The District Mineral Foundations (DMFs), established under the Mines and Minerals (Development and Regulation) (MMDR) Act of 2015, were intended to transform mining’s harmful impacts into positive development for local communities. Despite accumulating large funds, the initiative faces serious challenges due to weak governance, bureaucratic delays, and a lack of meaningful community involvement, particularly in states like Odisha, Jharkhand, Chhattisgarh, Rajasthan, and Madhya Pradesh.
DMFs were created to ensure that people living in mining-affected areas could benefit from the mineral wealth extracted from their lands. Funded through mining royalties, DMFs are meant to improve essential services like healthcare, education, drinking water, sanitation, and skill development. As mandated by the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) scheme, 60% of the funds must be spent on high-priority areas, while the remaining 40% is for infrastructure and livelihood projects.
Despite the promising concept, the implementation of DMFs is falling short. States like Odisha, Jharkhand, and Chhattisgarh have amassed substantial funds, but actual utilization is slow and inefficient. Political and bureaucratic hurdles, inconsistent planning, and lack of coordination between agencies are major obstacles. Rajasthan and Madhya Pradesh are experimenting with various approaches, including State Mineral Funds and outsourcing Project Management Units (PMUs), but their efforts are still plagued by inefficiencies and lack of clarity.
Crucially, the voices of local communities are barely heard in the planning and implementation of projects. Instead, decision-making is often top-down, failing to address the real needs of the affected populations. To fulfill the original vision of DMFs, stronger governance frameworks, better fund utilization mechanisms, and genuine participation from local communities are urgently needed.
Keywords: District Mineral Foundations (DMF), Mining Areas, Environmental Impact, Sustainable Development, PMKKKY (Pradhan Mantri Khanij Kshetra Kalyan Yojana), Governance, Health Care, Infrastructure, Fund Utilization, Stakeholders
Using the District Mineral Foundations for Environment and Development in Mining Areas
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