Instructions of the Central Government for ‘District Mineral Establishment’ (DMF)

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Instructions of the Central Government for ‘District Mineral Establishment’ (DMF)

Recently, the Central Government has issued instructions regarding District Mineral Foundation (DMF).

The Mines and Minerals (Development and Regulation) Amendment Bill, 2015 mandates the State Governments to establish District Mineral Establishments (DMFs) in all the districts for the welfare and benefit of the persons affected by mining related works.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKY) will be implemented using the money earned for DMFs of the respective districts.

The Mines and Minerals (Development and Regulation) Amendment Act, 2021 empowers the central government to direct the use of DMF.

Under this authority, the Central Government has issued the following directions:

  • There will be strict compliance with regard to the utilization of funds by the DMF.
  • No money from DMF shall be transferred to State Treasury or State Level Fund (by whatever name called) or Chief Minister’s Relief Fund or any other fund or schemes.
  • And no expenditure will be granted or approved by the State Government or any State level agency from the funds of DMF at the State level.
  • The move has been referred to as an attempt by the central government to take over the fiscal powers of the states and dilute their constitutionally defined role in governance.

Source – The Hindu

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