Parliamentary Panel Raises Alarm Over DMF Fund Misuse

A parliamentary panel has raised concerns regarding the misuse of District Mineral Foundation (DMF) funds in several states. The funds, intended for the welfare of mining-affected areas, have reportedly been diverted to unauthorized uses. Authorities have been urged to penalize such diversions to uphold the mining act's objectives.

A parliamentary panel has sounded the alarm about the misappropriation of District Mineral Foundation (DMF) funds across various Indian states. These funds are supposed to support communities affected by mining operations but have allegedly been used for unauthorized purposes.

The DMF, a statutory fund under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), is designed to ensure fair distribution of resources. However, according to the Standing Committee on Coal, Mines and Steel, there have been numerous incidents where DMF money has been rerouted to state treasuries, Chief Ministers' Relief Funds, and other state-level schemes.

The committee criticized these actions as violations of the mining act, emphasizing that they undermine the DMF's primary purpose. The panel recommended penalties for inappropriate transfers, stressing the importance of adhering to the fund's original mandate. Currently, DMFs operate in 645 districts across 23 states, with substantial funds collected and numerous projects approved.

(With inputs from agencies.)