Government has taken complete control of the District Mineral Foundation (DMF) funds, thus negating states’ right to sanction any expenditure out of the funds accrued from mandatory contribution from mining lease holders.
Need
According to the Ministry of Mines “there are instances where a part of the funds of the DMF are being transferred to the treasury/consolidated fund of the state or state level funds,” thereby defeating the very purpose of the creation of the DMF.
The Centre also pointed out that the transfer of any part of the fund of DMF to any state level entity for its utilization ....