7-Nov-2022: District Mineral Foundation Constituted in 622 Districts so far

As per the latest figures of Ministry of Mines, District Mineral Foundation (DMF) has been constituted in 622 Districts spread across 23 States of India. The concept of DMF was introduced through amendment in Mines & Minerals (Development & Regulation) MMDR Act, 1957. The amended Act inter –alia introduced section 9 B which provides for establishment of DMF, a trust as non- profit body, in all districts affected by mining related operations. The objective is to work for the interest and benefit of people and areas affected by mining.

Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is being implemented through the funds collected under DMF. Till September this year, Rs. 63534.07 crore stands allocated and Rs. 37422.94 crore has been spent. Out of 2,52995 projects sanctioned under the Yojana  1,33144 projects have been completed so far.

11-Sep-2021: Exemption of District Mineral Foundations (DMF) from Income Tax

The Union Mines, Coal and Parliamentary Affairs Minister, Shri Pralhad Joshi has thanked Hon’ble Prime Minister Shri  Narendra Modi for exempting 165 District Mineral Foundation Trusts (DMF), from Income Tax payment. Through the amendment in Mines & Minerals (Development & Regulation) (MMDR) Act, in 2015, Government of India has made provision for establishment of District Mineral Foundation in all the districts affected by mining. The object of the District Mineral Foundation is to work for the interest and benefit of persons, and areas affected by mining related operations in such manner as may be prescribed by the State Government. So far, DMFs have been set up in 600 districts in 22 States in the country which have framed DMF rules.

Shri Joshi has also thanked the Union Finance Minister Smt. Nirmala Sitharaman. A Gazette notification has been issued to this effect yesterday by Ministry of Finance (Department of Revenue) (Central Board of Direct Taxes). Ministry of Mines has taken up with Ministry of Finance regarding issuance of notification for Income-tax exemption u/s 10(46) of the Income-tax Act, 1961 in respect to the District Mineral Foundations.

Ministry of Finance has taken measures to get the DMF trust exempted from Income Tax. Section 10(46) of the Act was amended by Finance Act 2018 so that all the DMF Trusts could be notified as ‘Class of Authority’. Accordingly, Ministry of Finance, Department of Revenue on 10.9.2020 notified 151 ‘District Mineral Foundation Trust’ and on 10.9.2021 notified 165 DMFs as ‘class of Authority’, in respect of the income arising to DMF.  Hence Total 316 District Mineral Foundation Trust have been notified as ‘class of Authority’ in respect of the income arising to DMF on account of contributions by lease holders to DMF as per the MMDR Act, interest on late payment of DMF contributions by miners and such other specified collections.

3-Oct-2019: Rajasthan to create pneumoconiosis fund with DMF money

Rajasthan has announced the creation of a Pneumoconiosis Fund, which will be majorly financed by money from the District Mineral Foundation (DMF). This Fund will be used to finance a comprehensive policy on the disease released by the Rajasthan government on October 3, 2019.

Pneumoconiosis, a lung disease, mostly affects workers who work in the mining and construction sectors and deal with soil, silica, coal dust and asbestos. The disease includes asbestosis, silicosis and coal workers' pneumoconiosis.

The aim of the policy is to streamline the strategy to deal with pneumoconiosis. For the first time, government is looking at a strong preventive mechanism and better assistance to the victims and their families.

The Fund will be operating under this department. It will include pension for patients and their families after the patient’s death and their inclusion in the state’s social security schemes, which will be over and above the compensation paid.

Rajasthan is one of the leading mining states of India, with a distinction of having more than 33,000 mine leases, the highest in the country. Most of these are sandstone mines and quarries.

It is also the state with a high prevalence of pneumoconiosis, including silicosis. According to data from the state silicosis portal, more than 55,000 cases of silicosis have been registered for medical verification across all of Rajasthan’s districts from 2016 till date.

According to a 2018 report by the Comptroller and Auditor General of India, the number of deaths due to silicosis had increased in Rajasthan from 1 in 2013-14 to 235 in 2016-17.

Various mine workers organisations and unions had been demanding a comprehensive framework to address the issue and provide due compensation to the patients over the last decade.

With the institution of DMF under the Mines and Minerals (Development and Regulation) Amendment Act, the state found the resources to address the issue comprehensively.

Non-profit DMF trusts have been established in every mining district of India to “work for the interest and benefit of people and areas affected by mining related operations”.

Earlier, the state government was just providing a compensation of Rs 4 lakh to the silicosis patient, of which Rs 1 lakh was paid to him / her and Rs 3 lakh to the family after the patient’s death.

This was paid through the Rajasthan Environmental Health Administration Board (REHAB), constituted under the Rajasthan Environment and Health Cess Rules, 2008.

After DMF was instituted, REHAB was discontinued. The compensation was revised to Rs 5 lakh (Rs 2 lakh to the patient and Rs 3 lakh to the family after the patient’s death).

DMF will be one of the biggest components of the Pneumoconiosis Fund. It will also bring in convergence of other available funds such as Building and Other Construction Workers (BOCW) Welfare Fund, the state budget, and Corporate Social Responsibility (CSR).

The state level fund has been created so that pneumoconiosis patients can be helped even in districts where DMF funds are not substantial. In Rajasthan, districts like Bhilwara, Rajsamand, Udaipur, Chittorgarh and Ajmer have a sizeable DMF accrual each year ranging from Rs 250 crore to Rs 100 crore.

Prevalence of pneumoconiosis, however, reaches beyond these districts to others such as Bharatpur, Dholpur, Sirohi and Karauli, where massive quarrying activity is ongoing. These districts, in fact, report the highest number of cases along with Bhilwara and Ajmer.

DMF funds were already being used at the district level for compensation to silicosis patients. However, permissions from the governing body were required each time a case had to be added. Also, there are other districts where DMF funds are not available. Hence, Rajasthan is creating a state fund where different resources will be converged and disbursement can be made as required.

The proportion of contribution from various funds will be decided in the coming days.

Prevention and rehabilitation: The policy recognizes prevention as a major focus because pneumoconiosis, once contracted, is a terminal illness. For this, all mines and industries having dust hazards will be registered and notified as hazardous and brought under a tight regulatory framework to ensure protective equipment and dust suppression measures.

For early detection of cases, training of health workers and doctors, placing better screening systems at health centres will be ensured. So far, most of the silicosis cases were given treatment for tuberculosis, leading to eventual detection in advanced stages. If early detection is ensured, the chances of survival are good.

The policy also looks at a comprehensive patient rehabilitation and pension for patients and their families. It introduces pension for patients and after their passing, to their families irrespective of income criteria. It also calls for creating livelihood opportunities for silicosis patients and their kin.