District Mineral Foundation Scheme

Why in News?

  • Under the District Mineral Foundation (DMF) scheme, Odisha’s Keonjhar district is India’s highest recipient of funds and has spent ₹3,000 crore under the scheme over the last seven years.
  • Keonjhar is hugely rich in mineral reserves, particularly iron ore. The district has 2,555 million tonnes of iron ore storage beneath its soil, of which approximately 50 million tonnes is extracted each year, a major driver of Odisha’s economy.

About DMF Scheme-

  • According to the Mine and Minerals Development Regulation (Amendment) Act, 2015, in every district affected by mining-related operations, the state government shall, by notification, set up a trust as a non-profit body to be called the District Mineral Foundation (DMF).
  • DMF Funds- Funds every mining lease holder of will pay a fraction of royalty, not more than one-third of the royalty, to the DMF as per rates fixed by Central Government. This fund will be used for welfare of the people affected in the mining affected areas.
  • In Keonjhar, the total DMF fund collection has reached a breathtaking ₹8,840 crore, the highest for any district in India.
  • Objective- The idea behind the contribution is that local mining-affected communities, mainly tribal and among the poorest in the country, also have the right to benefit from natural resources extracted from where they live.
  • Functioning- The functioning of the DMF trusts and the fund use governed by states’ DMF Rules include the mandates of a central guideline, Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) –

  • PMKKKY is a scheme launched in 2015 under the Ministry of Mines for the welfare of people and affected areas by using the funds received under District Mineral Foundation.
  • Objectives- To implement several developmental and welfare projects or programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government.
  • To mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts.
  • To ensure long-term sustainable livelihoods for the affected people in mining areas.
  • Implementation- At least 60 percent the fund will be utilized for “High Priority Areas” such as Drinking water supply, Environment preservation & pollution control measure, Health care, Education, etc.
  • Rest of the fund will be utilized for “Other Priority Areas”, for example Physical infrastructure, Irrigation, Energy & watershed development and Measures for improving environmental quality.

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