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.