A decade after the district mineral foundation (DMF) initiative came into being, Odisha has reworked its norms. At a cabinet meeting last week, the Mohan Charan Majhi government expanded the scope of DMF rules. Inclusion of new projects, stressing proper use of funds and a bigger area of coverage augur well for mining-affected communities. The DMF trust board has been given the authority to select the permitted development activities. The directly-affected area stands redefined as that within a 15-km radius from a mine or a cluster of mines, as against the earlier 10 km. The indirectly-affected area, not clearly marked earlier, has been stipulated as within 25 km. Development activities within 5 km from a mine would be taken up in ‘saturation mode’. Much of this means that more people from a larger geographical area will come under the ambit of DMF.
Constituted by an amendment to the Mines & Minerals (Development & Regulation) Act, the DMF scheme has immensely benefited Odisha—and rightfully so. Its wealth in mineral resources has entitled the state to a large fund from the lessees so that the adverse impact of mining on local communities can be mitigated. Such foundations have been established across 645 districts in 23 Indian states. At over `30,000 crore, the eastern state accounts for a third of the total DMF collections across the country over the past decade. Records show that over half the funds at Odisha’s disposal are at various stages of expenditure, with the lion’s share going to drinking water, education and health.
However, very little transparency was maintained by the previous BJD regime about the manner in which DMF resources were put to use, some of which seemed extravagant in nature. The BJP, then in the opposition, had constantly flagged issues of corruption, opacity in management and the carte blanche seemingly given to collectors in districts such as Keonjhar and Sundargarh, two of the most mineral-rich regions. The DMF was designed to improve the lives of a large section of the population, often from tribal communities, who not only live at the bottom of the pyramid but also bear the degrading effects of mining. The least the Majhi government could do is present a white paper on DMF to show it really means business.