District Mineral Foundation (DMF) Fund for COVID-19 – Explained

District Mineral Foundation fund (or DMF Fund) was constituted in 2015 as a benefit-sharing mechanism with mining-affected communities, recognizing them as partners in natural resource-led development.

What is District Mineral Foundation (DMF) Fund?

After amending the Mines and Minerals (Development and Regulation) Act, it was constituted as non-profit trust in all mining districts of India with objective to work for the interest and benefit of people and areas affected by mining.

Use of DMF Fund for COVID-19 relief

During COVID-19 outbreak Government of India has announced that DMF funds can be used by state governments to augment healthcare. This includes supplementing healthcare facilities, screening and testing requirements, and any other support that might be required.

How much money are we talking about?

The cumulative accrual in DMF trusts is about Rs. 35,925 crores so far. Fund comes from mining companies operating in districts they are required to give 10% equivalent of royalty amount for lease granted (30% for before 2015 leases) for whole mining period. Despite substantial need, most of DFM fund remained unused in across Indian states. In January 2020 unused DMF fund was at Rs. 23,511 crore as only 12,414 crore (35 per cent) has been spent.

Government has capped the maximum DMF fund amount can be used for COVID-19 outbreak relief to 30 per cent of unused amount, which roughly translate to around Rs. 7000 crores.

State nameTotal DMF collection (Rs. cr)Unspent DMF fund(Rs. cr)Amount can be utilised for COVID-19(Rs. cr)
Madhya Pradesh2,8642,012604
DMF Fund amount that can be utilized by states for COVID-19 relief

Source: Ministry of Mines, Government of India, DMF

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