District Mineral Foundations (DMFs)
Context:
Recently, the Ministry of Mines announced that it would make provision for the establishment of DMF in all districts which are affected by mining activities.
- The proposed change was done through an amendment to the Mines & Minerals (Development & Regulation) (MMDR) Act, in 2015.
Relevance:
GS-02 (Government policies and interventions)
About District Mineral Foundations (DMFs):
- DMFs were established in 645 districts across 23 states in India.
- It was established under the Mines and Minerals (Development and Regulation) Act, 1957.
- These are non-profit trusts that aim to work for the benefit of mining-affected communities, focusing on social and economic development.
Understanding District Mineral Foundations (DMFs)
- Objective and Structure:
- DMFs were set up to address the negative impacts of mining on local communities and the environment.
- As they operate as nonprofit trusts, their structure and functions are determined by the respective state governments.
- A key responsibility of DMFs is the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
- Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):
- The scheme aims to enhance the quality of life for those affected by mining operations.
- It mandates that 70% of the DMF fund be allocated to high-priority sectors, including drinking water, healthcare, education, and environment protection, while 30% can be used for other priority areas.
- Over ₹1,03,000 crores have been collected by DMFs so far.
- Challenges Faced by DMFs and PMKKKY:
- Unspent Funds: More than half of the accumulated funds remain unused due to slow project execution and poor planning.
- Misallocation of Funds: Only three states have met the target of allocating over 70% of funds to high-priority sectors.
- Lack of local representation: In most states, DMFs are controlled by officials and politicians, with only five states including mining-affected communities in decision-making bodies.
- Poor Planning and Accountability: No district has published a five-year perspective plan despite a directive in 2022.
- Absence of Impact Assessments: There are no social audits or impact assessments to evaluate the effectiveness of DMF schemes.
Prelims Question:
Consider the following statements:
- District Mineral Foundations (DMFs) are non-profit trusts that are set up to address the negative impacts of mining on local communities and the environment.
- One of the key responsibilities of DMFs is to implement the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
Answer: (c) Both 1 and 2
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