Contribution to DMF and Procedures to be followed

Contribution to the District Mineral Fund

All holders of both Major& Minor minerals leases shall, in addition to Royalty / Seigniorage Fee pay to the District Mineral Foundation:

  • An amount equivalent to 30% of Royalty / S.F. if the lease has not been granted through auction.
  • 10% of the Royalty / S.F. as fixed by the Central Government if the lease hasbeen granted through auction; and
  • Any other voluntary contribution which is exempted under section 80 (G) of the Income Tax Act 1961.
  • The amount under sub-rule (a) and (b) shall become payable and be paid on the same day on which such royalty was payable to the Government.


  • The Government vide G.O.Ms.No: 30, I&C(Mines-II) Dept, dt: 16.02.17 has fixed the 12.5% towards DMF amount on the Seig. Fee in respect of Granite minerals.
  • The Government vide G.O.Ms.No: 36, I&C (Mines-II) Dept, dated 14.03.2016 has fixed the 30% towards DMF amount on the Royalty / Seig. Fee for other minerals.


Procedure to be followed to identify the list of Affected Areas & Beneficiaries

  1. The Government vide G.O. Ms. No. 1, Ind. & Com. (M-II) Dept., dt. 03.01.2017 has declared 10 km radius from the periphery of mines / mining clusters as directly affected area and10-25 km radius as indirectly affected area
  2. A Village Level Committee shall be formed by Gram Sabha consisting of 5 members to prepare List for Gramsabha’s approval
  3. Village Level Committee shall have due representation from Women, SC and ST communities having not more than 1 member from each category;
  4. The Gramsabha presided over by the Sarpanch shall consider all claims for inclusion or exclusion from the list of beneficiaries/areas, before communicating the List to the Governing Council;
  5. On receipt of the List from Secretary, Gram Panchyat, the Governing Council after duly verifying shall communicate the list for Final Approval of Gramsabha.
  6. Within 7 days of the receipt of the Final List from the Governing Council, gramsabha shall duly publish the Final List in the Panchayat Office.
  7. The final list of beneficiaries communicated by the gramsabha shall beaccepted by the Governing Council and the Final List shall be kept in the DMF website.

Utilization of Funds of the DMF

The funds will be utilized for the creation and improvement of physical and social infrastructure for the benefit of affected areas and affected families.

2% – Director of Mines & Geology to meet the expenditure on Information

Technology for E-Governance.

3%– District Mineral Foundation shall meet the expenditure from this fund

55% of the funds may be utilized Sector Wise as follows:

  1. Drinking water supply including establishment of centralized purification systems, water treatment plants, Water Tanks, permanent/temporary water distribution network including standalone facilities for drinking
  2. Setting up of effluent treatment plants, mine drainage system, Investment in mine pollution prevention technologies in working or abandoned mines, and establishing air, water & surface pollution control mechanisms required for sustainable mine development.
  3. Creation of primary / secondary health care facilities in the affected areas, by setting up of primary health centers and hospitals with necessary staff, equipment and medical supplies.
  4. Treatment of mining related illness & diseases, by utilizing expertise of National Institute of Miners Health
  5. Implementation of Group Insurance Scheme for mining affected persons;
  6. Construction of school buildings, Additional class rooms, Laboratories, Libraries, Art and crafts room,
  7. Prevention and Cure for maternal and child health care, malnutrition, infectious diseases, etc.
  8. Financial Assistance shall be released to the affected persons suffering from serious diseases or ailments or physical disorders viz., silicosis, caused due to mining operations.
  9. Skill development for livelihood support, income generation & economic activities for local eligible persons.
  10. Collection, transportation &disposal of waste, cleaning of public places and provision of proper drainage

40% of the funds may be utilized for creation of:

  1. Building Roads, Bridges, and Waterway projects in the affected areas.
  2. Developing alternate sources of irrigation, adoption of suitable and advanced irrigation techniques.
  3. Development of alternate sources of energy including micro-hydel and rainwater harvesting systems.
  4. Development of orchards, integrated farming and economic forestry and restoration of catchments.
  5. Measures for enhancing environmental quality in mining district.

Funds Release:

          Release of funds will be made in installments 1st installment will be released after execution of the works and intimation received from the Executing agency. 2nd installment funds will be released after completion of work. No cash payments and payment shall be made only through CFMS only.

          Final bill will be sanctioned after submission of Photos before and after work verification of measurement book, quality control certificate and work completion certificate from the executing agency only.