

In Tamil Nadu, the aim of DMFT (District Mineral Foundation Trust) is to work for the benefit of people and areas affected by mining operations within the district, by utilizing funds collected from mining lease holders to improve the lives of communities impacted by mining activities, primarily through the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) scheme mandated by the central government; essentially focusing on the development and welfare of mining-affected regions.
Key points about DMFT in Tamil Nadu:
- Legal basis: Established under Section 9B of the Mines and Minerals (Development and Regulation) Act, 2015.
- Funding source: Contributions from every mine and quarry lease holder in the district.
- Focus areas: Education, healthcare, infrastructure development, livelihood generation, and environmental restoration in mining affected areas.
- Governance: Managed by a committee under the chairmanship of the District Collector.
- Objectives of DMFT: The District Mineral Foundation (DMF) aims to serve the welfare of individuals and areas impacted by mining activities, as guided by the respective State Government’s regulations.
District Mineral Foundation:
Through the amendment in Mines & Minerals (Development & Regulation) (MMDR) Act, in 2015, Government of India has made provision for establishment of District Mineral Foundation in all the districts affected by mining. Accordingly, Section 9(B) of the MMDR Act provides for the establishment of DMF as a non-profit body, object of DMF, and the power of State Government to prescribe the composition and functions of District Mineral Foundation.
The object of the District Mineral Foundation is to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government. So far, DMFs have been set up in 645 districts in 23 States in the country which have framed DMF rules.
In any 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.
- The object of the District Mineral Foundation shall be to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government.
- The composition and functions of the District Mineral Foundation shall be such as may be prescribed by the State Government.
- The State Government while making rules under sub-sections (2) and (3) shall be guided by the provisions contained in article 244 read with Fifth and Sixth Schedules to the Constitution relating to administration of the Scheduled Areas and Tribal Areas and the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 and the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.
- The holder of a mining lease or a prospecting licence-cum-mining lease granted on or after the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount which is equivalent to such percentage of the royalty paid in terms of the Second Schedule, not exceeding one-third of such royalty, as may be prescribed by the Central Government.
- The holder of a mining lease granted before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which the mining operations are carried on, an amount not exceeding the royalty paid in terms of the Second Schedule in such manner and subject to the categorization of the mining leases and the amounts payable by the various categories of lease holders, as may be prescribed by the Central Government.