Union Coal and Mines Minister G. Kishan Reddy on Wednesday, June 10, 2026, highlighted that the District Mineral Foundation (DMF) has collected over ₹1.25 lakh crore and sanctioned more than ₹1 lakh crore for development across mining-affected regions under the Narendra Modi government over the past 12 years.

Context

In his post on X, Kishan Reddy stated that the Modi government has ensured that 'the benefits of mineral development reach people living in mining-affected regions.' He cited 2.73 lakh projects supported across healthcare, education, drinking water, and community welfare as evidence of the fund's reach. The minister attributed the outcomes to 'transparent implementation and targeted interventions' that are 'transforming resource-rich regions into engines of inclusive growth and progress.'

Policy Backdrop

The District Mineral Foundation is a statutory trust mechanism created under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, which made contributions by mining lease holders to district-level welfare funds mandatory. Alongside it, the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), launched in September 2015, provides the operational framework guiding how DMF funds are deployed, with priority given to high-impact social infrastructure sectors. The National Mineral Policy 2019 further reinforced the principle of inclusive growth and local community participation in mining governance.

The DMF model represents a structural shift in mineral governance since 2014, routing a portion of natural resource revenues directly into district-level social spending rather than into general state budgets. Mineral-rich states such as Odisha, Jharkhand, and Chhattisgarh have historically accounted for the largest share of DMF collections, given the concentration of active mining leases in those regions.

Stakeholders and Impact

The primary beneficiaries of DMF spending are communities living in and around active mining zones — populations that have historically borne the environmental and social costs of extraction with limited direct benefit from royalty revenues. District administrations act as implementing agencies, while mineral lease holders are the mandatory contributors. The Ministry of Mines, which Kishan Reddy oversees alongside the Coal portfolio, coordinates DMF guidelines and monitors utilisation across states.

The scale cited — over 2.73 lakh projects sanctioned — spans a wide range of interventions, from primary health centres and school infrastructure to clean drinking water supply and community halls. The spread across sectors reflects the PMKKKY mandate that prioritises basic human development indicators in regions where mining activity is concentrated.

What's Next

State-level DMF annual reports and performance audits by the Comptroller and Auditor General (CAG) are expected to be tabled during the 2026-27 legislative sessions, which will provide independent assessments of fund utilisation quality and project completion rates. Any proposed amendments to MMDR rules on contribution rates or eligible project categories will be closely watched by district administrations and mining-sector stakeholders alike. The government's continued emphasis on DMF milestones signals that the fund's performance will remain a key metric in the political narrative around mineral-sector governance ahead of state elections in several mining-belt constituencies.