BHUBANESWAR: The state government has introduced a new mechanism for sharing and utilisation of District Mineral Foundation (DMF) funds among mining- affected districts to ensure that the money is spent only in the areas impacted by mining activities. The new system has come into force from June 1.
As per a resolution notified by the Planning and Convergence department, DMF funds collected from a mine will be utilised only in the areas directly and indirectly affected by that particular mine in the ratio of 70:30. Areas within a radius of 15 km from the boundary of a mine will be treated as directly affected areas, while those located between 15 km and 25 km from the mine boundary will be considered indirectly affected. The government has made it clear that DMF funds shall not, under any circumstances, be utilised beyond 25 km from the boundary of a mine.
The resolution also lays down a proportionate sharing mechanism for mines whose impact extends across districts. In such cases, DMF funds will be distributed among the affected districts based on the extent of miningaffected area falling within each district. To facilitate the process, the director of Mines and Geology will coordinate with the Odisha Space Applications Centre (ORSAC) to obtain geographical data and identify the mining-affected areas. The details will then be communicated to the district collectors. The deputy director of Mines in the district where the mine is located will calculate the districtwise share of DMF funds after approval from the collector.
The information will subsequently be shared with neighbouring districts, along with the director of Mines and Geology and the DMF support cell of the Planning and Convergence department. The move follows the reforms introduced by the state government last year to strengthen transparency and accountability in the management of DMF funds. Through amendments to the DMF Rules, 2015 in May last year, the state government had prohibited transfer of DMF money to the state exchequer, state-level funds, the Chief Minister’s Relief Fund or other schemes.