Program Management Unit to Improve the Efficiency of the DMF

Context

The Ministry of Mines announced the putting in of a Program Management Unit (PMU) to improve the efficiency of the District Mineral Foundation (DMF) and ensure smooth implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

District Mineral Foundation (DMF)

• Legal Provision: Constituted under Section 9B of the Mines and Minerals (Development and Regulation) (MMDR) Act 1957 (amended in 2015).
• Nature: A non-profit trust work in mining-affected districts.
• Objective: To work for the interest and gain of individuals and regions stricken by mining-related activities.
• Status: DMFs work in 645 districts across 23 States.
• Funding: Contribution by means of Mining Lease Holders:
  • 30% of royalty for rentals granted after 2015.
  • Funds are deposited on the district level and not transferred to the Consolidated Fund of India.
  • The quantity amassed is meant for area-based development, not for general infrastructure.

Fund Utilization Guidelines (through PMKKKY)

• About: The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) was launched in 2015 and revised in 2024 to guide the use of DMF budget for Aspirational Districts and Blocks Programme.
• Purpose: To minimize the bad effects of mining and offer sustainable livelihoods to affected people.
• Fund Allocation: 70% of funds need to be used for high-precedence sectors like ingesting water, healthcare, education, women & kids welfare.
  • 30% of the fund may be used for supporting infrastructure like roads, bridges, and electricity.

Significance of DMF-PMKKKY Model

• Strategic Fund Utilization: It ensures mining finances (DMF) are used in a planned way for local development based on PMKKKY hints.
• Community Welfare Focus: It prioritizes improving the lives and well-being of communities affected by mining sports.
• Enhanced Governance: It promotes transparency and duty in how mining revenues are managed and spent domestically.
• Sustainable Development Aim: It encourages a stability between mining and long-term socio-economic and environmental well-being.
• Grassroot Governance: Provides a template for community-led making plans and bottom-up governance.

Concerns 

• Unspent Funds: A significant share of collected finances remains unused because of weak administrative capacity and terrible challenge execution.
• Misallocation: Funds are regularly spent on popular infrastructure initiatives (like roads and administrative buildings) in preference to core welfare regions.
• Governance Issues: DMFs regularly function under the district collector’s control, with minimum involvement of local communities.
• Poor Planning: No dependent Annual Action Plans.

Way Forward

• Empower Gram Sabhas and local communities in decision-making.
• Enforce third-party audits and social audits for transparency.
• Build potential of district-level organisations for higher fund usage.
• Mandate Annual Development Plans based on local needs and baseline information.

Source: The ET

UPSC Prelims Practice Question

What is/are the purpose/purposes of ‘District Mineral Foundations’ in India? (2016)

1. Promoting mineral exploration activities in mineral-rich districts
2. Protecting the interests of the persons affected by mining operations
3. Authorizing State Governments to issue licences for mineral exploration

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Ans: (b)

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