**Executive Summary**
This document presents the Ministry of Mines' response to questions raised in Lok Sabha regarding the 'Aspirational DMF Programme'. Answered on December 10, 2025, the document outlines the programme's objectives, major reforms for transparency, steps for capacity building, and the utilization of DMF funds. Key aspects include aligning DMF works with national programmes, enhancing transparency through revised guidelines, and emphasizing community-centered development.
**Key Points / Main Content**
* **Aspirational DMF Programme Objectives:**
* Align DMF works with key Aspirational District Programme (ADP) and Aspirational Block Programme (ABP) sectors.
* Converge DMF funds with central and state schemes for greater impact on mining-affected communities.
* **Reforms for Transparency and Compliance (PMKKKY Guidelines, January 2024):**
* Clear demarcation of directly and indirectly affected areas.
* Preparation of a five-year perspective plan and a yearly plan.
* Restriction on fund transfer from DMF to State Exchequer or other State-level funds.
* Establishment of a State Level Monitoring Committee (SLMC).
* Audit of DMF accounts by a Chartered Accountant and Comptroller and Auditor General (C&AG) with public disclosure.
* Preparation of annual report and submission to the State Government for tabling before the State Legislative Assembly and hosting on the DMF website.
* Launch of National DMF Portal by the Ministry of Mines.
* **Capacity Building and Fund Utilization:**
* Up to 5% of annual receipts can be used for administrative and supervisory costs.
* DMFs with over Rs. 50 crore annual collection must establish a Project Management Unit.
* The Ministry organizes capacity building programs for district authorities and nodal officers.
* Approval of fund expenditure lies with the Governing Council of DMF.
* Mandatory allocation of at least 70% of DMF funds to directly affected areas.
* **Community-Centered Development:**
* Revised PMKKKY guidelines ensure effective utilization of DMF Funds.
* Funds support Self Help Groups (SHGs), Food Producer Organisations (FPO), Farmer Cooperatives Organisations (FCOs), skill development, livelihood generation, agriculture, animal husbandry, healthcare, education, drinking water supply, and sanitation.
**Impact Analysis**
**Stakeholder: Mining-Affected Communities**
* **Impact:** Beneficiaries of community-centered development projects funded by DMF, including improved access to healthcare, education, and livelihood opportunities.
* **Action Required:** Engage with local DMF authorities to identify needs and participate in planning and implementation of projects.
**Stakeholder: District Authorities and DMF Nodal Officers**
* **Impact:** Responsible for implementing the 'Aspirational DMF Programme' and adhering to the revised PMKKKY guidelines.
* **Action Required:** Participate in capacity building programs, establish Project Management Units (where applicable), and ensure compliance with the revised guidelines for transparency and accountability.
**Stakeholder: State Governments**
* **Impact:** Responsible for overseeing DMF operations within their respective states and ensuring alignment with national guidelines.
* **Action Required:** Establish State Level Monitoring Committees (SLMCs), ensure preparation and submission of annual reports to the State Legislative Assembly, and host DMF information on their websites.
Key Entities Referenced
District Mineral Foundation (DMF): A trust established in districts affected by mining to implement various developmental projects using funds accrued from mining royalties.
Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines: Guidelines issued by the Central Government, revised in January 2024, to govern the operation of the District Mineral Foundation (DMF), aiming for transparency, planning, and compliance.
Aspirational DMF Programme: A government initiative to align DMF projects with the Aspirational District and Block programmes for better outcomes in mining-affected areas.
Rajasthan, Gujarat and Himachal Pradesh: States mentioned for specific details on amounts collected, sanctioned, and spent in various sectors under the DMF.
Ministry of Mines: The ministry responsible for the administration of the DMF scheme at the central government level.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
STARRED QUESTION NO. †*159
ANSWERED ON 10.12.2025
ASPIRATIONAL DMF PROGRAMME
†*159. SHRI DAMODAR AGRAWAL:
SMT. SHOBHANABEN MAHENDRASINH BARAIYA:
Will the Minister of MINES be pleased to state:
(a) the details and objectives of the newly launched 'Aspirational DMF Programme'
by the Government;
(b) the major reforms introduced by the Government to strengthen transparency,
planning and accounting compliance in District Mineral Foundation (DMF) operations
in the States;
(c) the steps taken by the Government for the capacity building of the district
authorities and DMF nodal officers;
(d) the details of amount collected, sanctioned and spent in various sectors under
the DMF in Rajasthan, Gujarat and Himachal Pradesh during the last five years,
district and year-wise;
(e) whether financial approval from the concerned State Government is mandatory
for the utilisation of the funds collected under DMF and if so, the details thereof and
reasons therefor; and
(f) the arrangements made to ensure the effective use of DMF funds for community-
centered development in areas affected by mining?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) to (f): A Statement is laid on the table of the House.
*****THE STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED
QUESTION NO. †*159 REGARDING ‘ASPIRATIONAL DMF PROGRAMME’
ASKED BY SHRI DAMODAR AGRAWAL AND SMT. SHOBHANABEN
MAHENDRASINH BARAIYA: MEMBER OF PARLIAMENT FOR REPLY ON 10TH
DECEMBER 2025.
(a) The objective of the ‘Aspirational DMF Programme’ is the alignment of DMF
works with key Aspirational District Programme (ADP)/ Aspirational Block
Programme (ABP) sectors and performance indicators as well as convergence of
DMF funds with ongoing Central/State schemes for multiplier effect and
strengthened outcomes for mining affected communities.
(b) To strengthen transparency, planning and accounting compliance in DMF
operations, the Central Government issued revised PMKKKY guidelines in January
2024 which inter alia include the following:
Clear demarcation of directly and indirectly affected areas,
Preparation of a five-year perspective plan and a yearly plan.
Restriction on fund transfer from DMF to the State Exchequer or any State
level fund.
Establishment of a State Level Monitoring Committee (SLMC), a grievance
redressal system and compliance mechanism.
In addition to audit of the DMF accounts every year by a Chartered
Accountant and placing report in the public domain along with the annual
report, it provides for audit by Comptroller and Auditor General (C&AG).
Preparation of annual report on its activities for the respective financial year
and submission to the State Government for laying before the State
Legislative Assembly and hosting on the website of DMF.
The Ministry of Mines has also launched National DMF Portal.
(c) The PMKKKY Guidelines, 2024 mandate that an amount not exceeding 5% of
the annual receipts of the Foundation may be utilized for administrative, supervisory
and overhead costs of the foundation. Further, the DMFs with annual collection in
the excess of Rs.50 crores are mandated to set up a Project Management Unit for
planning, and technical, accounting and monitoring support. Further, the Ministry
organises suitable capacity building programs for district authorities and DMF nodal
officers to strengthen on-ground monitoring and implementation of DMF schemes.
(d) District-wise details of DMF funds are available at
https://mines.gov.in/webportal/content/state-dmf.(e) The PMKKKY guidelines, 2024 provide that the approval of expenditure of
funds from DMF funds lies solely with the Governing Council of DMF.
(f) DMFs have been established for the benefit of persons and areas affected by
mining operations across the country. Further, to ensure more effective utilization of
DMF Funds for community-centered development in areas affected by mining, the
Central Government issued revised PMKKKY guidelines in January 2024. The
guidelines provide for a clear demarcation of directly and indirectly affected areas,
the mandatory allocation of at least 70% of DMF funds to directly affected areas and
high-priority sectors. The guidelines also include creation of an Endowment Fund,
preparation and maintenance of an updated list of persons or local communities
affected by mining activities and convergence with ongoing central and state
schemes for achieving the Sustainable Development Goals (SDGs). DMF supportss
Self Help Groups (SHGs), Food Producer Organisations (FPO), Farmer
Cooperatives Organisations (FCOs), and Cooperatives in skill development and
livelihood generation, agriculture, animal husbandry, etc. DMF also supports
healthcare, education, drinking water supply, sanitation and other sectors, which
benefits the community at large.
*****