The District Mineral Foundation (DMF) was conceived as a transformative institution to ensure that those who bear the brunt of mining activities also share in its benefits. Established in March 2015 under the Mines and Minerals (Development & Regulation) Act, the DMF is designed to channel a part of its mining royalty into improving the lives and livelihoods of affected communities. However, a decade later, DMFs are struggling to fulfil their mandate. A detailed assessment of 23 states and key DMF districts by us paints a concerning picture.
While DMFs across the country have collected over `103,000 crore, only about 40 percent of the funds have been utilized. Worse, much of this spending has been directed towards capital-intensive projects — roads, bridges, buildings, parking lots, and water pipelines — projects that should ideally be funded by state and Central government budgets. The projects that matter most to mining-affected communities — livelihoods, skills, education, health, support for small businesses and freedom from destitution and hunger — have received minimal support.
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