DISTRICT MINERAL FOUNDATION TRUST (Syllabus: GS Paper 3 - Infrastructure)

Context: There was a delay of 17-50 months in identifying areas and people affected by mining in Chhattisgarh, an audit by the Comptroller and Auditor General (CAG) found.

• The CAG report found several irregularities in the working of the trust, including the delays in projects and underutilisation of funds.
• The delay was calculated from the time the DMFT was first established in 2015 to March 2021.

District Mineral Foundation Trust  (DMFT) 

• DMFT was setup by the Chhattisgarh government in 2015 as a nonprofit in all districts of Chhattisgarh to work for the interest and benefit of people and areas affected by mining operations. 
• It is funded through the contribution from miners. 
• They derive their legal status from section 9B of mines and minerals (Development and Regulation) Act, 2015. 
• Mining companies contribute 10-30% on the royalty amount that they pay to the government to DMF Trust in the district they are operating in.
• The functioning of the DMF trusts and the fund use governed by states’ DMF Rules incorporate the mandates of a central guideline, Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) that specifies high priority areas of investments.