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
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.
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.
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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.