Odisha to spend DMF funds in saturation mode within 5 km of mining areas

This aims to provide comprehensive relief to families impacted by mining, who have lost land, livelihoods, and identity due to environmental degradation

Published on: Mar 22, 2025, 12:28:53 IST

By Debabrata Mohanty

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Bhubaneswar: With only around 6% of the fund from Odisha’s district mineral foundation utilised so far, the Odisha cabinet has approved a proposal to implement all developmental and welfare activities under the district mineral foundation in saturation mode within a 5 km radius of mining areas.

Between 2019-20 and 2024-25(January-end), an amount of ₹23624 crore was collected in district mineral foundation of Odisha of which only ₹1419.66(6%) crore have been spent so far. (HT photo/ Representative photo)

This aims to provide comprehensive relief to families impacted by mining operations, who have not only lost their land but also their livelihoods and identity due to environmental degradation.

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Between 2019-20 and 2024-25(January-end), an amount of ₹23624 crore was collected in DMF of Odisha of which only ₹1419.66(6%) crore have been spent so far, an official from the state mining department said.

The DMF aims to serve the interests and benefit of people and areas affected by mining operations. The fund recognises local communities as equal partners in natural resource-led development and environmental protection. It provides a mechanism for benefit-sharing with mining-affected communities.

The DMF is a special fund, not tied to any specific scheme or area of work, and it does not lapse at the end of each financial year.

Also Read: For tax purposes, mining without environmental clearance not illegal: Orissa HC

According to the new decision, the directly affected area has been expanded from 10 km to 15 km, while the indirectly affected area is capped at 25 km. Improved provisions include livelihood support, skill development, and agricultural assistance for mining-affected families. Additionally, the list of activities in affected areas will be determined solely by the DMF Trust, ensuring no external interference.

At least 60 percent of the DMF funds must be utilized for high-priority areas, including: (a) drinking water supply, (b) environmental preservation and pollution control measures, (c) healthcare, (d) education, (e) welfare of women and children, (f) welfare of the elderly and disabled, (g) skill development, and (h) sanitation. The remaining funds will be used for other purposes, including: (a) physical infrastructure, (b) irrigation, (c) energy and watershed development, and (d) any other measures to enhance environmental quality in mining districts.

ABOUT THE AUTHOR
Debabrata Mohanty
Debabrata Mohanty is a senior assistant editor of Hindustan Times who works as state correspondent from Odisha covering the state's politics, governance, public policy, natural disasters, environment and its society for close to three decades. With his long years of reporting from the state capital of Bhubaneswar, Mohanty has been known as one of the most experienced and credible journalists covering Odisha for the national English dailies. His reporting combines on-ground detail with deep institutional knowledge detailing the state's changing politics, governance issues, administrative reforms and the functioning of its public institutions. He has regularly reported on issues ranging from legislative developments and public policy implementation. Politics is his core areas of expertise as he closely tracks Odisha's political landscape, including the rise and transformation of the Bharatiya Janata Party (BJP), the Biju Janata Dal (BJD), the two principal political parties in Odisha. His long association with the state's political establishment enables him to write on contemporary developments in a larger political context. Mohanty takes a deep interest in writing human interest stories, environmental issues and documenting the impact of cyclones, floods, heatwaves, and other climate-related events in one of the most disaster-prone states. His coverage extends to public health, governance reforms and stories on accountability of government institutions. Before joining Hindustan Times, Mohanty worked with The Indian Express, Mail Today, and The Telegraph, where he covered at least six general elections and as many assembly elections. In 2007, he was selected for the prestigious Chevening Young Indian Print Journalist Programme at the University of Lincoln, United Kingdom, where he received advanced training in print journalism. In 2009 he won the Press Institute of India-International Committee of Red Cross award on conflict reporting for his on-ground reportage of 2008 Kandhamal riots.Read More

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