DMFs are non-profit trusts that were formed under the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015 with an objective to work in the interest and benefits of persons and areas affected by mining-related operations in a manner as may be prescribed by the State Government.

The operation of DMFs falls under the jurisdiction of the relevant State Government. The fund for DMF is collected at the district level. In all states' DMF rules, some high-priority areas are identified which are entitled to get at least 60 per cent of the DMF fund. The usage of the fund includes important and critical concerns such as healthcare. Thus, DMF funds can be utilised to increase and improve healthcare facilities, screening and testing facilities and other required resources.

The several state DMF rules and the Pradhan Mantri Khanij Khestra Kalyan Yojana (PMKKKY) guidelines specify some high priority issues for DMFs, including:

1. Drinking water
2. Health
3. Women and child welfare
4. Education
5. Livelihood and skill development
6. Welfare of aged and disabled
7. Sanitation

The objective of this programme is to work for the welfare of people and areas affected by mining related operations with the help of the funds generated by DMFs.

1. To execute different developmental and welfare projects/programs in areas affected by mining in a way that the projects/programs supplement the existing ongoing schemes/projects of State and Central Government.
2. To reduce and control the unfavourable effects and consequences (during and after mining) on the environment, health and socio-economics of people in mining areas.
3. To secure long-term continuous source of income for the population affected in mining areas.

Maharashtra District Mineral Foundation (Trust) Rules, 2016