Odisha Chief Minister Mohan Charan Majhi has directed officials to accelerate the expenditure of funds collected by the District Minerals Foundations (DMFs), which have amassed a total of Rs 34,052 crore as of the end of October.
Reviewing the DMF operations on Tuesday evening, CM Majhi emphasised that the spending must be focused on improving schools, colleges, healthcare, water supply, and transportation in mining-affected areas.
The state currently has DMFs in 11 out of 30 districts where mining operations are conducted. So far this fiscal year, the state has spent 55 per cent of the total funds collected, officials said.
The DMF is a statutory, non-profit fund, for every Indian district affected by mining-related operations that uses a portion of the revenue from mining operations (collected from leaseholders).
These funds are used for developmental and welfare projects, addressing adverse mining impacts, and creating sustainable livelihoods.
The CM directed the Steel & Mines Department Secretary to submit an annual report along with the audit report for each DMF.
Officials were also instructed to take steps to prevent pollution in human habitations located close to mining areas.
He said the DMF funds collected from the mining of minor minerals will be used in any part of the district.
It was resolved in the meeting that the DMF Trust Board will hold its sittings and ensure that the projects undertaken by it are expedited, a statement said.
It was resolved that districts where annual DMF collection exceeds Rs 10 crore must establish an Endowment Fund. This fund will be invested in government securities, bonds, and scheduled bank Fixed Deposits (FDs), it added.
CM Majhi said this fund would be used to create livelihood for future generations in areas where mining activities have been stopped for any reason or after the depletion of minerals.
