Introduction of District Mineral Foundation Levy

The Mines and Mineral (Development and Regulation) Act, 1957 (MMDR Act, 1957) was amended through the MMDR Amendment Act, 2015. One of the amendment provisions relates to introduction of section 9B which provides for the establishment of District Mineral Foundation (DMF) in any district affected by mining related operations. The object of the DMF is to work for the interest and benefit of persons, and areas affected by mining related operations.

The Ministry of Mines has notified the Mines and Minerals (Contribution to District Mineral Foundation) Rules, 2015, on 17.9.2015, which prescribes the rate of contribution to DMF as follows:

12. 10% of royalty in respect of mining leases granted on or after 12.1.2015; and

12. 30% of royalty in respect of mining leases granted before 12.1.2015.

The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) has been launched by the Government which will be implemented through funds collected under DMF.

At least 60% of PMKKKY funds will be utilized for high priority areas like: (i) drinking water supply; (ii) environment preservation and pollution control measures; (iii) health care (iv)education; (v) welfare of women and children; (vi) welfare of aged and disabled people; (vii) skill development; and (viii) Sanitation.  The rest of the funds will be utilized undertaking works like for: (i) physical infrastructure; (ii) irrigation; (iii) energy and watershed development; and (iv) any other measures for enhancing environmental quality in mining district.

The details of amount collected under DMF in 12 mineral rich states is provided below:

S.No	State	Total Number of districts in which DMF has been set up	Total Amount Collected under DMFs (figures are in rupees crores)
1	Goa	2	40.99
2	Karnataka	30	117.91
3	Chhattisgarh	27	712.04
4	Odisha	30	1432.91
5	Madhya Pradesh	51	480.01
6	Jharkhand	24	567.02
7	Rajasthan	33	130.00
8	Telangana	10	58.67
9	Andhra Pradesh	13	28.09
10	Gujarat	32	09.95
11	Maharashtra	11	11.61
12	Tamilnadu	0	0
Total		263	3589.388
	Source: State Governments Figures as on 10.10.2016