Revised District Mineral Foundation Rules in Tamil Nadu

Background of District Mineral Foundation

Revised District Mineral Foundation Rules in Tamil Nadu: The District Mineral Foundation (DMF) is a statutory trust created to address the needs of people affected by mining activities. It is mandated under the Mines and Minerals (Development and Regulation) Act, 1957. The objective is to ensure that mineral wealth contributes directly to local development.

Static GK fact: The DMF concept was introduced through an amendment to the MMDR Act in 2015 to promote inclusive mineral-led growth.

Revision of DMF Rules in Tamil Nadu

The Government of Tamil Nadu has revised the DMF framework by notifying the Tamil Nadu District Mineral Foundation Rules, 2025. These rules replace the earlier set of rules framed in 2017. The revision reflects the state’s intent to strengthen governance and accountability in mineral-related welfare spending.

The updated rules aim to correct implementation gaps observed over the years. Greater clarity has been provided on fund usage, authority structure, and compliance mechanisms.

Objective of the 2025 Rules

The primary focus of the revised rules is to improve the utilisation of DMF funds for communities and regions directly impacted by mining. Mining often leads to environmental degradation, livelihood loss, and health challenges in surrounding areas. The new rules attempt to address these concerns more systematically.

Static GK Tip: DMF funds are classified as non-lapsable funds, meaning they do not return to the state treasury at the end of a financial year.

Mandatory Contribution and Penalties

Under the revised framework, mining lease holders are required to pay DMF contributions strictly as prescribed. In case of violations or delayed payments, the contribution must be paid along with interest. This provision strengthens enforcement and discourages non-compliance.

Such financial discipline ensures timely availability of resources for development projects. It also reinforces the principle that mining entities must bear social responsibility.

Focus on Directly Affected Areas

A key reform under the DMF Rules 2025 is the allocation mandate. At least 70 percent of DMF funds must be spent on directly affected areas. These include villages and habitations where mining operations take place or cause immediate impact.

This provision reduces fund diversion and ensures that benefits reach the most vulnerable sections. Priority sectors include drinking water, healthcare, education, sanitation, and skill development.

Administrative Structure and Leadership

The revised rules designate the District Collector as the head of the District Mineral Foundation Trust. This enhances administrative control and accountability at the district level. The Collector plays a central role in planning, approval, and monitoring of DMF-funded projects.

Static GK fact: The District Collector is the chief administrative officer of a district and represents the state government at the local level.

Significance for Mineral Governance

The Tamil Nadu District Mineral Foundation Rules, 2025 mark an important step toward responsible and people-centric mineral governance. By tightening fund management and prioritising affected communities, the rules align mineral extraction with social justice and sustainable development goals.

Static Usthadian Current Affairs Table

Revised District Mineral Foundation Rules in Tamil Nadu: