Mining Fund Must Aid Affected Villages, Not Politics: G Kishan Reddy

Union Minister G Kishan Reddy emphasized that the District Mineral Fund must prioritize the welfare of people in mining-affected areas over political promises. He highlighted critical drinking water shortages in approximately 300 coal villages and instructed officials to resolve these issues using DMF, CSR, or coal company funds. Reddy called for rigorous assessment and documentation of DMF project impacts on local schools, hospitals, and families. He also outlined plans for the sustainable closure and repurposing of 143 de-mined coal sites for community benefits like tourism and water bodies.

Key Points: DMF Must Prioritize Mining-Affected Areas, Says Minister Reddy

  • DMF focus on welfare, not politics
  • Address drinking water shortages in 300 coal villages
  • Assess and document project impacts
  • Repurpose 143 closed mines sustainably
3 min read

Priority for mining-affected areas must guide District Mineral Fund usage, not political gap: G Kishan Reddy

Union Minister G Kishan Reddy directs DMF funds to welfare of mining-affected communities, addressing water shortages and project impact.

"This is not DMF to fill up the political gap. DMF is to solve the problem of the poor and the affected people. - G Kishan Reddy"

New Delhi, March 23

Union Minister for Coal and Mines, G Kishan Reddy, stated on Monday that the primary objective of the District Mineral Fund remains the welfare of people in mining-affected regions and the development of essential infrastructure.

Addressing the National District Mineral Foundation Summit 2026 in Delhi, the minister emphasised that the fund must not be utilised to bridge political gaps but should focus on addressing the immediate needs of the poor and local communities.

Reddy underscored the necessity of prioritising the most vulnerable populations over secondary infrastructure goals.

"This is not DMF to fill up the political gap. DMF is to solve the problem of the poor and the affected people. To solve that problem, DMF is there. But I have given assurances in this village before the election, put a road in is not the priority. The first priority is the welfare of the affected people, the development of the affected area, and minimum amenities; this should be given attention," he said.

Addressing critical infrastructure gaps, the minister pointed out that while the mining sector impacts over 3,000 villages, approximately 300 villages within the coal sector still face significant drinking water shortages.

He asserted that "there should not be any such village, in the mining affected areas, that village has not got clean drinking water." Reddy instructed officials to resolve these issues by giving high priority to arrangements through the DMF, Corporate Social Responsibility (CSR) funds, or coal companies.

He linked these efforts to the cabinet-approved second phase of the Jal Jeevan Mission, stating, "In this, everyone should be given drinking water."

The minister also called for a rigorous assessment of how DMF-sanctioned projects transform local lives. He urged district collectors to document the tangible changes in schools, hospitals, and families.

"The DMF scheme, which you sanction and implement, what impact does it have on that area, on that road, on that school, on that hospital, on that poor family, what impact does it have, that also needs to be recorded," Reddy told the summit.

He suggested that officials use social media to showcase "before and after" scenarios, noting that "every DMF scheme has had an impact on social media, in our district, in this mandal, in this village."

Reddy also highlighted that 143 coal mines de-mined since independence have not yet undergone scientific closure. He stated that the Prime Minister has ordered the closure of these sites using sustainable methods, involving nodal officers and 143 specialised committees.

Reddy described a vision for repurposing this land for community benefit. "You have to level it, do some greenery development, do some water bodies development, do some fish pond development, do some tourism development," he said.

He also requested that these plans include self-help groups to ensure the land remains productive and sustainable for the local population.

- ANI

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Reader Comments

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Sarah B
As someone who has worked with NGOs in Jharkhand, I've seen the gap firsthand. The idea of documenting impact and showing 'before and after' is excellent. Accountability is key. But the real challenge is ensuring this directive percolates down to the district level where political pressures are intense.
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Rohit P
Good words, but we've heard similar promises before. In Odisha, many villages near mines are like ghost towns - polluted air, cracked houses, and no water. The plan for scientific closure and turning old mines into fish ponds or green zones sounds great on paper. Let's see the execution. Action speaks louder than speeches.
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Priya S
Including self-help groups in the land repurposing plan is a brilliant and practical idea. It ensures sustainability and gives local women a source of livelihood. This is the kind of inclusive development we need. Hope the 143 committees work fast!
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Vikram M
Linking DMF with Jal Jeevan Mission is a smart move. Water is a fundamental right. If even one village in mining areas lacks clean drinking water in 2026, it's a massive failure of the system. The minister is right to make this the top priority. No more excuses.
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Michael C
The emphasis on not using funds to "bridge political gaps" is a very direct and necessary critique of how development funds often get misallocated for visibility rather than impact. This is a universal governance issue. Focusing on the most vulnerable should be the non-negotiable core of any such fund.

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