Tamil Nadu District Mineral Foundation Rules 2025 Mandate 70% of DMF Funds for Directly Affected Areas

Key facts

• The Tamil Nadu District Mineral Foundation Rules, 2025 supersede the 2017 rules.
• A minimum of 70% of the District Mineral Trust Fund must be spent on directly affected areas and high-priority sectors such as drinking water supply and health care.
• Mining lease holders who contravene contribution norms face a penalty equal to a one-time payment of the contribution plus 12% interest for the contravention period.
• The District Collector concerned will be the chairperson of the District Mineral Foundation Trust, Managing Committee, and Governing Council.
• All royalty or seigniorage fee payments must include the Trust Fund component; no such fee shall be accepted without the mandatory contribution.
• Districts with annual collections of ₹10 crore or more shall maintain an endowment fund of up to 10% of annual receipts to create sustainable livelihoods in areas where mining has ceased.