Adding another point to its lengthening list of achievements, Odisha has emerged as the highest contributor among states to the District Mineral Foundation (DMF) Fund, followed by neighbouring Chhattisgarh. Odisha contributed Rs. 16466.03 crore against Chhattisgarh’s share of Rs 8219.93 crore.
Back in 2015, the Centre under Section 20A of the MMDR Act had issued directions and guidelines for Pradhan Mantri Khanij Kshetra KalyanYojna (PMKKKY) to be implemented by the District Mineral Foundations (DMF) for taking up development and welfare projects in mining-affected areas. That makes DMF extremely important from the point of view of the development of areas where mining is done. Most of these are tribal-dominated areas. Complaints with regard to the utilization of DMF funds are addressed by respective state governments.
In keeping with the guidelines, instructions have been issued to the DMFs for identification of mining-affected areas and people to be covered under the PMKKKY scheme and spending at least 60% of the funds on high priority areas such as drinking water supply, environment preservation, pollution control, health care, education, welfare of women and children, the welfare of aged and disabled, skill development, sanitation and housing.
The guidelines also envisage an annual audit of the DMF funds to ensure that these funds are being utilized as per DMF rules framed by the respective state governments. Additionally, as per PMKKKY guidelines, the DMF has to prepare an annual report every year, within three months from the date of closure of the financial year, on its activities for the respective financial year.
That underscores the importance of DMF as far as developmental activities in areas affected by mining is concerned. The Mines and Minerals (Development and Regulation) Amendment Act, 2021 also empowers the central government to issue directions to the state governments with respect to the composition and functions of DMF. The Centre in an order last year had asked states to include MPs, MLAs and MLCs in the governing councils of the DMFs to make them more representative and to ensure greater accountability.
Odisha’s significant role in making DMF more effective can be gauged from the fact that it had contributed Rs. 16466.03 to it whereas overall collection in the country under the fund till December 2021 was Rs. 57,411.
The DMF is not the only area where Odisha has performed well and won the appreciation of the Centre. It has also done extremely well in the utilization of CAMPA (Compensatory Afforestation Fund Management and Planning Authority) fund which should be used for plantation drives and afforestation activities. Unlike some other states, which in the past have been found to be diverting CAMPA funds for payment of the salaries of their employees, Odisha has almost invariably stuck to the guidelines and put the money to good use.
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