The Section 9B of the MMDR Act, 1957 empowers the State Government to establish District Mineral Foundation (DMF) Trust in all the Districts affected by mining for the benefit of the people and areas affected by mining activities. Accordingly, concerned State Governments have established DMFs in 626 districts in 23 states in the country.

Ministry of Mines circulated guidelines for Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY) vide order dated 16.09.2015 to be implemented by the DMF for taking up development and welfare works in mining affected areas.

As per the PMKKKY guidelines, instruction have been issued to the DMFs for identification of affected areas and people to be covered under the PMKKKY scheme and spend at least 60% of the funds on High Priority areas like: (i) drinking water supply; (ii) environment preservation and pollution control measures; (iii) health care; (iv) education; (v) welfare of women and children; (vi) welfare of aged and disabled people; (vii) skill development; and (viii) sanitation and up to 40% on Other Priority areas(i) physical infrastructure; (ii) irrigation; (iii) energy and watershed development; and (iv) any other measures for enhancing environmental quality in mining district.

Further, in rule 12, sub-rule (1)(iv) of Madhya Pradesh District Mineral Foundation Rule 2016, the entire area of Madhya Pradesh State is accepted as mining effected area.

The mining affected areas of Madhya Pradesh includes Sidhi, Singrauli and Shahdol.

This information was given by Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Rajya Sabha on Monday.