BHUBANESWAR: The State Government is planning amendment in the District Mineral Foundations (DMF) Rules, 2015 regarding the allocation of 60 per cent funds for directly affected areas and the rest 40 per cent for indirectly affected areas in the mines bearing districts. Sources said the Steel and Mines Department has been asked to make proposals indicating required amendments in the rules so that there will be no confusion while finalising developmental projets in those districts.
“Since it has been decided that connecting unconnected villages in DMF districts would be given priority for funding out of DMF funds, the amendment is necessary. Under current set of rules, it will be difficult to sanction projects for indirectly affected districts,” said an official. Steps for immediate amendment of the rules are being taken after Chief Secretary at a recent review meeting expressed his displeasure over low level of expenditure out of DMF funds.
He had also asked to include DMF and Odisha Mineral Bearing Area Development Corporation (OMBADC) expenditure review as a part of expenditure review in the meetings of all Secretaries. While more than `4,000 crore under DMF Trusts constituted in mineral-bearing districts have been collected and projects worth `2,233 crore sanctioned so far, there is no clear information on the number of projects completed till date. Keonjhar and Sundargarh have been allotted maximum funds as several pockets in both the districts have suffered environmental degradation due to mining operations. While Keonjhar has been sanctioned about `983 crore, Sundargarh got `621 crore.
DMF mandated under the amended Mines and Minerals Development and Regulation (MMDR) Act, facilitates augmentation of funds to provide a permanent and sustainable solution to problems of tribals and poor people living in mining affected areas. Earlier, New Delhi-based Centre for Science and Environment (CSE) had exposed shortcomings in utilisation of DMF funds on various fronts, from institutional and administrative issues, to planning and budgetary allocations.