrates cooperative federalism and a whole-of-government approach.
• Enhances grassroots development in mineral-rich but socio-economically lagging areas.
• Supports PM’s vision of a Viksit Bharat and Atmanirbhar Bharat.

Challenges Ahead

• Ensuring proper fund utilisation and transparency.
• Overcoming implementation delays at district levels.
• Strengthening audit and accountability mechanisms.
• Sustaining community participation and long-term planning.

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