District Mineral Foundation 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.
- Keonjhar is hugely rich in mineral reserves, especially iron ore. The district has 2,555 million tonnes of iron ore available beneath its soil, of which approximately 50 million tonnes is extracted each year, a key driver of Odisha’s economy.
- 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.
- DMF Funds:Every mining lease holder of will pay a fraction of royalty, not exceeding one-third of the royalty, to the DMF as per rates prescribed by Central Government.
- This fund will be used for welfare of the people affected in the mining affected areas.
- In Keonjhar, the total DMF fund collection has touched an astounding ₹8,840 crore, the highest for any district in India.
- 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).
