District Mineral Foundation [DMF]

By : Neha Dhyani

Updated : Apr 18, 2022, 6:23

District Mineral Foundation (DMF) is a statutory body established through notification by the State Governments in India. They obtain their legal status from section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, as amended on 26th March 2015 as Mines and Minerals (Development and Regulation) Amendment Act, 2015. This amendment came into force on 12th January 2015.

District Mineral Foundation (DMF) is established as a non-profit body or trust by the State Governments by notification in the mining operation affected districts. Its main purpose is to work for the benefit of the persons and areas affected by the mining-related operations in a manner prescribed by the State Government.

Objectives of District Mineral Foundation

The District Mineral Foundation (DFM) has the main objective to work for the benefit of the persons and areas affected by the mining-related operations in a manner prescribed by the State Government.

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District Mineral Foundation - Composition and Functions

Article 244 of the Indian Constitution, fifth and sixth schedules, Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996, lays down guidelines for the State Governments and the composition and Functions of the District Mineral Foundation (DMF) is set by the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.

Royalty, not exceeding one-third of the total royalty, is paid by every mining leaseholder to the DMF in line with the rates prescribed by the Central Government. The people affected in the mining-affected areas are benefited from this fund.

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District Mineral Foundation - Formation of Board of Trustees

The Board of Trustees consists of the following members namely:

  • Revenue Divisional Commissioner or Collector, as may be decided by the Government, shall be its Chairperson; if he is not the Chairperson, then the Collector; Additional District Magistrate and District Level Officers of Steel and Mines, Forest and Environment, Rural Development, Works, SC and, ST Development and Family and Health Welfare Departments and of such other Departments shall be its members, ex officio as the Government may specify.
  • The Managing Trustee shall be the Collector of the District.
  • One member each from the Lok Sabha and Odisha Legislative Assembly in whose constituency any major mineral concession is situated shall be its ex officio members.
  • Government nominates a maximum of 3 members of Urban Local Bodies from the area or Panchayati Raj Institutions in which any major mineral concession is situated.
  • The Chairperson may invite such other Officials to the meetings of the Board if the Chairperson may consider it necessary.
  • The quorum for the Board shall be considered as fifty per cent of the members.
  • At least two board meetings should be held in a financial year.

The District Mineral Foundation has the highest collection of DMF in Jharkhand, Odisha, Chhattisgarh, Telangana, and Rajasthan. Furthermore, income generation for local people is an essential aspect of the District Mineral Foundation.

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FAQs on District Mineral Foundation [DMF]

Q.1. How many states in India have set up District Mineral Foundation?

A review of the 12 states shows that governments in 11 states have issued notifications establishing District Mineral Foundation (DMF) as a Trust.

Q.2. What is the main objective of the District Mineral Foundation?

The objective of the District Mineral Foundation (DFM) is to work in the best interest of the benefit of the persons and areas affected by the mining-related operations in such manner prescribed by the State Government.

Q.3. Which states have the highest District Mineral Foundation (DMF) contribution to the total collection?

The District Mineral Foundation has the highest DMF collection in Odisha, Jharkhand, Chhattisgarh, Telangana, and Rajasthan.

Q.4. How many District Mineral Foundations have been set in our Country?

District Mineral Foundations (DMFs) have been set up in 572 districts of our country.

Q.5. What is District Mineral Foundation (DMF) payment?

Contribution to District Mineral Foundation (DMF) means nothing but Payment of Tax.