Odisha introduces new policy for equitable distribution of DMF funds

The Odisha Government on Thursday announced to introduce a new policy for the equitable distribution of District Mineral Foundation (DMF) funds among mining-affected districts, aiming to ensure a more impact-based allocation of resources. 

The Planning and Convergence Department has issued an official notification outlining the revised guidelines. Under the new framework, DMF funds will be allocated based on the extent of impact caused by mining activities rather than the geographical location of the mine alone. 

The move is intended to ensure that all areas affected by mining receive their fair share of developmental assistance.

As per the policy, areas located within a 15-kilometre radius of a mine will be classified as 'directly affected areas', while regions situated between 15 km and 25 km from the mining site will be considered 'indirectly affected areas'. 

The government has stipulated that 70% of DMF funds will be spent on the development of directly affected areas, while the remaining 30% will be utilised for the welfare and development of indirectly affected regions.

The notification further clarifies that DMF funds cannot be used in areas located beyond 25 kilometres from a mining site, ensuring that the benefits remain focused on communities impacted by mining operations.

According to the revised policy, the district where a mine is located will continue to collect the entire DMF contribution. However, the funds will subsequently be shared with other affected districts based on the geographical spread of the mining impact zone. This mechanism is expected to address long-standing concerns regarding the unequal distribution of mining-related development funds.

To facilitate the process, the Odisha Space Applications Centre (ORSAC) will be responsible for identifying and mapping mining-affected areas, while the Director of Mines and Geology will coordinate the implementation of the new system.