DISTRICT MINERAL FOUNDATION - ECONOMY
NEWS: Recently, the Standing Committee on Coal, Mines and Steel, raised serious concerns regarding the diversion of District Mineral Foundation (DMF) funds in multiple States.
WHAT’S IN THE NEWS?
Findings of the Parliamentary Panel on DMF Fund Misuse
1. Concern Over Diversion:
The Parliamentary Committee expressed serious concern regarding the repeated diversion of District Mineral Foundation (DMF) funds in multiple States, based on findings shared by the Ministry of Mines.
2. Unlawful Transfers:
It was reported that DMF funds were being transferred to State treasuries, Chief Minister’s Relief Funds, and other unrelated State-level schemes, deviating from their intended purpose.
3. Violation of MMDR Act:
The panel highlighted that these transfers violate both the letter and spirit of the Mines and Minerals (Development and Regulation) Act, 2015, which had mandated the creation of DMFs as dedicated funds for mining-affected communities.
4. Purpose Undermined:
The Committee emphasized that these practices undermine the core objective of DMFs — which is the welfare and development of people and regions affected by mining operations.
5. Recommendation for Penalties:
It recommended that penalties be imposed on District Mineral Foundations where fund diversion is detected, to act as a deterrent against unauthorized fund use.
6. Monitoring and Updates:
The Ministry of Mines has issued directives to curb misuse, and the Committee has insisted on receiving regular updates about any instances of DMF fund diversion or misuse.
Fund Utilization Guidelines Under PMKKKY
1. High-Priority Sectors – 70% of DMF Funds:
A minimum of 70% of DMF funds must be allocated to the following critical areas:
• Drinking water supply, housing, and sanitation
• Environmental preservation and pollution control
• Healthcare, education, and welfare of women and children
• Welfare of the elderly and persons with disabilities
• Skill development, agriculture, and animal husbandry
2. Other Priority Sectors – Up to 30% of DMF Funds:
The remaining up to 30% of the funds may be used for:
• Physical infrastructure development
• Irrigation facilities and watershed development
• Energy access projects
• Other measures to enhance environmental quality in the mining district
🔹 Funding Mechanism of DMFs
1. Contribution by Concession Holders:
DMFs are funded by contributions from leaseholders of major and minor mineral concessions operating in the district.
2. Prescribed Rates:
The rate of contribution is either prescribed by the Central Government or notified by State Governments, depending on the type of minerals and governance structure.
Jurisdiction and Governance of DMFs
1. State Oversight:
The State Governments have jurisdiction over the operation, composition, and functioning of DMFs.
2. Rulemaking Authority:
States are empowered to formulate rules regarding the structure, implementation mechanisms, and oversight of DMFs.
3. District-Level Management:
DMF funds are managed at the district level, enabling a targeted, bottom-up approach to development in mining-affected areas.
Current Status of DMFs (As of January 2025)
1. Coverage Across India:
DMFs have been established in 645 districts spanning 23 States in India.
2. Total Funds Collected:
A cumulative total of ₹1,04,250.74 crore has been collected under DMF accounts.
3. Projects Sanctioned:
Approximately 3.69 lakh projects, with a total value of ₹88,483.24 crore, have been sanctioned under DMFs.
4. Project Completion Status:
Of the total sanctioned projects, 2.08 lakh projects have been completed, with a total expenditure of ₹55,923.65 crore incurred.
About District Mineral Foundations (DMF)
• The DMFs are non-profit trusts set up in mining districts by the respective State Governments.
• The fund is one of the largest financial resources for immediate, medium, and long-term interventions to improve the lives and livelihoods of people in the mining-affected areas.
• Minerals: The fund covers coal, lignite, major minerals such as iron, manganese, and bauxite, and minor minerals.
• Coverage: They have been established in 645 districts across 23 States.
• Legal Act: DMFs are set up under Section 9B of Mines and Minerals (Development and Regulation) Amendment Act, 2015
• Objective: To alleviate poverty and deprivation in mining affected districts and work for their interest and development.
• Funds Source: The DMF funds come from statutory contributions by mining leaseholders.
• Mining Companies contribute directly to the district’s DMF Trust, paying 10% of the royalty for leases granted after January 12, 2015, and 30% for leases granted earlier.
• State Government Role: The State governments are required to develop and notify the State DMF Rules outlining the governance structure of the DMFs, fund utilisation priorities, and mechanisms for planning, monitoring, and implementation.
• The operation and composition of DMF comes under the jurisdiction of the State Governments.
• The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is implemented through funds accrued to the DMFs.
Source: https://www.thehindu.com/news/national/parliamentary-panel-expresses-concern-over-diversion-of-funds-of-district-mineral-foundation-in-several-states/article69419116.ece
SHORTNEWS:
1.MOU SIGNED BETWEEN THE SUPREME COURTS OF INDIA AND NEPAL
Context: On April 7, 2025, the Supreme Courts of India and Nepal signed a Memorandum of Understanding (MoU) to enhance judicial cooperation.
Chief Justice of India (CJI) described the agreement as “lighting a new torch” in India-Nepal judicial relations.
MoU Highlights
• Collaboration in Legal Exchange:
• Formalizes mechanisms for jurisprudential exchanges which aims to promote:
Judicial exchanges
Joint research
Training programmes
Seminars and mutual visits
• Inspiration from Each Other’s Jurisprudence:
• India drew inspiration from Nepal’s landmark decision on LGBTQ rights and privacy, which contributed to decriminalizing Section 377 of the Indian Penal Code.
• Nepal adopted India’s “Basic Structure Doctrine” for constitutional interpretation.
• Environmental Jurisprudence:
• Recognizes Nepal’s innovative approach to “ecocide” and the fundamental right to a clean and healthy environment.
A BEAR MARKET
1.NEWS: The S&P 500 (stock market index that tracks the performance of the largest 500 publicly traded US companies) has briefly entered bear market territory for the first time since 2022.
• Reason: The downfall witnessed in global markets is attributed to President Trump’s global tariffs.
About Bear Market
• A bear market is a Wall Street term for a sustained market downturn ie. when a stock index closes 20 percent from its last peak state.
• A bear market (or for that matter, all types of market decline) takes place when investors are more motivated to sell than to buy stocks.
• Market Correction: A bear market is different from a market correction which occurs when there is a decline of at least 10% or more.
• Reasons for Market Decline:
• A weak or slowing economy
• The anticipation of an economic slowdown
• Bubble Burst: Investor sentiment that the market is too hot and prices too high.
• Unintended Events: Events such as wars, oil supply shocks, pandemics etc can also spook investors, leading to a dip in the market.
• Consequence:
• Bear markets are sometimes precursors to recessions often leading to job losses as economies contract
• It leads to a fall in speculative demand among residents, thereby reducing the aggregate cash flow of the capital sector in an economy.
2.PROJECT VARSHA
NEWS: India is building a new naval base for nuclear submarines and warships near Rambilli village, about 50 km from Visakhapatnam, Andhra Pradesh under Project Varsha.
About Project Varsha
• Key Features of the Base
• Includes underground tunnels and submarine pens for stealth operations.
• Can accommodate up to 12 nuclear submarines.
• Provides protection against aerial surveillance and satellites.
Built close to BARC Atchutapuram, giving access to advanced nuclear infrastructure.
• Enables quick access to important sea routes like the Strait of Malacca.
• Strategic Importance
• To strengthen India’s maritime strike power in the Bay of Bengal and the broader Indian Ocean Region (IOR).
• Counters China’s dual-use naval bases such as:
Hambantota in Sri Lanka
BNS Sheikh Hasina in Bangladesh
3.TRUTHTELL HACKATHON
NEWS: The TruthTell Hackathon initiative has been initiated by the government to focus on creating advanced AI-based tools.
About TruthTell Hackathon
• Aim: To develop innovative AI-powered solutions to combat misinformation in live broadcasting, addressing the rapid spread of false information in today’s digital media landscape.
• It is part of the Create in India Challenge – Season 1 under the World Audio Visual & Entertainment Summit (WAVES) 2025.
• Organized with support from:
• India Cellular & Electronics Association (ICEA)
• Ministry of Information & Broadcasting (MIB)
• Ministry of Electronics & IT (MeitY)
• IndiaAI Mission
4.JAYA SRI MAHA BODHI
NEWS: During his recent trip to Sri Lanka, PM Narendra Modi visited the Jaya Sri Maha Bodhi tree at Anuradhapura.
• He described the tree as a “living symbol of peace, enlightenment, and spiritual continuity.”
About the Jaya Sri Maha Bodhi Tree
• It is a Bo tree (Ficus religiosa, known as Pipal in Hindi) believed to have grown from a branch of the original Bodhgaya tree under which Buddha attained enlightenment.
• The branch was brought to Sri Lanka by Sanghamitta, daughter of Mauryan Emperor Ashoka and a Buddhist nun.
• It survived acts of vandalism in 1929 and a violent attack by LTTE militants in 1985.
Cultural and Religious Significance
• Sanghamitta’s arrival with the tree is celebrated as the Uduvapa Poya festival every December.
• Anuradhapura is a UNESCO World Heritage Site, once flourishing for over 1,300 years.
Sanghamitta’s Mission to Sri Lanka
• Sent by Emperor Ashoka following the Third Buddhist Council to spread Buddhism.
• Mahinda (Ashoka’s son) first converted King Devanampiya Tissa, leading to Sanghamitta’s invitation to ordain women.
About the Mahabodhi Tree in Bodhgaya
• The present tree is which was earlier destroyed several times by man-made misery and natural calamities.
• The original Bodhgaya tree was destroyed, possibly by Ashoka’s wife Tishyarakshita.
• The present tree at Bodhgaya is believed to be probably the fifth succession of the original tree to have grown from the genetic material of the original.