Executive Summary:
This document provides the Government's response to Lok Sabha Starred Question No. 254 regarding District Mineral Foundation (DMF) Governing Councils, answered on August 6, 2025. It details the establishment, funding, and operation of DMFs across India, addressing concerns raised by members of parliament. The statement includes data on funds collected, sanctioned, and spent, as well as guidelines for fund approval, grievance redressal, and council composition.
Key Points / Main Content:
Establishment and Scope of DMFs:
* Section 9B of the Mines and Minerals Development and Regulation Act, 1957 mandates State Governments to establish a DMF in every mining-affected district.
* 646 DMFs have been established across 23 States in the country.
Financial Aspects of DMFs:
* Annexure-I provides State-wise data on funds collected, allocated, and spent under DMFs in high priority and other priority sectors, including specific data for Chhattisgarh and Rajasthan (data in Cr. Rupees).
* Section 6 of PMKKKY Guidelines 2024 stipulates that fund approval lies solely with the DMF Governing Council.
* State Governments' role is limited to monitoring the effective implementation of PMKKKY projects, not sanctioning projects or approving fund expenditure.
Grievance Redressal Mechanism:
* Section 12 of PMKKKY Guidelines 2024 requires a three-tier grievance redressal mechanism at the district, state, and national levels.
* There is no centralized data maintained at the State level regarding the number of complaints received and resolved.
Governing Council Composition:
* Section 4 of PMKKKY Guidelines 2024 states that the composition and functions of the DMF are determined by State Government rules.
* The PMKKKY Guidelines 2024 mandates the inclusion of elected representatives (Members of Parliament and Legislative Assemblies/Councils) in the Governing Councils of DMFs.
Other Considerations:
* No instances of opposition to DMF fund usage by Tribal Advisory Councils or Gram Sabhas have been reported to the Ministry of Mines.
* There is no proposal under consideration to utilize excess DMF funds in needy districts or to appoint public representatives as the Chairman of the DMF.
Impact Analysis:
State Governments:
* Impact: Their authority over DMF fund sanctioning is limited to monitoring project implementation, reducing direct control over fund allocation.
* Action Required: Ensure monitoring mechanisms are in place for effective project implementation under PMKKKY. Align State DMF rules with PMKKKY guidelines regarding Governing Council composition.
DMF Governing Councils:
* Impact: They have the sole authority for fund approval, increasing their responsibility for project selection and financial oversight.
* Action Required: Implement robust processes for project evaluation, approval, and monitoring. Adhere to PMKKKY guidelines for including elected representatives.
Citizens in Mining-Affected Districts:
* Impact: Benefit from projects funded by DMFs, aimed at improving their quality of life and addressing mining-related concerns.
* Action Required: Utilize the three-tier grievance redressal mechanism to report any issues or concerns related to DMF-funded projects.
Ministry of Mines:
* Impact: Responsible for overseeing the implementation of DMFs and addressing any policy-related issues.
* Action Required: Continue monitoring the establishment and operation of DMFs across the country. Address any emerging challenges or concerns related to DMF fund utilization and governance.
Key Entities Referenced
District Mineral Foundation: A statutory body established in every district affected by mining-related operations as mandated by the Mines and Minerals Development and Regulation Act, 1957.
Mines and Minerals Development and Regulation Act, 1957: An act of the Parliament of India that regulates the mining sector in India. Section 9B mandates establishment of DMF.
Chhattisgarh: A state in India with significant mining activity, specifically mentioned for funds collected, sanctioned, and spent under the DMF.
Rajasthan: A state in India with significant mining activity, specifically mentioned for funds collected, sanctioned, and spent under the DMF.
Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY): A program guideline related to the utilization of DMF funds for the welfare and development of areas affected by mining.
Governing Council of DMF: The body responsible for the approval and management of funds under the District Mineral Foundation.
G. Kishan Reddy: The Minister of Coal and Mines who answered the Lok Sabha question regarding DMF.
Lok Sabha: The lower house of the Parliament of India, where the starred question related to DMF was raised.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
STARRED QUESTION No. †*254
ANSWERED ON 06.08.2025
DMF GOVERNING COUNCILS
†*254. SHRI MAHESH KASHYAP:
SMT. ROOPKUMARI CHOUDHARY:
Will the Minister of MINES be pleased to state:
(a) whether the Government has established District Mineral Foundation (DMF) and
if so, the details thereof;
(b) the amount of funds collected, sanctioned and spent in various sectors under the
DMF in the country State-wise including various divisions/regions in Chhattisgarh
and Rajasthan;
(c) whether it is mandatory to obtain financial sanction for the expenditure of the said
amount collected under the said Foundation from the State Governments and if so,
the details along with the reasons therefor;
(d) the total number of complaints received and resolved so far under the Grievance
Redressal Mechanism in this regard;
(e) whether the provisions for inclusion of elected representatives in the Governing
Councils have been followed uniformly across the country and if so, the details
thereof;
(f) whether the Tribal Advisory Councils or Gram Sabhas have opposed the use of
DMF fund and if so, the response of the Government thereto;
(g) whether the Government proposes to formulate a policy so as to utilise the
excess amount of DMF fund in needy districts of the States; and
(h) whether the Government proposes to appoint public representative as the
Chairman of the DMF in place of present system?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) to (h): A Statement is laid on the table of the House.THE STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED
QUESTION NO. *254 REGARDING ‘DMF GOVERNING COUNCILS’ ASKED BY
SHRI MAHESH KASHYAP AND SMT. ROOPKUMARI CHOUDHARY, MEMBER
OF PARLIAMENT FOR REPLY ON 6TH AUGUST 2025.
(a) Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957
mandates that the State Government shall, by notification, establish a District
Mineral Foundation(DMF) in every district in the country affected by mining related
operations. So far, 646 DMFs have been established covering 23 States across the
country.
(b) the total amount of funds collected, sanctioned and spent in various sectors
under the DMF in the country State-wise including Chhattisgarh and Rajasthan is
given at annexure-I.
(c) Section-6 of PMKKKY Guidelines 2024 stipulates that the approval of funds from
DMF lies solely with the Governing Council of DMF. The State Government or State
Level Committee(by whatever name called) shall not have overarching authority on
sanction of projects, approval of funds/expenditure and their function shall be limited
to monitoring effective implementation of projects sanctioned under PMKKKY.
(d) Section 12 of PMKKKY Guidelines 2024 stipulates that a three tier grievance
redressal mechanism at district, state and national level shall be devised and
implemented to redress each grievance and suitable reply is given to the
complainant within the stipulated time frame. However, there is no centralized data
maintained in this respect at State level.
(e) Section 4 of PMKKKY Guidelines 2024 outlines that the composition and
functions of the DMF shall be as may be prescribed by the State Government in the
State DMF rules. The PMKKKY Guidelines 2024 mandates inclusion of elected
representatives such as Hon’ble Member of Parliament, Lok Sabha, Hon’ble Member
of Parliament, Rajya Sabha, Members of Legislative Assembly and Members of
Legislative Council as a member in Governing Council of DMFs.
(f) No such cases related to opposition to the use of DMF fund by Tribal Advisory
Councils or Gram Sabhas has come to notice of the Ministry of Mines.
(g) and (h) No such proposal is under consideration as on date.
*****Annexure-I
(Rs. in Cr.)
High Priority Sector Other Priority Sector
S.No. State Collection Allocation Spent Allocation Spent
1 Andhra Pradesh 2375.05 939.37 488.71 1341.82 517.41
2 Assam 281.53 92.91 70.87 48.54 35.35
3 Bihar 189.38 54.87 43.57 37.81 16.12
4 Chhattisgarh 15402.43 10781.14 7555.80 5402.58 3790.71
5 Goa 239.38 97.05 57.15 15.45 10.31
6 Gujarat 1912.37 1120.57 581.41 425.86 223.12
7 Haryana 91.24 - - - -
Himachal
376.79 99.70 36.58 107.37 37.45
8 Pradesh
Jammu &
88.85 31.01 24.00 17.78 10.88
9 Kashmir
10 Jharkhand 13791.40 7342.67 5211.45 3012.74 1467.96
11 Karnataka 5919.46 2597.63 1181.57 1602.51 925.90
12 Kerala 111.23 0 0 0 0
Madhya
8604.71 2555.25 2105.98 2087.09 1262.12
13 Pradesh
14 Maharashtra 6680.41 3011.49 1772.51 1907.92 1127.76
15 Meghalaya 89.18 7.14 3.14 6.54 4.54
16 Odisha 31323.53 19186.97 13324.99 7432.85 4211.83
17 Punjab 276.39 0 0 0 0
18 Rajasthan 10833.39 4090.58 1863.74 6398.50 3269.89
19 Tamil Nadu 1657.40 570.79 489.75 468.48 429.76
20 Telangana 6134.25 2231.67 1448.77 4390.86 2931.45
21 Uttar Pradesh 2376.21 498.02 409.79 560.53 397.82
22 Uttarakhand 491.63 98.24 55.35 91.07 69.43
23 West Bengal 177.69 45.60 30.14 23.80 18.46