District Mineral Foundation

District Mineral Foundation are statutory bodies set up as non-profit organisations in districts which are affected by the mining works. Each District Mineral Foundation is established by the State Governments by notification as a trust or non-profit body in the mining operation affected districts. They derive their legal status from Mines and Minerals (Development and Regulation) Amendment Act, 2015.


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

Composition and Functions

Composition and Functions of the DMF is prescribed by the State Governments taking guidelines from article 244 of Indian Constitution, fifth and sixth schedules, provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 as well as from the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.


Every mining lease holder will have to pay a fraction of royalty, not exceeding one-third of the royalty, to the DMF as per rates prescribed by Central Government. The Ministry of Mines Mines is the nodal agency for monitoring the implementation of the DMF.

Present Scenario

Nearly Rs 5,000 crore has been so far collected through District Mineral Foundation (DMF). This fund will be used for the welfare of the people affected in the mining affected areas. The fund money has been collected from the contribution received from holders of mining lease.

The government has launched the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) which will be implemented through funds collected under DMF. At least 60% of PMKKKY funds will be spent in areas like drinking water supply, environment preservation, pollution control measures, health care, education etc.