Every mine leaves a scar on the district around it. One fund exists purely to compensate the people living in that scar, not to dig more mines.
🏛️ Must Know
What District Mineral Foundations Actually Do
- Established in 2015 District Mineral Foundations were established under the Mines and Minerals (Development and Regulation) Amendment Act, 2015.
- Real Purpose Their real purpose is protecting the interests of persons affected by mining operations, not promoting mineral exploration.
- Not a Licensing Body DMFs don’t authorize state governments to issue mineral exploration licences. That’s a separate function entirely.
- A Non-Profit Trust Each DMF is set up as a non-profit trust in every district affected by mining-related operations.
Good to Know
📘 Good to Know
How DMFs Are Funded and Used
- Royalty-Based Funding Mining lease holders pay a share of their royalty into the DMF, capped at one-third. Rates are set by the Central Government.
- Welfare Projects DMF funds go toward development and welfare projects in mining-affected areas, addressing environmental, health, and socio-economic impacts.
- Long-Term Livelihood Focus A stated goal is ensuring long-term, sustainable livelihoods for people affected by mining, not just short-term compensation.
📝 Previous Year Questions
UPSC CSP 2016 — The Real Purpose of District Mineral Foundations
- UPSC 2016 District Mineral Foundations protect the interests of persons affected by mining operations. They don’t promote mineral exploration or authorize exploration licences. See UPSC CSP 2016 GS Paper I, Q62. View this question.
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Great to Know
🌟 Great to Know
DMFs and the Broader Pradhan Mantri Khanij Kshetra Kalyan Yojana
- PMKKKY Umbrella DMF funds are utilized through the Pradhan Mantri Khanij Kshetra Kalyan Yojana, a scheme specifically for mining-affected areas.
- Fund Underutilization Reports have flagged significant underutilization of DMF funds in several mining-heavy districts, echoing similar criticism of CAMPA.
- A Shared Governance Pattern Like CAMPA, DMFs show a recurring pattern in Indian environmental law. Dedicated funds get created for compensation, but implementation lags behind the legal framework.
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