Benefits of District Mineral Foundations (DMFs)

Source: The post benefits of District Mineral Foundations (DMFs) has been created, based on the article “A human touch to India’s mineral ecosystem” published in “The Hindu” on 16th September is 2024

UPSC Syllabus Topic: GS Paper 2- Governance-Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes

Context: The article discusses the success of District Mineral Foundations (DMFs), which use funds from mining companies for local development. Over 10 years, DMFs have transformed mining areas by funding projects that improve livelihoods and promote community welfare across India.

For detailed information on District Mineral Foundation Funds read this article here

What Is District Mineral Foundations (DMFs)?

1. District Mineral Foundations (DMFs) were created by the Indian government under the Mines and Minerals (Development and Regulation) Act, 2015.
2. DMFs receive payments from mining companies, contributing almost ₹1 lakh crore over ten years.
3. They focus on decentralised, community-centric development in mining-affected districts, funding around three lakh projects across 645 districts in 23 states. Examples include empowering women in Odisha through self-help groups and helping youth in Madhya Pradesh learn drone technology.

What Are the Benefits of District Mineral Foundations (DMFs)?

1. Decentralised Development: DMFs have collected nearly ₹1 lakh crore, funding local projects in mining-affected districts, improving infrastructure, healthcare, and education.
2. Empowering Communities: In Odisha, DMFs support self-help groups, helping women become artisans and entrepreneurs, boosting local economies.
3. Skill Development: In Madhya Pradesh, DMFs help youth master drone technology, leading to better job opportunities.
4. National DMF Portal: The portal digitises DMF administration, enhancing transparency, efficiency, and oversight of operations across India.
5. Innovation: DMFs involve local stakeholders, ensuring efficient implementation of projects and including elected and non-elected members for inclusivity.
6. Aligning with Government Schemes: DMFs are designed to align with central and state government schemes, particularly in “aspirational districts,” to support broader national goals like the Sustainable Development Goals. This integration helps amplify the impact of government initiatives at the local level.
7. Supporting Local Needs: DMFs have funded three lakh projects across 645 districts in 23 states, improving socio-economic and human development indicators.

What Is the Future Direction for DMFs?

1. The future direction of DMFs focuses on standardizing best practices while retaining the unique local context and knowledge in each district.
2. District administrations are encouraged to align DMF activities with central and state government schemes, particularly in aspirational districts, as part of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
3. Projects will focus on improving livelihoods of forest dwellers, supporting rural athletes, and developing sports infrastructure.
4. With the launch of the National Critical Minerals Mission, DMFs will further complement the broader mining landscape by focusing on local welfare.
5. DMFs operate under the philosophy of “Sabka Saath Sabka Vikas Sabka Vishwas Sabka Prayas,” ensuring inclusive governance and development for all

Question for practice:

Evaluate how District Mineral Foundations (DMFs) contribute to local community development and align with government schemes in mining-affected areas.