🗞️ Why in News The Ministry of Mines organised the National District Mineral Foundation (DMF) Summit 2026 on March 23-24 at the SCOPE Convention Centre, New Delhi. Union Minister of Coal and Mines G. Kishan Reddy inaugurated the summit, emphasising that DMF funds must prioritise mining-affected areas over political considerations.
National DMF Summit 2026 — Strengthening Mining-Area Governance
Summit Overview
| Feature | Detail |
|---|---|
| Event | National DMF Summit 2026 |
| Date | March 23-24, 2026 |
| Venue | SCOPE Convention Centre, New Delhi |
| Theme | Effective Utilisation of District Mineral Funds for ADP/ABP Areas |
| Inaugurated by | G. Kishan Reddy (Union Minister of Coal and Mines) |
| Also present | Satish Chandra Dubey (MoS Mines), Secretary Piyush Goyal |
The summit brought together senior officials from Central Ministries, State Governments, District Administrations, and NITI Aayog. A DMF Exhibition showcased successful projects across health, nutrition, water supply, education, skill development, livelihoods, renewable energy, and infrastructure.
What Is the District Mineral Foundation?
The District Mineral Foundation (DMF) is a non-profit trust established under Section 9B of the Mines and Minerals (Development and Regulation) Amendment Act, 2015 in every district affected by mining-related operations.
Its core purpose is to work for the interest and benefit of persons and areas affected by mining — addressing the developmental deficit that mining-dependent regions often face despite being resource-rich (the “resource curse” paradox).
How DMF Is Funded
Mining lease holders are required to contribute a percentage of royalty to the DMF:
| Lease Category | Contribution Rate |
|---|---|
| Leases granted on or after January 12, 2015 | 10% of royalty |
| Leases granted before January 12, 2015 | 30% of royalty |
This ensures that mining revenue flows back to the communities most affected by mining operations.
DMF Key Statistics
| Parameter | Data |
|---|---|
| DMF districts | 306 (across 23 states) |
| Total funds accrued | Over Rs 40,000 crore |
| Implementation scheme | PMKKKY (launched September 2015) |
| High Priority allocation | Minimum 70% |
| Other sectors allocation | Maximum 30% |
PMKKKY — The Implementation Framework
The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), launched on September 17, 2015, provides the operational framework for utilising DMF funds:
High Priority Areas (minimum 70% allocation):
- Drinking water supply
- Health care
- Nutrition
- Education
- Environment preservation and pollution control
- Skill development
- Women and child welfare
- Welfare of aged, disabled, and tribal communities
- Sanitation
Other Priority Areas (maximum 30%):
- Physical infrastructure (roads, bridges, railways)
- Irrigation
- Energy and watershed development
- Afforestation and reclamation of mines
Focus on Aspirational Districts and Blocks
The summit specifically linked DMF utilisation with two NITI Aayog programmes:
Aspirational Districts Programme (ADP):
- Launched: January 2018
- Districts: 112 across 28 states
- Objective: Transform India’s most underdeveloped districts through convergence of central and state schemes
- Key indicators: Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion & Skill Development, Infrastructure
Aspirational Blocks Programme (ABP):
- Launched: January 2023
- Blocks: 500 across India
- Objective: Extend the ADP model to block-level development
- Focus: Bridging intra-district development gaps
Many mining-affected districts overlap with Aspirational Districts, making DMF a natural funding source for accelerated development.
Challenges in DMF Utilisation
Despite substantial fund collection, several challenges persist:
- Underutilisation — Many districts have spent only 30-50% of collected funds
- Governance gaps — Weak planning capacity at district level
- Diversion concerns — Funds sometimes used for general municipal works rather than mining-affected community welfare
- Lack of community participation — Limited involvement of affected populations in fund allocation decisions
- Monitoring — Inadequate outcome tracking and audit mechanisms
The MMDR Act — Evolution
The Mines and Minerals (Development and Regulation) Act has evolved significantly:
| Year | Key Change |
|---|---|
| 1957 | Original MMDR Act enacted |
| 2015 | Major amendment: introduced DMF, auction-based allocation, PMKKKY |
| 2021 | Amendment for removal of end-use restriction, auction of captive mines |
| 2023 | Amendment allowing private sector exploration of critical minerals |
UPSC Relevance
Prelims: DMF (Section 9B, MMDR Act 2015), PMKKKY, contribution rates (10%/30%), Aspirational Districts Programme. Mains GS-2: Mining governance and community welfare; the resource curse and institutional responses. Mains GS-3: Mineral resource management; sustainable mining and environmental remediation.
📌 Facts Corner — Knowledgepedia
District Mineral Foundation (DMF):
- Established under: Section 9B, MMDR Amendment Act 2015
- Nature: Non-profit trust in each mining-affected district
- Total districts: 306 (across 23 states)
- Total funds: Over Rs 40,000 crore
- Contribution: 10% of royalty (post-2015 leases); 30% (pre-2015 leases)
PMKKKY:
- Full form: Pradhan Mantri Khanij Kshetra Kalyan Yojana
- Launched: September 17, 2015
- High Priority: 70% minimum (health, water, education, environment, nutrition)
- Other Priority: 30% maximum (infrastructure, irrigation, energy)
National DMF Summit 2026:
- Date: March 23-24, 2026, SCOPE Convention Centre, New Delhi
- Inaugurated by: G. Kishan Reddy (Coal and Mines Minister)
- Theme: Effective Utilisation for ADP/ABP Areas
- Data source: 306 DMF districts + NITI Aayog inputs
NITI Aayog Programmes:
- Aspirational Districts Programme (ADP): 112 districts, launched Jan 2018
- Aspirational Blocks Programme (ABP): 500 blocks, launched Jan 2023
MMDR Act Timeline:
- 1957: Original Act
- 2015: DMF, auction, PMKKKY
- 2021: End-use removal, captive mine auction
- 2023: Private exploration of critical minerals
Other Relevant Facts:
- India’s mining sector: ~2.5% of GDP
- Top mineral-producing states: Odisha, Rajasthan, Chhattisgarh, Jharkhand, Karnataka
- India has 1,531 operating mines (IBM Annual Report)
- Critical minerals list: 30 minerals notified by Ministry of Mines (2023)
Sources: PIB, ANI, Tribune India