Only seven districts have established District Mineral Foundation (DMF) offices across 50 mineral rich districts, said a survey conducted by the Centre for Science and Environment (CSE).

In its status report on the DMF, released on Thursday, the CSE noted most districts are lagging behind in making the required administrative and institutional arrangements under the DMF.

DMF was were instituted in March 2015, when the government amended the Mines and Minerals (Development and Regulation) Act (1957). According to the provisions of the DMF, miners and mining companies are mandated to provide a sum to the DMG Trust of the district where the mine is located. The sum is linked to the total royalty payment.

CSE also said that of the 50 districts they have surveyed, only 24 have indicated that their plans for utilising the DMF funds are ready. But, the actual plans were available from only 17 districts. Chhattisgarh has emerged as the State with the most progress with respect to DMF planning. Out of the nine districts surveyed there, eight have prepared DMF plans.

Total DMF collection till February 2017 stood at ₹5,800 crore. Odisha, Jharkhand and Chhattisgarh contributed 69.5 per cent of the total amount. The report also highlighted discrepancies in the allocation of DMF funds, said Srestha Banerjee, Programme Manager, Environmental Governance - Community Support Programme at CSE.

CSE has stated that in the allocation of funds from DMF, there is a big focus on construction of structures such as school buildings, but there is little focus on providing support resources.

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