The Tamil Nadu District Mineral Foundation Rules 2025 announced a few days ago will replace the Tamil Nadu District Mineral Foundation Rules 2017. File | Photo credit: B. Jothi Ramalingam
The Government of Tamil Nadu has revised the rules of the District Mineral Foundation (DMF) regarding the utilization of funds from the District Mineral Trust for the benefit of people and areas affected by mining related operations.
The Tamil Nadu Local Mineral Foundation Rules 2025 announced a few days back will replace the Tamil Nadu Local Mineral Foundation Rules 2017.
Under the revised rules, if the holder of a mining lease, combined licence, quarry lease or permit violates the norms relating to contributions to the fund, he will be penalized with an amount equivalent to a one-time payment of the contribution, in addition to the contribution, which must be paid along with 12% interest for the duration of the violation.
Earlier, under the Tamil Nadu District Mineral Foundation Rules, 2017, such violation was punishable with imprisonment of up to two years or a fine of up to ₹ 5 lakh or both. In the case of a continuing violation, the penalty included an additional fine that could go up to ₹50,000 for each day during which the violation continued after the first conviction.
The District Collector concerned would be the Chairman of the Management Committee of the District Mineral Foundation Trust and also the Board of Trustees of the DMF.
All payments of royalties or royalties must be collected with a trust fund component and no royalties or royalties will be accepted without a mandatory contribution to the trust fund.
The rules stipulate that at least 70% of the trust fund must be spent only on the directly affected area and also on high priority sectors such as drinking water supply, environmental protection, healthcare, education and women’s welfare.
Districts with an annual collection of ₹10 crore or more will maintain an endowment fund of a reasonable amount not exceeding 10% of the annual income for sustainable livelihood. This fund will be used to create and sustain livelihoods in areas where mining activity has stopped.
Published – 02 Jan 2026 0:23 IST
