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District Mineral Foundation (DMF) has once again come into focus after a significant ruling by the Allahabad High Court. The Court recently held that DMFs are beneficial legislation and must be interpreted liberally to ensure maximum benefit for people and areas adversely affected by mining activities. This judgment strengthens the rights-based nature of DMFs and reinforces their role in inclusive development. What are District Mineral Foundations (DMFs)? District Mineral Foundations are statutory, non-profit trusts established by State Governments in mining-affected districts. Their core objective is to ensure that local communities share the benefits arising from mineral extraction and that mining-related damage is addressed in a just and sustainable manner. Legal Basis of DMFs DMFs are established under Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957, introduced through the MMDR Amendment Act, 2015, which came into effect on 26 March 2015. The law mandates the creation of a DMF in every district affected by mining operations. Purpose and Functions The primary purpose of DMFs is the welfare of mining-affected people and areas. Their functions, decided by respective State Governments, focus on reducing the social, economic, health, and environmental impacts of mining activities. Administration and Jurisdiction DMFs operate under the jurisdiction of State Governments. States decide the composition, powers, and functioning of the DMF Trust. Funds are utilised based on an Annual Action Plan prepared by the trustees. Funding of DMFs DMFs are funded through mandatory contributions from mining lease holders of both major and minor minerals. Mining leases granted before 12 January 2015 contribute 30% of the royalty payable. Mining leases granted after 12 January 2015 contribute 10% of the royalty payable. Use of DMF Funds DMF funds are used for the overall development of mining-affected areas, including: Socio-economic infrastructure creation Health, education, and drinking water facilities Skill development and employment generation Environmental protection and restoration Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) Launched by the Ministry of Mines in 2015, PMKKKY ensures structured and effective utilisation of DMF funds. At least 60% of funds must be spent on high-priority areas such as health, education, drinking water, and environment. Up to 40% can be used for infrastructure, irrigation, energy, and watershed development. Significance of DMFs DMFs promote equitable sharing of mineral wealth, strengthen environmental justice, and support inclusive regional development. The Allahabad High Court’s ruling firmly establishes DMFs as a welfare-oriented mechanism rather than a mere administrative entity. Conclusion District Mineral Foundations are a cornerstone of sustainable and people-centric mining governance in India. Effective and transparent utilisation of DMF funds is essential for social justice, environmental protection, and balanced regional development. 👉 Join Our WhatsApp Channel- https://www.whatsapp.com/channel/0029VaaGAqPCxoAugdgpyH41 For any Query- Call Now: 📞 8988885050 or 8988886060 Email: 📩 info@vajiraoinstitute.com 🌐 Visit: www.vajiraoinstitute.com Registration is Now Open for both online and offline batches in 2026. Hurry up, limited seats. 📌 Follow us on Social Media: Facebook - https://www.facebook.com/vajiraoinstitute/ Twitter - https://x.com/vajiraoandreddy LinkedIn - https://www.linkedin.com/school/vajirao-and-reddy-institute-delhi Pinterest - https://in.pinterest.com/vajiraoandreddyinstitute #DistrictMineralFoundation #DMF #MiningInIndia #MMDRAct #PMKKKY #AllahabadHighCourt #IndianPolity #Governance #EnvironmentalJustice #SocialJustice #UPSCPrelims #UPSCMains #GS2 #GS3 #CurrentAffairs #MiningPolicy