Note4Students
From UPSC perspective, the following things are important :
Prelims level: District Mineral Foundation (DMF);
Mains level: Significance and Scope of DMF;
Why in the News?
The Indian government’s Mines and Minerals Act of 2015, which mandated auctions and established the District Mineral Foundation (DMF), continues to ensure local communities benefit from natural resource-led development.
- DMF after entering its 10th year has amassed almost ₹1 lakh crore, transforming mineral wealth into a development lifeline for these regions.
How did the District Mineral Foundation (DMF) work in India?
- The DMF mandates mining licensees and leaseholders to contribute a portion of their royalty payments to the DMF. The ‘National DMF Portal’ has been introduced to enhance transparency and efficiency.
- It aims to promote sustainable development and welfare for mining-affected communities.
- A District Collector leads the DMF, ensuring that funds are allocated to areas with the greatest need.
- Funds are used for decentralized, community-centric development projects in mining districts.
- As of 2024, around 3 lakh projects have been sanctioned across 645 districts in 23 states. These initiatives focus on improving socio-economic and human development indicators.
About Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY):
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Significance and Scope of DMF in India:
- Community Welfare: DMFs provide direct financial resources for the welfare of communities affected by mining activities, transforming mineral wealth into tangible social benefits.
- Inclusive Development: DMFs empower local communities, with focus on social inclusivity by involving elected representatives and non-elected gram sabha members in governance structures.
- Cooperative Federalism: DMFs are a model of cooperative federalism, converging national, state, and local governance to address mining impacts and foster regional development.
- Innovation and Planning: Various DMFs innovate to maximise project impact, adopting three-year plans for goal-oriented development, establishing dedicated engineering departments, and employing Public Works Department personnel for efficient project execution.
- Sustainability: DMFs aim to align with the Sustainable Development Goals (SDGs), focusing on forest dwellers’ livelihoods, sports infrastructure, and health. They contribute to long-term environmental and socio-economic sustainability.
Way Forward:
- Standardisation and Best Practices: Establish uniform guidelines to standardise successful practices across DMFs while retaining local knowledge, ensuring efficient implementation of long-term, goal-oriented projects.
- Enhanced Integration with National Schemes: Strengthen the integration of DMF activities with ongoing central and state schemes, particularly in aspirational districts, to amplify the socio-economic and environmental benefits in mining-affected regions.
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