(1) The Managing committee shall maintain and/or cause to be maintained proper books of accounts, documents and records with respect to the Trust Fund to give a true and fair picture of the affairs of the Trust;
(2) The accounts of the Trust shall be audited every year by Chartered Accountant appointed by the DMF and the report thereof shall be placed on the website of the foundation along with the annual report;
(3) The Chartered Accountant of the trust shall be appointed by the Trustees in the meeting of the Governing Council, on such terms and conditions as may be decided by the Trustees;
(4) The Chartered Accountant may be replaced by the Trustees;
(5) The Trust shall submit an annual report and compliance of the audit report to the Director, Directorate of Geology and Mining, Uttar Pradesh;
(6) The Trust shall submit an annual report and compliance of the audit report to the Government, within one month from date of its approval as per Rule 9(ix) of these Rules and the same shall be placed on website of the foundation;
(7) The accounts of the Trust, may be audited by the Comptroller and Auditor General (CAG) as per schedule decided by (CAG) in consultation with State Government;
(8) Notwithstanding anything to the contrary in sub rule (1) the State Government may appoint a Chartered Accountant or may request the Auditor General (A.G.) for audit of a particular year or period on such terms as may be decided by the State Government;
(9) The Trust shall forward the approved Budget and Annual Plan along with Schemes and Projects for the next financial year, to the District Panchayat, District Administration for publication on their respective website.
(10) The Trust shall prepare a quarterly progress report in physical and financial terms in respect of the approved Schemes and Projects within 45 days of the close of the quarter and forward it to the District Panchayat and District Administration for publication on their respective website.
Management of the trust
13. The management of the trust shall vest in a Governing Council, which shall consist of all the members of the Trust. However, the day to day management of the Trust shall be managed by a Managing Committee, as defined in Sub - Rule (7) of rule 4 above.
The State Government may however decide to alter the 8 1First Amendment Dated 18.03.2020, 2Second Amendment Dated 17.08.2021 and 3Third Amendment Dated 29.09.2025 composition of the Managing Committee at any time Decisions of The trustees
14. (1) All decisions shall be taken by the Trustees in the meeting of the Governing Council and every meeting of the Governing Council shall be deemed to be a meeting of the Trust.
(2) All decisions of the Governing Council shall be taken by the majority of the members present and voting. In case of tie the Chairman of the meeting shall have a casting vote.
(3) Unless agreed by the State Government the Trustees shall not amend any part of the Trust Deed.
(4) Trustees, Governing Council and the Managing Committee shall act in accordance with the directions, guidelines etc. issued by the State Government from time to time.
Operation of The Trust fund
15. The Trust fund shall be kept in any scheduled Commercial Nationalized Bank only in the name of the Trust. The bank account shall be opened with the prior approval of State Government and the account thereof shall be operated under the joint signatures of the Member - Secretary and a member of the Managing Committee authorized by the Managing Committee.
The Trust shall maintain the books of account of this Fund.
Scope of the Trust 316. (1) The Pradhan Mantri Khanij Kshetra Yojana (PMKKY) and other welfare schemes of the State and Central Government shall be implemented by the Trust of the respective districts using the funds accruing to the Trust.
(2) The overall objective of the said yojana and other welfare schemes of the State and Central Government shall be, -
(a) to implement various developmental and welfare projects/programs in mining affected areas, and such projects/ programs will be complement to the existing ongoing schemes/projects of the State and the Central Government;
(b) to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts; and
(c) to ensure long-term sustainable livelihoods for the affected people in mining areas.
(3) Activities meant to be taken up under the "Polluter Pays Principle" shall not be taken up under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).
(4) The DMFs shall focus on achieving the Sustainable Development Goals (SDGs) in mining affected areas. While formulating schemes, DMFs will give priority to achieving targets under Aspirational Districts Programme and Aspirational Block Programme.
(5) The DMF shall ensure there is no duplicacy in usage of funds.
Utilization of Trust Funds 1,2&317. The funds available with the Trust shall be utilized for, - (A) High priority areas-at least 70% fund shall be utilized under following heads: -
(a) Drinking water supply-Centralized purification systems, water treatment plants, permanent temporary water distribution network including stand alone facilities for drinking water, laying of piped water supply system;
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(b) Environment preservation and pollution control measures- Effluent treatment plants, prevention of pollution of streams, lakes, ponds, ground water, other water sources in the region, measures for controlling air and dust pollution caused by mining operations and dumps, mine drainage system, mine pollution prevention technologies, measures for working or abandoned mines, other air, water and surface pollution control mechanisms, preparation of scientific district survey report for environment friendly and sustainable mine development and providing necessary equipment and personnel for the creation of technical infrastructure to control illegal mining transportation with the purpose of environmental protection and pollution control. Identification of mineral-specific pollutants and their hazard potential may be done by involving reputed educational institutes/research institutions. The fund may be allocated for the identification of the hazards, setting up air quality monitors and displays, and undertaking measures for the implementation of the recommendations of the research;
(c) Health care-The focus must be on people whose health is affected due to mining creation of primary/secondary/tertiary health care facilities in the affected areas. The emphasis should not be only on the creation & the health care infrastructure, but also provision of providing necessary staff (Doctors/paramedical/equipment and supplies required for making such facilities effective. To that extent, the effort should be to supplement and working convergence with the existing health car infrastructure of the local bodies, State and Central Government. The expertise availability with the National Institute of Mines Heal may also be drawn upon to design special infrastructure needed to take care of mining related illness and diseases, mobile health ca units in the mining affected areas. Group insurance Scheme for health care may be implemented for mining affected persons;
(d) Education-Construction of school/college/vocational/ training institute buildings, additional class room Laboratories, Libraries, arts and craft room toilet blocks, drinking water provision residential hostels for students/teachers’ remote areas, sports infrastructure, vocation training facility, engagement teachers/other supporting staff, e-learning setup, other arrangement of transport facilities (bus/van/cycles/ rickshaws/etc.) and nutrition related programs. Financial support to students of affected areas for pursuing education in Government/Government aid institutions of higher education;
(e) Welfare of women and children Special programs for addressing problems maternal and child health, malnutrition adolescence, infectious disease etc. can taken up under the Trust;
(f) Welfare of aged and disabled people Special programme for welfare of aged disabled people and financial assistance District Disability Rehabilitation Cent (DDRCs);
(g) Skill development and Livelihood generation-Skill development for livelihood support, income generation and economic activities for local eligible persons. The project/ schemes may include training. development of vocational/skill development center, selfemployment schemes, support to Self-help groups and provision of 10 forward and backward linkages for such self-employment economic activities, works to improve and showcase the arts and crafts of the affected people and areas, collection and processing of minor forest produce;
(h) Sanitation-Collection, transportation and disposal of waste, cleaning of public places, provision of proper drainage and sewage treatment plant, provision for disposal of fecal sludge, provision of toilets and other related activities;
(i) Housing-Provision of Pucca housing for mining affected people not covered under central or state schemes;
(j) Agriculture-Activities related to Agriculture, Horticulture and Agroforestry. Assistance to farmers through trainings, support to Farmer Producer Organization (FPOs)/collective’s/ cooperatives, support for setting up of food processing units, storage including cold storage, marketing facilities like market yards etc., plantation, processing of medicinal herbs;
(k) Animal Husbandry: Promotion of livestock, poultry, piggery, fishery, feed and fodder development and supporting innovation in animal husbandry, Farmers Producer Organizations (FPOs), Self Help Groups (SHGs), Farmer Cooperative Organizations (FCOS).
(B) Other priority areas-Up to 30% Fund shall be utilized under the following heads-
(a) Physical infrastructure-Providing required physical infrastructure and its maintenance-roads, bridges, railway and waterways projects.
(b) Irrigation Developing alternate source of irrigation, adoption of suitable and advanced irrigation techniques, assistance for micro irrigation facilities including drip irrigation, assistance for bore wells and pump energization.
(c) Energy and Watershed Development-Development of alternate source of energy rainwater harvesting system. Development of orchards, integrated farming and economic and restoration of catchments. and
(d) Any other measures for enhancing environmental quality in mines bearing district
(i) The overall development of the area affected by mining related operation in the district in accordance with the Annual Action Plan prepared by the trustees of the Foundation for the purpose;
(ii) Creation of the local infrastructure for socioeconomic purposes;
(iii) Providing, maintaining or upgrading of community assets and service for local population in the area affected by mining related operations;
(iv) Organizing or conducted training programs for skill development and capacity building for creating employment and self-employment capabilities:
Provided that a sum not exceeding 5% of the total funds received by the Trust in the year may be spent by the Trust for meeting its administrative or establishment expenses:
Provided further that the trust fund or any part thereof shall not be used for advancement of any loan or grants in cash to any of the beneficiaries:
11 3Third Amendment Dated 29.09.2025
Provided also that the trust fund or any part thereof shall be used for such purposes as directed by the Central Government/ State Government from time to time.
(C) A minimum of 70% of the DMF funds shall be spent only in the directly affected area as specified in rule 2A.
318. Omitted Monitoring of the amount payable to the Trust
19. (1) Every lessee shall remit the amount payable to the District Mineral Foundation Trust into the credit of such Bank account as the Foundation may specify, under intimation to the officer to whom the royalty is payable.
(2) Every officer who is authorized to collect royalty shall maintain a register of the amount payable and paid by each lessee and furnish the monthly consolidated statement thereof to the Member Secretary of the Committee at the end of every month.
(3) To ensure a better coordination synergy among the schemes, the platform constituted under District Development Coordination and Monitoring Committee initiative of Ministry of Rural Development Government of India will monitor the schemes under PMKKKY at the district level in accordance with guidelines of the said committee.
Administrative arrangements
20. (1) The State Governments shall provide services of the personnel under their control including employees working in the District Panchayat for management of the Trust and for execution of the Annual Plan as may be required for the purpose.
(2) The Trust may request the State Government to provide required number of core personnel from its departments or from regular employees of the Zila Parishad or such other cadre, for providing administrative and technical assistance to the Trust. Services of such personnel shall continue to remain in their own respective cadres. The Trust may bear expenditure up to 3% of its accrued funds for this purpose.
(3) The Trust may also ask service providers to provide such services as may be needed for smooth functioning of the Trust and may provide for incurring contingent expenditure for its functioning.
Liability of Trustees 21. (1) The Trustees shall not be liable on account of anything done in good faith, bonafide with due diligence. The Trustees shall also not be liable or responsible for any banker, broker, custodian or other person in whole hands the same may, in good faith, be deposited or placed nor for the deficiency or insufficiency in the value of any investments of the Trust Fund nor otherwise for any involuntary loss.
(2) The Trustees and every attorney or, agent appointed by the Trustees shall be entitled to be indemnified out of the Trust Fund in respect of all liabilities, losses and expenses incurred in execution of the Trust or any of the powers, authorities, and discretions vested in or delegated to them other than those arising out of gross negligence and/or willful misconduct, provided however that, such indemnity shall not in any event exceed the total of the Contributions.
Remuneration 22. The Trustees shall not be entitled to any remuneration for their services.
The seal of the Trust 23. The Trustees, in a meeting of the Governing Council may decide 12 3Third Amendment Dated 29.09.2025 to provide a Seal for the purpose of the Trust and shall have power from time to time to destroy the same and substitute a new seal in lieu thereof. The Seal of the Trust shall remain in the custody of the Chairman of the Executive Committee and the Chairman shall have the authority to use the same for and on behalf of the Trust.
Revocability 24. This Trust is revocable at the discretion of the State Government.
The Trust shall continue to exist till such time as may be decided by the State Government. At the time of extinguishment of the Trust, all the assets and the liabilities of the Trust shall be transferred to the State Government.
Five years perspective planning and yearly plan