The District Mineral Foundation (DMF) has been setup by the state government to benefit people in India’s mining affecting areas. It was created in 2015 by the central government through an amendment in the mines and minerals (development and regulation) Act, 1957. To balance between the role of minerals in industrialization and degrading lifestyle of mining areas, the government of Jharkhand has set up several policy decisions to utilize the royalty received for environmental and livelihood development.
The Central Government has issued a directive to the State Governments, under Section 20A of the MMDR Act, 1957, laying down the guidelines for implementation of PMKKKY and directing the States to incorporate the same in the Rules framed by them for the DMFs. Adhering to the Spirit of equality and safeguarding the fundamental rights Gumlah District Mineral Foundation (Trust) has been formed under the provisions laid in section 9(B) of The Mine and Minerals Development and Regulation (Amendment) Act, 2015 for sharing the mineral wealth with communities in the mining areas.
The formation of the trust is in synchronization with the landmark Supreme Court judgment in Samantha Vs State of Andhra Pradesh in 1997 (Popularly known as Samantha Judgement). This judgement has given a balance between the right of the state to exploit its mineral wealth and duty to safeguard the interest of people who reside in mineral rich areas.