Sun Apr 06 06:26:11 UTC 2025: ## Parliamentary Panel Slams Diversion of Mining Funds

**New Delhi, April 6, 2025** – A parliamentary panel has sharply criticized the misuse of District Mineral Foundation (DMF) funds in several Indian states. The panel’s report, released today, highlights numerous instances where funds designated for the welfare of mining-affected areas have been diverted to state treasuries, consolidated funds, Chief Minister’s Relief Funds, and other unrelated schemes.

The DMF, a statutory fund established under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), is intended to address the challenges faced by communities in mining regions. However, the Standing Committee on Coal, Mines and Steel found that these transfers violate the spirit of the mining act and undermine the fund’s purpose.

The committee expressed concern over the Ministry of Mines’ report detailing widespread diversion of funds. While acknowledging the ministry’s orders to prevent such transfers, the panel recommended stronger measures, including penalties for DMFs involved in misappropriation.

As of January 2025, a total of ₹1,04,250.74 crore had been collected under the DMF, funding 3.69 lakh projects worth ₹88,483.24 crore. While 2.08 lakh projects have been completed, the panel’s findings raise serious questions about the effective utilization of these significant resources. The committee urged increased oversight and accountability to ensure the DMF funds are used for their intended purpose.

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