Brief Context
In Context The Ministry of Mines announced the setting up of a Program Management Unit (PMU) to improve the efficiency of the District Mineral Foundation (DMF) and ensure smooth implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). What is District Mineral Foundation (DMF)? Legal Provision: Constituted under Section 9B of the Mines and Minerals (Development and Regulation) (MMDR) Act 1957 (amended in 2015).
Source Content
Syllabus: GS2/ Governance, GS3/ Economy
In Context
- The Ministry of Mines announced the setting up of a Program Management Unit (PMU) to improve the efficiency of the District Mineral Foundation (DMF) and ensure smooth implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
- PMU will facilitate coordination between Centre, States, and DMF districts.
What is District Mineral Foundation (DMF)?
- Legal Provision: Constituted under Section 9B of the Mines and Minerals (Development and Regulation) (MMDR) Act 1957 (amended in 2015).
- Nature: A non-profit trust set up in mining-affected districts.
- Objective: To work for the interest and benefit of persons and areas affected by mining-related activities.
- Status: DMFs have been established in 645 districts across 23 States.
- Funding: Contribution by Mining Lease Holders:
- 30% of royalty for leases granted after 2015.
- Funds are deposited at the district level and not transferred to the Consolidated Fund of India.
- The amount collected is meant for area-based development, not for general infrastructure.
Fund Utilization Guidelines (via PMKKKY)
- About: The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) was launched in 2015 and revised in 2024 to guide the use of DMF funds for Aspirational Districts and Blocks Programme.
- Purpose: To minimize the negative impacts of mining and provide sustainable livelihoods to affected people.
- Fund Allocation: 70% of funds must be used for high-priority sectors like drinking water, healthcare, education, women & children welfare.
- 30% of funds may be used for supporting infrastructure like roads, bridges, and electricity.
Significance of DMF-PMKKKY Model
- Strategic Fund Utilization: It ensures mining funds (DMF) are used in a planned way for local development based on PMKKKY guidelines.
- Community Welfare Focus: It prioritizes improving the lives and well-being of communities affected by mining activities.
- Enhanced Governance: It promotes transparency and accountability in how mining revenues are managed and spent locally.
- Sustainable Development Aim: It encourages a balance between mining and long-term socio-economic and environmental well-being.
- Grassroot Governance: Provides a template for community-led planning and bottom-up governance.
Concerns
- Unspent Funds: A significant share of collected funds remains unused due to weak administrative capacity and poor project execution.
- Misallocation: Funds are often spent on general infrastructure projects (like roads and administrative buildings) instead of core welfare areas.
- Governance Issues: DMFs often function under the district collector’s control, with minimal involvement of local communities.
- Poor Planning: No structured Annual Action Plans.
Way Forward
- Empower Gram Sabhas and local communities in decision-making.
- Enforce third-party audits and social audits for transparency.
- Build capacity of district-level institutions for better fund utilization.
- Mandate Annual Development Plans based on local needs and baseline data.
Source: ET