The Tamil Nadu government has updated the District Mineral Foundation (DMF) Rules to better use funds for communities affected by mining. The new Tamil Nadu District Mineral Foundation Rules, 2025, replace the 2017 rules. Under the revised rules, if mining lease holders fail to pay their contribution to the DMF, they face a penalty equal to one-time payment of the contribution plus 12% interest on the delayed amount. This is in addition to the amount they owe. Earlier, such offenses could lead to up to two years imprisonment or a fine up to ₹5 lakh, or both. Continuing violations attracted an extra ₹50,000 fine per day after conviction. The District Collector chairs the DMF Trust, Managing Committee, and Governing Council. All royalty or seigniorage fees collected must include the Trust Fund contribution. No payment is accepted without this mandatory part. The rules ensure that at least 70% of the Trust Fund is spent on the directly affected districts. Key priority areas include drinking water supply, environment care, health, education, and women’s welfare. Districts collecting ₹10 crore or more yearly must keep an endowment fund — up to 10% of receipts — to help create jobs and sustain livelihoods where mining stops. This fund aims to support local communities after mining ends.