Responsible Resource Sharing

The availability and diversity of mineral resources, besides the extent of their utilization constitute essential determinants of industrial growth and infrastructure development. Though the mining sector contributes modestly to India’s GDP, it plays a crucial role in sustaining economic progress and scientific advancements. In recent years, a growing focus has been placed on ensuring that mining benefits are shared more equitably with local communities especially those living in proximity to the mining sites.

Jammu and Kashmir, celebrated globally for its enchanting beauty, also possesses a modest yet significant range of mineral resources. The systematic study of these resources dates back to 1917, when British Geologist C.S. Middlemiss conducted the first benchmark survey for the then princely state.

The Geology and Mining Department, established in 1960 and made permanent in 1978, has since identified nearly 8,500 million tonnes of mineral resources/reserves, of limestone, gypsum, granite, marble, lignite, bauxite, coal, magnesite, slate, sapphire, and dolomite. The discovery and systematic mapping of these resources enabled the government to grant over 280 mineral concessions to public and private enterprises, spurring the growth of mineral-based industries, supporting infrastructure development, generating substantial employment and revenue for the Government exchequer.

All mining operations in J&K are governed by the Mines and Minerals (Development and Regulation) Act, 1957, and the rules made thereunder including J&K Minor Mineral Concession, Storage, Transportation of Minerals and Prevention of Illegal Mining Rules, 2016. These legal frameworks aim to balance mineral extraction with environmental sustainability and local welfare.

Mining activities are mostly located in remote areas where local communities face economic and social challenges. Recognizing the need to share mining benefits with these populations, the Government of India in 2015 amended the MMDR Act in 2015, mandating the establishment of District Mineral Foundations (DMFs) in all districts of the country for the welfare of mining-affected people and areas for their inclusive development.

Following the amendment in the MMDR Act 1957, the Government of Jammu and Kashmir notified the District Mineral Foundation Trust Rules in January 2017, defining the composition, governance, contribution and functioning of these trusts. Each district’s DMF is chaired by the Deputy Commissioner, while the District Mineral Officer serves as Member Secretary. Funds for the DMF come from the contributions made by mining leaseholders which are used to implement development and welfare programmes in mining-affected areas.

To streamline and standardise welfare efforts, the Government of India launched the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in the year 2015. Under PMKKKY guidelines, 70% of DMF funds are dedicated to high-priority areas such as drinking water, healthcare, sanitation, education, skill development, women and child welfare, environmental conservation, agriculture and animal husbandry. The remaining 40% supports infrastructure projects (roads, bridges, railways etc), irrigation, energy and watershed development. Unlike most public funds, DMF funds are treated as extra-budgetary resources for the State Plan and are non-lapsable, giving flexibility for more consistent and long-term planning.

PMKKKY has been appended to the list of 41 non-statutory schemes of Government of India to be monitored by District Development Coordination and Monitoring Committee (DISHA), and by the office of the Hon’ble Prime Minister of the country.

Since its inception in 2017, the Jammu and Kashmir DMF Trust has collected around ₹101.61 crore, of which ₹ 40.38 crore has already been utilized to implement 692 welfare schemes across mining-affected districts through regularly well-structured Annual Plans.

As Jammu and Kashmir continues to strengthen its mineral development and linked industries, the successful and transformative implementation of DMF and PMKKKY stands as a model for responsible mining that balances economic prosperity with equity, sustainability, and social justice.

(The writer is a Senior Geologist in the Directorate of Geology and Mining, J&K)