Knowledge Resource
| The District Mineral Foundation Funds (DMF) programme was launched by the government in 2015 as a benefit-sharing programme with the communities impacted by mining. The mining corporations would pay 30% of the royalty amount for leases awarded prior to 2015 and 10% for leases granted post-2015 via the auction procedure under the DMF scheme. The Pradhan Mantri Khanij Kshetra Kalyan Yojana is connected to independent, non-profit DMF funds (PMKKKY). It carries out a number of welfare initiatives for the environment and communities impacted by mining. The DMF funding should be used for high-priority areas to the extent of at least 60%. This report uses a DMF Utilisation Index to analyse the collection, allocation, and spending trends in India's top 12 mining states (DMFUI). The DMFUI evaluates the states based on qualitative factors like the proportion of DMF allocation going to high-priority areas and the distribution across priority areas, as well as quantitative data like the allocation to collection ratio and expenditure to collection ratio. In every measure, Chhattisgarh comes in first place and continuously outperforms the other states. The index demonstrates the variation in DMF welfare spending among a subset of twelve states. |
