**Policy Summary: Aspirational DMF Programme Guidelines**
On July 9, 2025, the Ministry of Mines issued guidelines for the "Aspirational DMF Programme" to optimize the use of District Mineral Foundation (DMF) funds within Aspirational Districts. These guidelines aim to synchronize DMF activities with key sectors identified in the Aspirational Districts Programme (ADP) and Aspirational Block Programme (ABP), while also promoting the convergence of DMF funds with existing Central and State government schemes. The goal is to maximize the impact of these funds on mining-affected communities.
The program focuses on five core themes of the ADP: Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion & Skill Development, and Infrastructure. These themes align with the sectors outlined in the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) guidelines issued in January 2024.
Of the 112 Aspirational Districts, 106 are also DMF districts, including Kandhamal in Odisha. Boudh district in Odisha is not classified as an Aspirational District. The PMKKKY guidelines emphasize that DMF-funded activities should complement ongoing State and Central government initiatives. Priority is to be given to achieving targets under the ADP and ABP when formulating schemes.
As per information received from the State Government of Odisha, DMF Kandhamal District has sanctioned and completed three projects with a total allocation of Rs 18 lakh.
Key Entities Referenced
Ministry of Mines: The Indian government ministry responsible for the administration of mines and minerals.
District Mineral Foundation (DMF): A fund established in districts affected by mining operations to address the welfare and developmental needs of the affected communities.
Aspirational Districts Programme (ADP): An initiative by the Government of India to rapidly transform under-developed districts across the country.
Aspirational Block Programme (ABP): A programme by the Government of India focusing on improving the quality of life of citizens in the most backward blocks of the country.
Kandhamal district, Odisha: A district in the state of Odisha, India, identified as both an Aspirational District and a DMF district.
Boudh district, Odisha: A district in the state of Odisha, India, which is a DMF district but not an Aspirational District.
Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY): A scheme by the Ministry of Mines for the welfare and development of areas affected by mining-related operations.
SHRI SUKANTA KUMAR PANIGRAHI: Member of Parliament who asked the starred question regarding the use of DMF funds.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
STARRED QUESTION No. *151
ANSWERED ON 30.07.2025
USE OF DMF FUND
*151. SHRI SUKANTA KUMAR PANIGRAHI:
Will the Minister of MINES be pleased to state:
(a) whether the Government has issued or proposes to issue operational guidelines
for the use of District Mineral Foundation (DMF) fund in Aspirational Districts that do
not have active major mining operations such as Kandhamal and Boudh in Odisha;
(b) if so, the details thereof including the convergence or pooled funding
mechanisms that have been allowed for developmental projects in the said districts;
and
(c) the details of the number of proposals received or approved for such districts
under the revised guidelines along with current status of their implementation
including allocation and utilisation of funds?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) to (c): A Statement is laid on the table of the House.
*****THE STATEMENT REFERRED TO IN REPLY TO LOK SABHA STARRED
QUESTION NO. *151 REGARDING ‘USE OF DMF FUND’ ASKED BY SHRI
SUKANTA KUMAR PANIGRAHI, MEMBER OF PARLIAMENT FOR REPLY ON
30TH JULY 2025.
(a) to (c) The Ministry of Mines has issued guidelines for ‘Aspirational DMF
Programme’ on 9th July 2025 with an objective to align DMF works with key
Aspirational District Programme (ADP)/ Aspirational Block Programme (ABP) sectors
and convergence of DMF funds with ongoing Central/State schemes for multiplier
effect and strengthened outcomes for mining affected communities. The five core
themes of the ADP like Health & Nutrition, Education, Agriculture & Water
Resources, Financial Inclusion & Skill Development, and Infrastructure align with the
sectors specified in Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)
Guidelines issued by the Ministry in January 2024. Out of the 112 Aspirational
Districts, 106 districts are also DMF districts including Kandhamal district of Odisha.
However, Boudh district of Odisha is not an Aspirational district.
Further, section - 2 of the PMKKKY Guidelines stipulates that the developmental and
welfare activities to be undertaken should be, as far as possible, in the nature of
complementing the ongoing schemes/projects being funded by the State as well as
Central Government. While formulating schemes, DMFs will give priority to achieving
targets under ADP and ABP.
As per the information received from the State Government of Odisha, three projects
have been sanctioned and completed under DMF Kandhamal District with a total
amount of Rs 18 lakh.
*****