Mining is a primary economic activity that feeds essential raw materials requirements of the Manufacturing sector. Not only does it employ a large mass, but it also uplifts the quality of life and social stature of the local community by way of creating social infrastructure and through numerous welfare activities. Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) is one of the prominent public welfare programmes, which recognises mining affected community as benefit sharing partner through a dedicated welfare fund enshrined under District Mineral Foundation (DMF). DMF aims to remove inequality and ensure the socio-economic development of mining affected communities through a non-profit trust.

At least 60% of DMF funds are meant for addressing high priority development areas, such as drinking water supply, environmental preservation, healthcare, education, women and children welfare, skill development and sanitation. Other priority areas are physical infrastructure, irrigation, energy and watershed development and any other measures for enhancing environmental quality in mining districts.

The Indian Cement Industry contributes over INR 800 crore each year towards DMF funds through 30% equivalent of royalty for leases granted before 2015 and 10% equivalent of royalty from leases granted after 2015. Until last year, upto January 2021, cumulative DMF collection through the mining sector was reported at INR 45095.8 crore, out of which only 45% was utilised. The table below captures a State wise position of DMF collection and utilisation until January 2021.