District Mineral Foundation Trust – Sri Sathya Sai District- AP






Objectives of the DMF

  1. The Government of India, Ministry of Mines vide Order No: 16/7/2015-M.VI(Part), dt: 16.09.2015 has framed the Pradhan Manthri Khanij Kshetra Kalyan Yojana to implement District Mineral Foundations so as to ensure that, the persons and the areas affected by Mining related operations have to be benefited by the Mineral wealth in their regions to improve their standards of living.
  2. The Government of A.P. vide G.O.Ms.No: 36, I&C(M.II) Dept, dated: 14.03.2016 made the Andhra Pradesh District Mineral Foundation Rules 2016.
  3. To work for the interest and benefit of persons and areas affected by mining related operations
  4. To utilize the funds accruing to the DMF for the creation and improvement of Physical & Social Infrastructure for the benefit of affected areas and families.
  5. To ensure that the needs of the affected areas and families are addressed from time to time; and
  6. To ensure effective coordination and flow of information between the village level committee, gramsabha, MRO/MDO offices and the Governing Council for proper decision making; 


Composition of the District Mineral Foundation Trust – Sri Sathya Sai

The Collector and District Magistrate, Sri Sathya Sai vide   Gazette Notification No’s:  46 & 28,dt: 30.03.16 & 17.02.17 has constituted  the Governing Council with the following members, namely:—


The Collector & District Magistrate, Sri Sathya Sai

Chairperson & Managing Trustee


Joint Collector, Sri Sathya Sai



District Tribal Welfare Officer, Sri Sathya Sai



Project Director, DRDA, Sri Sathya Sai



District Medical & Health Officer, Sri Sathya Sai



Joint Director of

Animal Husbandry, Sri Sathya Sai



Joint Director of Agriculture, Sri Sathya Sai



Superintendent Engineer, Panchayat Raj, Sri Sathya Sai



Superintendent Engineer, Rural Water Supply, Sri Sathya Sai



Superintendent Engineer, Tribal Welfare, Sri Sathya Sai



Superintendent Engineer, Irrigation, Sri Sathya Sai



District Educational Officer, Sri Sathya Sai



Project Officer, RVM, Sri Sathya Sai



General Manager, District Industries Center, Sri Sathya Sai



Chief Executive Officer, Zilla Praja Parishad, Sri Sathya Sai



District Panchayat Officer, Sri Sathya Sai



Deputy Director of Mines & Geology, Sri Sathya Sai

Member Convener


Assistant Director of Mines & Geology, Sri Sathya Sai




Two representative of the lessees to be nominated by the  District Collector



Two Women representative of the self help groups to be nominated by the District Collector



As per G.O Ms.No:73, Industries & Commerce(M.III) Department Dt: 02.11.2021 and Letter No: 13664/P-DMF/2015 Director of Mines and Geology, Ibrahimpatnam the government as decided  to amend the District Mineral Foundation Rules, 2016 incorporation Certain rules regulating the composition of Governing Council and managing committee of District  Mineral Foundation duly including MPs/MLAs/MLCs in said council of respective district.


Power and Functions of the Governing Council:


  1. The council shall meet one every Quarter in a Financial Year.
  2. Quorum for the Council shall be 50% of the members
  3. Management and day to day functioning of the Trust
  4. Prepare and maintain the list of directly and indirectly affected areas by mining related operations.
  5. Approve the list of beneficiaries identified in the manner as specified in Part-XI.
  6. Approve the master plan or perspective plan;
  7. Guide the gramsabhas in the district by deciding the priority areas and sectoral allocations;
  8. Monitor and supervise the activities undertaken in scheduled areas;
  9. Ratify the appointment of auditors and approve annual reports;
  10. Monitor the proper functioning of the Trust;
  11. Approve the annual budget, audit report and annual plan of the Trust;
  12. Award contracts & works and sanction the payment;
  13. Grant administrative sanction for projects, release and disburse the Trust Fund;
  14. Appoint & Remove staff taken on outsourcing basis;
  15. Supervision of execution of contracts and works, and matters incidental thereto;
  16. Maintenance of proper books of accounts;


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:


  1. An amount equivalent to 30% of Royalty / S.F. if the lease has not been granted through auction.
  2. 10% of the Royalty / S.F. as fixed by the Central Government if the lease has been granted through auction; and
  • Any other voluntary contribution which is exempted under section 80 (G) of the Income Tax Act 1961.
  1. 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.


  1. 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.
  2. 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 and 10-25 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 be accepted 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.

DMFT Andhra Pradesh Guidelines

DMF 02 (1)