What are DMF Funds that are to be used by the states to combat COVID-19?

Finance Minister Nirmala Sitaraman recently instructed the state governments to use DMF (District Mineral Foundation) funds to fight against COVID-19. This is being done to supplement medical facilities that will help fight against Corona Virus.

What are DMF Funds?

The District Mineral Foundation is a non-profit body. It was set up in those districts that were affected by mining works. The Foundation works towards the benefit and interest of the persons affected due to the mining activity. The Funds are allocated according to the rules of MMDR act.

Legislation

The DMF funds were set up under Section 9B of Mines and Minerals (Development and Regulation) MMDR amendment act. The act says that every mine holder has to contribute 10% of their loyalty towards the funds.

Pradhan Mantri Khanij Khsetra Kalyana Yojana

The DMF funds are used to implement the scheme. The scheme focuses on safeguarding environment, health and economic conditions of the tribal people. This is because, most of the productive mines in the country are located in the tribal areas.

DMF Funds

The DMF funds so far were used for drinking water supply, health care, environment preservation, women welfare, education, sanitation and skill development.

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