Bhubaneswar: The Odisha government has introduced a proportionate sharing mechanism for District Mineral Foundation (DMF) funds among mining-affected districts, ensuring that funds generated from a mine are utilized only within areas impacted by mining activities.
According to a resolution issued by the Planning and Convergence Department on June 3, DMF funds collected from a mine will be spent exclusively in the directly and indirectly affected areas of that specific mine in a 70:30 ratio. Areas located within a 15-km radius of a mine boundary will be treated as directly affected, while areas situated between 15 km and 25 km from the mine boundary will be considered indirectly affected.
The government has clarified that DMF funds cannot be utilized beyond 25 km from the boundary of a mine under any circumstances.
The resolution also addresses situations where the mining-affected area of a mine extends across more than one district. In such cases, the DMF funds generated from that mine will be distributed among the affected districts in proportion to the extent of mining-affected area falling within each district.
To facilitate implementation, 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 in different districts. The identified details will be communicated to the concerned District Collectors.
The Deputy Director of Mines of the district where a mine is located will calculate the district-wise share of DMF funds related to that mine. After obtaining approval from the District Collector concerned, the allocation details will be shared with collectors of neighbouring affected districts, with copies marked to the Director of Mines and Geology and the DMF Support Cell of the Planning and Convergence Department.
Issued under the orders of the Governor, the new sharing mechanism will come into force with effect from June 1, 2026.
The move is expected to bring greater transparency and equity in the utilization of DMF resources, particularly in cases where mining operations affect communities across district boundaries.
