With only about 6 per cent of the collected District Mineral Foundation (DMF) funds having been used up till now, the Odisha government has decided to speed up the disbursal of funds on other welfare and development activities in saturation mode within a 5-kilometre radius of mining areas. The Odisha cabinet recently approved this move, which aims to offer comprehensive support to communities that have been directly impacted by mining actions, as many of those communities, as a result of environmental degradation, have lost land, livelihoods and ID.
During the financial years 2019-2020 and till the end of 2024-2025, Odisha’s DMF has collected a substantial amount of ₹23,624 crore. But an official at the state mining department said that the ₹1,419.66 crore spent till now is just 6 per cent of the total. The State’s new strategy is to accelerate the use of funds and, as a result, improve the quality of life in mining located areas.
The DMF aims to improve people and regions related to mining by treating the local communities as the key stakeholders of resource-led development and environmental protection. It is a non-lapsable fund not linked to any scheme and, hence, flexible to meet local needs. The latest decision extends the definition of directly affected areas from a 10 km to a 15 km radius, while the indirectly affected areas come under the ambit of a 25 km radius.
According to the mandate, the government will direct that at least 60% of DMF funds be spent on high-priority areas. Among the items included are the provision of drinking water supply, environmental protection and pollution control, health care, education, welfare of women, children, elderly, disabled persons, skill development and sanitation. Physical infrastructure, irrigation, energy, watershed development and any other environment with relief projects in mining zones will be done with the remaining funds.
Important is the fact that, going forward, the DMF Trust will alone determine what activities which should take place in affected areas, without any interference from outside.
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