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Press Information Bureau
Government of India
Ministry of Mines
28-November-2016 16:18 IST
Introduction of District Mineral Foundation Levy

The Mines and Mineral (Development and Regulation) Act, 1957 (MMDR Act, 1957) was amended through the MMDR Amendment Act, 2015. One of the amendment provisions relates to introduction of section 9B which provides for the establishment of District Mineral Foundation (DMF) in any district affected by mining related operations. The object of the DMF is to work for the interest and benefit of persons, and areas affected by mining related operations.

 

The Ministry of Mines has notified the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015, on 17.9.2015, which prescribes the rate of contribution to DMF as follows:

 

                               I.            10% of royalty in respect of mining leases granted on or after 12.1.2015; and

 

                            II.            30% of royalty in respect of mining leases granted before 12.1.2015.

 

 

The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) has been launched by the Government which will be implemented through funds collected under DMF.

 

At least 60% of PMKKKY funds will be utilized for high priority areas like: (i) drinking water supply; (ii) environment preservation and pollution control measures; (iii) health care (iv)education; (v) welfare of women and children; (vi) welfare of aged and disabled people; (vii) skill development; and (viii) Sanitation.  The rest of the funds will be utilized undertaking works like for: (i) physical infrastructure; (ii) irrigation; (iii) energy and watershed development; and (iv) any other measures for enhancing environmental quality in mining district.

 

 

 

 

The details of amount collected under DMF in 12 mineral rich states is provided below:

         

S.No

State

Total Number of districts in which DMF has been set up

Total Amount Collected under DMFs (figures are in rupees crores)

1

Goa

2

40.99

2

Karnataka

30

117.91

3

Chhattisgarh

27

712.04

4

Odisha

30

1432.91

5

Madhya Pradesh

51

480.01

6

Jharkhand

24

567.02

7

Rajasthan

33

130.00

8

Telangana

10

58.67

9

Andhra Pradesh

13

28.09

10

Gujarat

32

09.95

11

Maharashtra

11

11.61

12

Tamilnadu

0

0

Total

263

3589.388

Source: State Governments

Figures as on 10.10.2016

 

 

This information was given by the Minister of State (IC) in the Ministry of Mines, Power, Coal and New & Renewable Energy Shri Piyush Goyal in reply to a question in Rajya Sabha today.

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YSK/Uma