An independent research analysis of the District Mineral Foundations (DMF) has shown gross underutilisation and misutilisation of funds. 

Key Details in the Report

• Prepared By: The report was prepared by iForest, an independent research group.
• Assessment: iForest conducted a decadal pan-India review assessment of all 23 States where DMFs have been set up.
• Findings: 
• • Unspent Funds: More than half of the over ₹1-lakh crore funds collected in the past decade are unspent 
  • Mineral wise Share: Non-coal major minerals account for over 51.5% of the total accruals followed by share of coal and lignite with about 37% share.
    • Minor minerals contribute about 11.5% of the total DMF funds.
  • State wise Share of DMF funds:
    • Odisha( 29%)  
    • Chhattisgarh ( 14%)  
    • Jharkhand (13% )
    • Collectively these three States account for over 56% of the total DMF funds collected in the past 10 years in the country.
  • Future Projections: iFOREST has projected the future total DMF accruals in the next 10 years (2025-26 to 2034-25) ie. to the tune of  ₹2,50,000 crore to ₹3,00,000 crore.
    • The annual accruals will range from ₹20,000 crore to ₹30,000 crore
• Concerns Raised: 
• • Sub Optimal Institutional Design: DMFs are practically dominated by officials and elected representatives with minimal representation of the mining-affected communities, such as from the Gram Sabhas of the mining-affected villages.
  • Inefficient Fund Utilisation: The spending pattern of DMF funds is mostly in  infrastructure-heavy investments while undermining the investments in human resources and developing social infrastructure in all the districts. 
    • Example: In Dhanbad, out of the 1,164 projects sanctioned till 2024, only ₹1.86 crore have been allocated for skill development and livelihood generation.
      • In Kendujhar, only about 3.2% of the total allocations are for livelihood and skill development projects till 2022.
  • Systematic and Long-term Planning: There is no long term planning for the utilisation of funds and often the funds are diverted to activities that are not directly linked to the welfare of mining districts.
  • Local Participation: Lack of people’s engagement in identifying and designing intervention measures are hindering their full potential.