Odisha tops District Mineral Foundation (DMF) collections in India

Odisha has emerged as the top-performing state in India for District Mineral Foundation (DMF) fund collection, amassing a staggering ₹31,324 crore as the initiative marks its 10th year. This figure far surpasses all other mineral-bearing states, highlighting Odisha’s leadership in leveraging this key development mechanism.

Key Highlights of DMF Collections:

• Odisha’s Dominance: Ranked number one in India for reserves of minerals such as iron ore, coal, bauxite, and chromite, Odisha’s collection of ₹31,324 crore is more than double that of the second-ranked state.
• Top 5 States:
  1. Odisha: ₹31,324 crore
  2. Chhattisgarh: ₹15,200 crore
  3. Jharkhand: ₹13,791 crore
  4. Rajasthan: ₹10,833 crore
  5. Madhya Pradesh: ₹8,605 crore
• Highest Collecting District: Keonjhar district of Odisha alone has collected the highest DMF fund in the country, at ₹13,154.67 crore.

About District Mineral Foundation (DMF):

• Introduction: DMF was introduced through the Mines and Mineral (Development and Regulation) (MMDR) Amendment Act 2015, with the objective to help people and areas affected by mining activities.
• Governing Guidelines: The DMF fund is governed by the guidelines of the Pradhan Mantri Khanij Kshetra Kalyan Yojna (PMKKKY).
• Nationwide Reach: DMFs have been established in 646 districts across 23 States.
• Cumulative Collections & Spending:
  • Cumulative collection under DMF: ₹1,08,219.42 crore.
  • Amount allocated: ₹90,608.87 crore.
  • Amount spent: ₹57,381.72 crore.
• Mandated Priority Sectors (under PMKKKY): DMFs are mandated to spend funds on high-priority sectors to improve the lives of people in mining-affected areas. These include:
  • Drinking Water
  • Environment Preservation and Pollution Control measures
  • Health Care
  • Education
  • Welfare of Women and Children
  • Welfare of aged and differently-abled
  • Skill Development and Livelihood generation
  • Sanitation
  • Housing
  • Agriculture and Animal Husbandry
  • Other priority sectors.
• Revised PMKKKY Guidelines (January 2024): To ensure effective implementation, the Central Government issued revised PMKKKY guidelines. Key features include:
  • Utilisation of at least 70% of DMF funds in directly affected areas and high priority sectors.
  • Mandatory audit of DMF accounts by C&AG.
  • Inclusion of elected representatives (MPs, MLAs, and MLCs) in the Governing Council.
  • Grievance redressal and compliance mechanisms.
  • Establishment of a State Level Monitoring Committee under the chairmanship of the Chief Secretary.

(Source: TH & PIB)