A human touch to India’s Mineral Ecosystem

In 2014, scrutiny of coal block allocations and the Comptroller and Auditor General's 2012 report led to the government amending the Mines and Minerals (Development and Regulation) Act in 2015. This amendment introduced mandatory auctions and established District Mineral Foundations (DMFs) to channelize mining revenues for local development. The DMFs have been instrumental in local community development over the past decade, marking a significant transformation from past practices.

Establishment and Purpose:

• Creation of DMFs: The Mines and Minerals (Development and Regulation) Act was amended in 2015 to mandate auctions for mineral allocations and to create District Mineral Foundations (DMFs) as a new body for channelizing mining revenues.
• Objective of DMFs: DMFs were established to ensure that a portion of mining revenues is invested in community-centric development projects in mining-affected districts, thus aligning with the Prime Minister’s vision of integrating local communities into the resource-led development model.
• Impact on Local Communities: Over the past decade, DMFs have accumulated nearly Rs 1 lakh crore, funding three lakh projects across 645 districts, significantly contributing to the socio-economic development in mining regions.

Achievements and Innovations:

• Project Implementation: DMFs have spearheaded various projects such as skills development, infrastructure enhancement, and socio-economic upliftment. Notable examples include self-help groups in Odisha and drone technology training in Madhya Pradesh.
• Transparency and Efficiency: The ‘National DMF Portal’ has been introduced to digitize administration and oversight, ensuring greater transparency and efficient fund utilization.
• Local Innovations: Each DMF has adopted unique strategies, such as including elected representatives and establishing engineering departments, to address local needs and challenges effectively.

Future Directions and Integration:

• Standardization and Planning: Efforts are underway to standardize best practices across DMFs while maintaining local context. This includes creating three-year plans for targeted goal achievement.
• Convergence with Existing Schemes: DMFs are encouraged to align with central and state schemes to enhance their impact and support sustainable development goals.
• Expansion of Focus: Future initiatives include using DMFs to support forest dwellers, develop sports infrastructure, and integrate broader development goals with ongoing government schemes.

Practice Question:

Q: Evaluate the impact of the District Mineral Foundations (DMFs) established under the Mines and Minerals (Development and Regulation) Act amendment of 2015. Discuss the successes and challenges faced by DMFs in transforming mining-affected areas, and suggest measures to enhance their effectiveness in achieving sustainable development goals.