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

News-CRUX-10     25th July 2023        
Samadhaan

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.
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