What is DMFT?

District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from the holder of major or minor mineral concession in the district as may be prescribed by the Central or State Government.

Objectives:

The objective of District Mineral Foundation is to work for the interest of the benefit of the persons and areas affected mining related operations in such manner as may be prescribed by the State Government.

Establishment:

State government notification vide G.O.Ms.No 3,4,5 dated 20-01-2016, enacted DMFT Rules, 2016 to establish District Mineral Foundation Trust in each district of the state as a non-profit body in the mining operation affected districts. In all 33 districts District Mineral Foundation Trust has been established in the state.

State government notification vide G.O.Ms.No 38 which is also referred as Telangana State District Mineral Foundation (Trust) Amendment Rules, 2018 has mentioned directly affected areas as an area within a radius of ten kilometers from a mine or cluster of mines, irrespective of whether the area falls within the district concerned or adjacent district while the entire district comes under indirectly affected area.

Composition of the Trust:

• District Mineral Foundation Committee (DMFC) is formed for each DMF for its smooth operations and management. The members of the committee are:
• District Minister/In-charge Minister: Chairperson Ex-Officio
• Chief Planning Officer: Member-Convenor
• Project Director, District Rural Development Agency: Member-Treasurer
• District Collector and Magistrate: Member-Secretary
• MPs, MLAs and District Officials of various departments: Other members of DMFC

Amount of contribution to be made to District Mineral Foundation:

Every holder of a mining lease or a prospecting licence-cum-mining shall, in addition to the royalty, pay to District Mineral Foundation of the district in which the mining operations are carried on, an amount at the rate of-

(a) Royalty paid in respect of mining leases granted before 12th January, 2015 – 30%

(b) Royalty paid in terms of prospecting licence-cum-mining lease granted on or after 12th January, 2015 – 10%

(c) Royalty paid by granite mining leaseholders – 20%

(d) Percentage on seigniorage fee shall be recovered by the Govt. Engineering/Consuming Departments alongwith seigniorage fee from contractor bills on the quantity of minor mineral consumed in the construction and remitted to DMF account for any engineering works entered agreement for execution on or after first April, 2018 – 30%

Utilization of Funds:

The objective of District Mineral Foundation is to utilize the DMF Contribution in Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and other welfare schemes to implement various developmental and welfare projects/programs in mining affected areas, to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts. to ensure long-term sustainable livelihoods for the affected people in mining areas. According to PMKKKY at least 60% of the funds to be utilized under high priority areas and remaining 40% of the fund to be utilized under other priority areas.