BHUBANESWAR: With the Ministry of Mines planning to set up a programme management unit (PMU) to monitor utilisation of the District Mineral Foundation (DMF) funds, the state will come under close scrutiny for lagging in utilisation, and diversion of money to other sectors than the mandated welfare of mining-affected areas.
With Odisha accounting for the highest share of DMF funds - over Rs 30,000 crore which is nearly 30 per cent of the total collection across the country, the total expenditure so far is Rs 1,867.80 crore. This is merely six per cent of the total collection.
Serious irregularities in fund utilisation and diversion of DMF funds have been reported from different districts. While Sundargarh district had collected Rs 6,405 crore from DMF, only Rs 860 crore has been utilised. Purchase of expensive vehicles for the district police and construction of boundary wall of Sundargarh circuit house from DMF funds were some of the irregularities detected earlier.
After a parliamentary committee expressed concerns over diversion of funds from DMF in several states, the Mines ministry initiated the process to establish a PMU to assist the Centre and the states for timely and proper fund utilisation in priority areas.
Apart from assisting the ministry in rolling out new rules, guidelines and standard operating procedures (SOPs) on various aspects of DMF, the proposed PMU will coordinate with various ministries of the central government, state governments, district administrations and work closely with the state teams to ensure smooth implementation of DMF projects.
“The PMU will review effective utilisation of DMF funds under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) by states, districts and point out shortcomings while suggesting interventions required by the ministry. It will prepare a list of non-performing and non-informing districts on a monthly basis and send alerts to the states concerned,” the ministry said.
The Centre issued revised PMKKKY guidelines last year for effective and timely utilisation of DMF funds to ensure sustainable development of the mining-affected areas. The PMU will have the mandate to monitor legacy audit pending from the inception of DMFs at the district-level so that these are completed in a time-bound manner.
After monitoring the audit and annual report status, it will be uploaded on the national DMF portal, officials said.