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India’s Mineral Ecosystem
Context:
Over the past decade, the District Mineral Foundations (DMFs) have amassed nearly ₹1 lakh crore, funding decentralised, community-centric development in mining-affected districts.
About DMF:
- The District Mineral Foundation (DMF) was established in 2015 through amendments to the Mines and Minerals (Development and Regulation) Act. Its primary aim is to share the benefits of mining with communities affected by these activities.
- Royalty Contribution by Mining Companies:Under the scheme, mining companies are required to contribute a portion of their royalties to the DMF. 30% of royalties are collected for leases granted before 2015, while 10% of royalties are contributed for leases granted through the auction mechanism post-2015.
- The DMF funds operate as non-profit, independent trusts under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). Their focus is on the welfare of mining-affected communities and environmental conservation.
- Since the inception of the DMF, over 3 lakh projects have been approved across 645 districts in 23 states. This has played a crucial role in transforming mineral wealth into significant regional development initiatives.
- Allocation of DMF Funds Under PMKKKY Guidelines:According to PMKKKY guidelines, at least 60% of DMF funds are directed toward high-priority areas such as drinking water supply, education, healthcare, environmental preservation, women and child welfare, elderly and disabled welfare, skill development, and sanitation.
- The remaining DMF funds are allocated to other priority areas such as infrastructure development, irrigation, energy development, and environmental quality enhancement in mining areas.
- Financial Contributions to DMF Between 2015-2021:Between 2015 and September 2021, the DMF collected a total of ₹53,830 crore. This amount came from:39% from coal and lignite,50% from major minerals and 11% from minor minerals.
Achievements of DMF:
- Empowering Communities and Marginalised Groups
DMFs play a key role in supporting mining-affected communities, partnering with state governments to promote inclusive development. Initiatives like Odisha’s self-help groups and Madhya Pradesh’s drone training programs empower locals, fostering growth and self-reliance. - Innovative Governance
DMFs address local challenges by involving elected representatives and gram sabha members in governance, ensuring inclusivity. Some districts have also established dedicated engineering departments to improve project efficiency. - Long-Term Planning and Transparency: DMFs are adopting three-year plans for sustained impact, with the National DMF Portal ensuring transparency in fund allocation and execution, aligning with the government’s inclusive development goals.
- Integration with Central and State Schemes: DMFs enhance their impact by integrating with central and state schemes, supporting livelihoods, rural athletes, and sports infrastructure, reflecting a ‘whole of government’ approach.
- Cooperative Federalism and Global Leadership by aligning central and state priorities, DMFs amplify their effect on underserved regions, turning natural resources into drivers of local development and setting a global example of balancing growth with social welfare.
India’s Forgotten Country by Bela Bhatia provides a deep exploration of marginalised communities, particularly focusing on tribal populations in India’s conflict-ridden areas like Chhattisgarh.
- Bela Bhatia’s “India’s Forgotten Country: A View from the Margins” highlights the struggles of marginalised communities facing state repression, exploitation, displacement, and human rights violations.
- Her work aligns with the goals of District Mineral Foundations (DMFs), which aim to address such injustices by providing resources to mining-affected communities. The DMFs’ efforts to uplift these areas reflect the themes in Bhatia’s book, focusing on addressing state failures and advocating for the rights and development of marginalised groups.
Down’s Syndrome in Jadugoda refers to the severe health and environmental issues caused by uranium mining in Jharkhand, India.
- Indigenous communities in the region suffer from congenital disabilities, cancer, and infertility due to prolonged radiation exposure.
- Activism continues to push for better healthcare and protections, but balancing mining’s economic benefits with the well-being of local populations remains a challenge.
- DMF could help areas like Jadugoda by directing resources towards healthcare, environmental preservation, and economic empowerment.
