DISTRICT MINERAL FOUNDATION TRUST
Tamil Nadu is endowed with substantial resources of Major Minerals viz Lignite, Limestone, Marl, Graphite, Magnesite, Garnet, Ilmenite, Rutile, Sillimanite, Zircon and Monazite, etc and Minor Minerals viz Roughstone, Granite, Lime kankar, Quartz, Feldspar, Silica Sand, Quartzite, Sandstone, Dunite, Fire Clay, Ball clay, Pebbles, Sand, Gravel, Laterite, etc. Mining /quarrying of mineral resources have contributed richly to the industrial, infrastructural and economic growth of the State.
The mining related operations affect the adjoining areas and vulnerable population in those areas. In order to give them special care and attention in an organized and structured manner and to ensure that these areas and persons affected by mining related activities are benefitted by the mineral wealth in their regions and also to improve the livelihood of the people and areas affected by the mining operations, as mandated by Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957 and the Tamilnadu District Mineral Foundation Rules, 2017 framed under the Section 15(4) of the MMDR, Act the District Mineral Foundation Trust have been established in the State.
Establishment of DMFT in the State
The Government has established a District Mineral Foundation Trust in all districts of the State except Nilgiris for the welfare of the people in the areas affected due to mining activities. Each District Mineral Foundation Trust has their own District Mineral Foundation Trust fund accrued from the mandatory contributions paid by the mining/quarrying lessees while transporting minerals from the leasehold areas.
Lessees are required to contribute 30% of the royalty/seigniorage fee additionally, for leases granted prior to 12.01.2015 and 10% additionally for leases granted subsequently, as per Tamilnadu District Mineral Foundation Rules, 2017. The fund is utilized for the implementation of the high Priority and other priority items as mentioned in the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) for the welfare of the mine affected areas and people. Many projects have been implemented using the District Mineral Foundation Trust Fund in high priority areas viz. education, drinking water, health, sanitation, welfare of the aged and differently abled people, welfare of women and children, skill development, environment and pollution control and other priority areas viz. infrastructure, irrigation development and energy & watershed development. A total of 3520 projects have been taken up at a cost of Rs.1282.41 crore up to Dec 2025.
PMKKKY
The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) are being implemented by the District Mineral Foundations (DMFs) of the respective State using the funds accruing to the DMF. The overall objective of PMKKKY scheme will be
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To implement various developmental and welfare projects/programs in mining affected areas, and these projects/ programs will be complementing the existing ongoing schemes/projects of State and Central Government
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To minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and
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To ensure long-term sustainable livelihoods for the affected people in mining areas.
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As per the new PMKKKY guidelines, 2024 70% of the fund shall be utilized in directly affected areas and 30% of the fund can be utilized indirectly affected areas.
Overall Year Wise DMFT Fund
Exploring District-wise Data
Sector wise project details as on 31.12.2025
| Sl No | Name of the Sector | Total Projects | Sanctioned Amount in Cr. |
|---|---|---|---|
| 1 | Drinking Water | 608 | 387.514 |
| 2 | Education | 591 | 113.748 |
| 3 | Environment preservation and pollution control measures | 45 | 17.744 |
| 4 | Health | 711 | 106.402 |
| 5 | Sanitation | 170 | 12.526 |
| 6 | Skill Development | 45 | 106.402 |
| 7 | Welfare of aged and disabled people | 115 | 1.830 |
| 8 | Welfare of Women and Children | 133 | 17.900 |
| Total | 2418 | 664.129 | |
Drinking Water
608
387.514 Cr
320.223 cr.
Skill Development
45
6.465 Cr
5.606 cr.
Education
591
113.748 Cr
79.140 cr.
Welfare of Women and Children
133
17.900 Cr
7.401 cr.
Health
711
106.402 Cr
80.657 cr.
Sanitation
170
12.526 Cr
8.680 cr.
Environment preservation and pollution control measures
45
17.744 Cr
5.129 cr.
Welfare of aged and disabled people
115
1.830 Cr
1.753 cr.
Sector wise project details as on 31.08.2025
| Sl No | Name of the Sector | Total Projects | Sanctioned Amount in Cr. |
|---|---|---|---|
| 1 | Energy and watershed development | 43 | 13.218 |
| 2 | Irrigation | 67 | 264.635 |
| 3 | Others | 47 | 4.642 |
| 4 | Physical Infrastructure | 945 | 335.790 |
| Total | 1102 | 618.286 | |
Irrigation
67
264.635 Cr
208.100 cr.
Energy and watershed development
43
13.218 Cr
9.800 cr.
Physical Infrastructure
945
335.790 Cr
210.277 cr.
