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Why is in news? Keonjhar finalises beneficiaries 7 years after DMF scheme

Odisha’s Keonjhar district is India’s highest recipient of funds under the District Mineral Foundation (DMF) scheme, and has spent ₹3,000 crore under the scheme over the past seven years, but the district has only recently finalised who the real beneficiaries are.

As per the Mine and Minerals Development Regulation (Amendment) Act, 2015, in every district affected by mining-related operations, the state government shall, by notification, establish a trust as a non-profit body to be called the District Mineral Foundation.

DMFT Funds: 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.

Objective: The idea behind the contribution is that local mining-affected communities, mostly tribal and among the poorest in the country, also have the right to benefit from natural resources extracted from where they live.

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.

Pradhan Mantri Khanij Kshetra Kalyan Yojana:

PMKKKY is a scheme by the Ministry of Mines for the welfare of people & affected areas by using the funds accrued under District Mineral Foundation (DMF).

Objectives: To implement various developmental and welfare projects/programs in mining affected areas that complement the existing ongoing schemes/projects of State and Central Government.

To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts.

To ensure long-term sustainable livelihoods for the affected people in mining areas.

At least 60% the fund will be utilized for "High Priority Areas" like Drinking water supply, Environment preservation & pollution control measure, Health care, Education, etc.