Monthly collections in District Mineral Funds (DMF) have recovered significantly from their lockdown lows, with the gap between collections during 2020 and 2019 narrowing by September-end.
According to data shared by the Ministry of Mines, country-wide DMF collections last month stood at ₹718.46 crore, up from ₹417.29 crore in May, when the country was in the throes of the Covid-19 lockdown.
But compared to the ₹770.99 crore accrued in September 2019, the collections trailed by 6.81 per cent year-on-year.
Under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), mining companies have to make a contribution for the development of districts where mining activities take place, over and above their royalty payments.
These DMF collections, therefore, are directly linked to the country’s mineral output.
The amount is accumulated in funds controlled by individual District Mineral Foundations.
Arriving at the amount
For mining leases granted on or after January 12, 2015, an