District Mineral Foundation (DMF) is a non-profit trust established under the Mines and Minerals (Development & Regulation) Act, 1957 – Section 9B.
Purpose: To work for the interest and benefit of persons and areas affected by mining-related operations.
2. Funding Source
DMF is financed through royalty payments made by mining lease holders.
It is not an additional tax, but a percentage deduction from royalty payable to the Government.
3. Contribution Rates
Lease Grant Date
DMF Contribution
On or after 12 January 2015
10% of royalty
Before 12 January 2015
30% of royalty
4. Usage of DMF Funds
Funds are majorly utilized for:
Drinking water supply
Healthcare & sanitation
Education
Skill development
Welfare of women & children
Environment protection and pollution control
Rehabilitation & resettlement of displaced communities
5. Key Features
Works under the jurisdiction of the District Collector / DMF Trust.
Spending priority areas are defined under PMKKKY – Pradhan Mantri Khanij Kshetra Kalyan Yojana (2015).
At least 60% of DMF funds must be spent on high priority areas, such as healthcare, drinking water & environment.
Remaining 40% may be used for infrastructure and other developmental works.
6. Beneficiary Areas
Directly affected mining villages
Indirectly affected villages
District-level community development projects
🔹 One–Line Revision Points
DMF is established under Section 9B, MMDR Act 1957.
DMF contribution is linked to royalty.
10% DMF for leases granted on or after 12-01-2015.
30% DMF for leases granted before 12-01-2015.
Guided by PMKKKY (2015) for fund allocation.
Purpose: Welfare of mining-affected people and environment.
📝 MCQs (10) | With Answers & ExplanationsQ1. DMF was introduced under which Act? A. Coal Mines Regulation B. Mines Act 1952 C. MMDR Act 1957 D. MMR 1961 E. None Answer: C Explanation: DMF is legally created under Section 9B of the MMDR Act, 1957.Q2. DMF contribution for leases granted ON or AFTER 12 January 2015 is: A. 5% of royalty B. 10% of royalty C. 20% of royalty D. 30% of royalty E. 50% of royalty Answer: B Explanation: New auction-based leases (after 12/01/2015) → 10% DMF.Q3. DMF contribution for leases granted BEFORE 12 January 2015 is: A. 10% B. 20% C. 30% D. 40% E. 50% Answer: C Explanation: Old leases before 12/01/2015 require 30% of royalty contribution.Q4. DMF funds are collected from: A. GST B. Penalty C. Royalty from mining leaseholders D. Mining cess E. Mineral dispatch fee Answer: C Explanation: DMF funding = Percentage of royalty paid by leaseholders.Q5. The primary objective of DMF is: A. Increase Government taxes B. Promote mineral export C. Welfare of mining affected people D. Attract foreign mining firms E. Raise revenue for central government Answer: C Explanation: DMF is created specifically for communities affected by mining.Q6. Which scheme gives priority utilization framework for DMF funds? A. PMGKY B. PMAY C. PMKKKY D. PMJDY E. MGNREGA Answer: C Explanation: DMF expenditure guidelines operate under PMKKKY (2015).Q7. Minimum % of DMF funds to be used for high priority areas is: A. 10% B. 20% C. 50% D. 60% E. 75% Answer: D Explanation: At least 60% of DMF funds must be used for high priority needs.Q8. Who generally supervises DMF operation in a district? A. Surveyor B. Mining Engineer C. District Collector / DMF Trust D. DGMS E. Ministry of Steel Answer: C Explanation: DMF is governed and monitored at district level, mostly by Collector.Q9. Which is NOT a high priority DMF expenditure area? A. Drinking water B. Women & Child development C. Sports stadium construction D. Healthcare E. Environmental restoration Answer: C Explanation: Stadium is infrastructure category, not high priority like water/health.Q10. A mine granted in 2018 pays ₹5 crore royalty. DMF payable = ? A. ₹15 crore B. ₹50 lakh C. ₹1.5 crore D. ₹5 crore E. ₹0.5 crore Answer: E Explanation: 2018 lease → 10% DMF 10% of ₹5 crore = ₹0.5 croreNew Adventures
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