PMU has been planned for improving the efficiency and effectiveness of District Mineral Foundation (DMF) / Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
About DMF
- Mines and Minerals (Development and Regulation) (MMDR) Act 1957 provides for the establishment of DMF, in all mining affected districts, as a non-profit body.
- Objective: To work for the interest and benefit of persons and areas affected by mining related operations.
- Composition and Functions: Prescribed by the State Government.
- So far, DMFs have been set up in 645 districts in 23 States which have framed rules.
- Funding Mechanism: Mining lease holders contribute to DMF a percentage of royalty paid.
- Fund Utilization: Funds under DMF are accrued at the concerned districts and are utilised as per the guidelines under PMKKKY.
- PMKKKY aims to implement developmental and welfare projects/programs, to minimize/mitigate the adverse impacts of mining, and ensure sustainable livelihoods for affected people in mining areas.
- PMKKKY provides for utilization of at least 70% of the funds for high priority areas like drinking water, pollution control, healthcare, education, welfare of women and children etc.
Need for improving DMFs
- Unspent Funds: More than half remains unspent due to poor fund deployment and execution.
- Misallocation of funds: Infrastructure projects instead of priority areas have received the largest share of DMF spending.
- Governance Issues: DMFs function as extensions of the district collectorate with minimal representation of the affected communities.
- Unstructured Investment planning: No DMF has developed a structured annual plan.
