Thu Jan 01 18:53:31 UTC 2026: Summary:

The Tamil Nadu government has updated its District Mineral Foundation (DMF) Rules, replacing the 2017 version with new regulations implemented in 2025. Key changes include revised penalties for mining lease holders who fail to contribute to the DMF fund. Instead of imprisonment or fines, the new rules impose a monetary penalty equivalent to a one-time contribution, plus the original contribution, and 12% interest. The District Collector remains the chairperson of the DMF Trust, and a minimum of 70% of the Trust Fund must be allocated to directly affected areas for high-priority sectors. Districts collecting ₹10 crore or more annually are now required to maintain an endowment fund to provide sustainable livelihoods in areas where mining has ceased.

News Article:

Tamil Nadu Updates Mining Fund Rules, Shifts Penalties to Monetary Fines

CHENNAI, January 2, 2026 – The Tamil Nadu government has announced revisions to the District Mineral Foundation (DMF) Rules, replacing the 2017 regulations with updated guidelines focused on utilizing funds for communities impacted by mining operations. The new Tamil Nadu District Mineral Foundation Rules, 2025, which went into effect recently, aim to streamline the allocation and management of the District Mineral Trust.

A key change involves penalties for mining lease holders, composite license holders, quarry lease holders or permit holders who fail to meet their contribution obligations to the DMF fund. Under the new rules, instead of facing imprisonment or fines, violators will now be penalized with a monetary amount equivalent to a one-time contribution, in addition to the original contribution owed, plus a 12% interest charge for the period of non-compliance.

“This revision is designed to ensure consistent contributions to the Trust Fund, allowing for greater investment in areas directly affected by mining,” stated a government spokesperson.

The District Collector will continue to serve as the chairperson of the District Mineral Foundation Trust, Managing Committee, and Governing Council. The regulations mandate that a minimum of 70% of the Trust Fund be spent in directly affected areas, with a focus on crucial sectors such as clean drinking water, environmental protection, healthcare, education, and women’s welfare.

Furthermore, districts collecting ₹10 crore or more annually will be required to establish an endowment fund, capped at 10% of annual receipts, to support sustainable livelihoods in regions where mining activities have been discontinued. This fund will be instrumental in creating new economic opportunities for communities in transition.

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