The Deputy Commissioner of Dhanbad, Jharkhand has recently demanded an audit and assessment of the utilisation of District Mineral Foundation Trust (DMFT) funds for the years 2017 to 2020. The DMFT is a statutory provision under the Mine and Minerals Development Regulation (Amendment) Act, 2015, that mandates the creation of a non-profit trust in mining-affected districts. The state government sets up these trusts by notification.
DMFT: A Fund for Mining-Affected Communities
Mining companies contribute between 10-30% of the royalty they pay to the government to a District Mineral Foundation Trust within their operating district. The intention of this contribution is to ensure that local communities impacted by mining activities have the opportunity to benefit from the natural resources extracted from their vicinity. This initiative particularly focuses on tribal and impoverished communities who are amongst the poorest demographics in the country.
Status and Scope of DMFT
As per the data provided by the Ministry of Mines, DMFTs have been established in 572 districts of India, amassing more than Rs. 40,000 crore to date. The functioning of the DMFTs, as well as the allocation of their funds, are controlled by the states’ DMF Rules that incorporate the mandates of a central guideline known as the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
Harmony with PMKKKY
PMKKKY is an initiative spearheaded by the Ministry of Mines which seeks to provide welfare to people and areas impacted by mining via funds accrued under DMFT. The objectives of the scheme include implementing developmental and welfare projects in mining affected regions, minimising or mitigating adverse impacts of mining on the environment, health, and socio-economics of locals, and ensuring long-term sustainable livelihoods for those influenced by mining activities.
Implementation and Allocation of Funds
PMKKKY necessitates that at least 60% of funds are utilised for “High Priority Areas,” including drinking water supply, environmental preservation, pollution control measures, healthcare, and education. The remaining funds are channelled towards paving the way for “Other Priority Areas”, such as physical infrastructure, irrigation, energy and watershed development, and enhancement of environmental quality.
The recent order from the Dhanbad Deputy Commissioner emphasises the importance of transparency in the utilisation of these funds, and aims to ensure that they are being used to their full potential in benefiting mining-affected communities. This move underlines the government’s commitment to use the natural resources of the country in a way that benefits all citizens, particularly those who are directly impacted by mining operations.