Andhra Pradesh Government Directs District Collectors to Adopt Five-Year Action Plans for DMF Funds
In a significant move to enhance the impact of District Mineral Foundation (DMF) funds, the state government of Andhra Pradesh has issued a directive requiring district collectors to develop and execute works under a minimum five-year action plan. This initiative aims to prevent the allocation of substantial sums to temporary or short-term projects, which could undermine the fund's primary objective of providing sustainable development support to mining-affected communities.
Focus on Long-Term Asset Creation and Sustainable Development
The directive is part of a comprehensive action plan designed to streamline the utilization of DMF resources. The government has emphasized that the focus should shift towards long-term asset creation, moving away from piecemeal works that are often influenced by political factors and yield limited benefits. By prioritizing enduring projects, the state aims to ensure that mining-affected regions receive meaningful and lasting development support.
Priority Sectors for DMF Fund Allocation
District collectors have been instructed to concentrate on key sectors that directly improve the quality of life for communities near mining areas. These include:
- Drinking water: Implementation of safe water supply systems.
- Healthcare: Upgradation of primary health centers.
- Education: Strengthening school infrastructure.
- Sanitation: Enhancing waste management and hygiene facilities.
- Rural infrastructure: Developing roads and other essential amenities.
According to guidelines, approximately 70 percent of DMF funds should be allocated to these high-priority areas. The remaining funds can be used for other development activities, such as skill development and livelihood generation programs.
Addressing Historical Challenges in Fund Utilization
The state government recently identified that several districts have accumulated significant DMF funds over the years, but utilization has been uneven due to inadequate planning and execution delays. The new directive seeks to rectify this by mandating a clear, time-bound roadmap for fund deployment. Special attention is being given to habitations severely impacted by mining, particularly those facing issues like water scarcity, poor healthcare access, and inadequate infrastructure.
Enhanced Monitoring and Convergence with Existing Schemes
To maximize efficiency and avoid duplication, the government is promoting the convergence of DMF works with existing development schemes. Additionally, monitoring mechanisms will be strengthened to ensure transparency, accountability, and timely completion of projects. This approach is expected to foster better coordination and resource optimization across various initiatives.
Government's Vision for DMF Funds
MK Meena, principal secretary of mines and geology, stated, "The revised guidelines are intended to uphold the core objective of the DMF — to improve the socio-economic conditions of communities affected by mining operations. By discouraging wasteful expenditure on temporary works and insisting on long-term planning, the government aims to create durable assets and ensure that the benefits of the fund are felt over time."
With district collectors now tasked with preparing comprehensive five-year plans, the focus will be on translating policy intent into tangible outcomes on the ground, ultimately fostering sustainable development in mining-affected regions of Andhra Pradesh.



