Bhubaneswar: In an attempt to ensure fair distribution of resources among mining-affected areas, the Odisha government has unveiled a new mechanism for the proportionate sharing of funds under the District Mineral Foundation (DMF) based on the extent of impact.
According to an official notification, DMF funds collected from a mine will be utilised only in areas directly and indirectly affected by that particular mining operation. Under the new system, fund utilisation between directly affected and indirectly affected areas will be done in a 70:30 ratio.
With the government issuing the official notification, the new fund sharing mechanism came into force on June 1, official sources said on Thursday.
Areas located within a 15-kilometre radius of a mine boundary will be considered directly affected, while those situated between 15 km and 25 km from the mine boundary will be designated as indirectly affected. The government has also made it clear that DMF funds cannot be utilised beyond a 25-km radius from the mine.
Officials said the new mechanism addresses situations where the impact zone of a mine extends across more than one district. In such cases, DMF funds generated from the mine will be shared among the affected districts in proportion to the mining-affected area falling within each district.
To implement the new framework, the Director of Mines and Geology has been tasked with coordinating with the Odisha Space Applications Centre (ORSAC) to obtain geographical data and identify mining-affected areas across districts. The identified details will then be communicated to the respective district collectors to ensure proper implementation of the new system.
The Deputy Director of Mines in the district where a mine is located will calculate the district-wise share of DMF funds. After obtaining approval from the district collector concerned, the allocation details will be shared with neighbouring district collectors, along with the Director of Mines and Geology and the DMF Support Cell of the Planning and Convergence Department, sources said.
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