Centre launches targeted DMF push for aspirational districts initiative

Business Standard

09-07-2025

The Union Ministry of Mines on Tuesday launched a focused programme to align District Mineral Foundation (DMF) funds with India's Aspirational Districts initiatives, marking a major shift toward targeted welfare delivery in mining-affected regions.
Union Coal and Mines Minister G Kishan Reddy announced that DMFs currently hold over Rs 32,000 crore in Aspirational Districts. He directed district collectors to ensure impactful and timely utilisation of these funds.
Speaking at the National DMF Workshop organised in New Delhi, Reddy urged states to implement the new DMF–Aspirational Districts convergence programme in '100 per cent saturation mode' across key areas such as health, nutrition, education, agriculture and rural infrastructure. 'District collectors have to prepare an action plan and spend the funds on impactful projects in a time-bound manner,' the minister said.
The Centre's push for convergence seeks to align DMF planning and implementation with central flagship schemes such as Jal Jeevan Mission, Ayushman Bharat and the Pradhan Mantri Awas Yojana, in line with guidelines under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
'DMF has to be seen as a development mission,' said Reddy. Through project status tracking, transparency will be ensured. With forest-based livelihood investments, DMF implementation must advance inclusive and sustainable development, he added.
Highlighting India's broader developmental trajectory, the minister noted that between 2011 and 2023, over 17 crore people came out of extreme poverty. Today, India is not only the fourth-largest economy in the world but also the fourth most equal country globally, he said. This change, he added, is the result of inclusive development initiatives launched over the last 11 years. The establishment and vision of DMFs reflect those efforts.
The Union minister said over Rs 1 trillion has been deposited in DMFs since their inception, following the 2015 amendment to the Mines and Minerals (Development and Regulation) Act. Of this, Rs 90,000 crore has been allocated toward various development projects.
However, Reddy also flagged serious implementation concerns. 'In many states, funds have been allocated, but projects remain incomplete. DMF funds are being transferred from the affected districts to others,' he said, urging officials to strictly follow guidelines and ensure the funds benefit directly impacted communities.
Mine closures
Addressing mine closure issues, the minister revealed that although 143 coal mines have been decommissioned, closure activities remain pending. 'District collectors must take responsibility. You must catch the company and ensure that closure work is implemented. For the first time, the government is itself spending money on mine closures,' he said.
The workshop, held at the Scope convention centre in New Delhi, brought together state nodal officers, DMF district representatives, and officials from various ministries. The event also saw the launch of operational guidelines for the convergence of DMF with the Aspirational Districts and Aspirational Blocks Programme.
Simultaneously, an exhibition of Self-Help Group (SHG) products supported by DMF funds was inaugurated at Handloom Haat, Janpath, where women from mining-affected districts showcased their work. The exhibition will remain open to the public till July 15.