Full formGovernment & Exams
NMFstands forNational Mineral Fund
Full Form of NMF
What is NMF?
The National Mineral Fund (NMF) is a dedicated financial mechanism established by the Government of India under the Mines and Minerals (Development and Regulation) Act, 2015. It is designed to support the sustainable development of mining-affected areas, including rehabilitation of displaced communities, environmental restoration, and infrastructure improvement in mineral-rich regions. The fund collects a percentage of the royalty paid by mining leaseholders and is managed by the state governments where mining operations occur. NMF is primarily used in states like Odisha, Jharkhand, and Rajasthan, where large-scale mining takes place. It ensures that a portion of mineral wealth is reinvested locally, addressing social and ecological impacts. In competitive exams such as UPSC and state civil services, NMF is often cited as an example of a compensatory mechanism for resource extraction. The fund operates alongside similar instruments like the District Mineral Foundation (DMF) and is periodically audited by the Comptroller and Auditor General of India to ensure transparency and effective utilisation.
NMF का फुल फॉर्म
राष्ट्रीय खनिज कोष
Example
The state government allocated ₹50 crore from the NMF to build schools and hospitals in the tribal belt affected by iron ore mining.
NMF — frequently asked questions
What is the full form of NMF?
The full form of NMF is National Mineral Fund.
What is the purpose of the National Mineral Fund?
The purpose of NMF is to provide financial resources for the development and rehabilitation of areas affected by mining, including environmental restoration and community welfare.
How is the National Mineral Fund financed?
NMF is financed through a percentage of the royalty paid by mining leaseholders, as mandated under the Mines and Minerals (Development and Regulation) Act, 2015.