Set clear guidelines for identifying beneficiaries of DMF: CSE

Claiming that the way states are envisioning District Mineral Foundation (DMF) is "alarming", a green body today said it should be a people-centric institution where mining affected people must be made part of the decision-making and recommended setting clear guidelines for identifying beneficiaries.
"The DMF is a benefit sharing mechanism with the people. It should be a people-centric institution where mining affected people must be made a part of the decision-making of how and where the money coming to DMF should be used.
"But the way the states are envisioning DMF is alarming," Center for Science and Environment (CSE) Director General Sunita Narain said at a Regional Media Briefing Workshop organised at Ranchi.

With reference to Rajasthan's recently released draft DMF rules, Narain said they failed to make the DMF an institution "of the people and for the people".
According to the Mine and Minerals Development and Regulation (Amendment) Act, 2015, provisions have been created for sharing the mineral wealth with communities in the mining areas by establishing DMFs. These will function in the form of a trust that would work for the interest and benefit of persons, and areas affected by mining related operations.
"There were many challenges with DMF, but we must also remain positive about the prospects. We need to make sure that DMF is developed," CSE Deputy Director General Chandra Bhushan said.

States are required to frame rules for operationalising DMFs. Rajasthan has recently put out its draft rules on DMFs and has sought comments from the public.
According to poverty estimates by the Planning Commission for 2011-2012, in the three top mining states of Chhattisgarh, Jharkhand and Odisha, the proportion of population below the poverty line is nearly 40 per cent, much higher than the national average of 21.9 per cent.
"DMF money is strictly for persons and areas affected by mining and for their social and economic upliftment. Of the total funds that DMF would receive in a year, no less than 20 per cent should be deposited in an account for future use (when mining operations are closed) as well as for emergency situations, such as natural calamities," recommended the body.