To ensure that money from a mine is solely used in regions affected by mining operations, the Odisha government has implemented a proportionate distribution system for District Mineral Foundation (DMF) monies among mining-affected districts. The Planning and Convergence Department issued a decision on June 3 stating that DMF payments received from a mine shall only be used in the regions of that particular mine that are directly and indirectly impacted in a 70:30 ratio. places between 15 and 25 kilometers from a mine border will be regarded as indirectly impacted, but places inside a 15-kilometer radius will be regarded as directly affected.
The government has made it clear that DMF funding cannot, under any circumstances, be used further than 25 kilometers from a mine’s boundaries. The resolution also covers circumstances in which a mine’s mining-affected region spans multiple districts. In these situations, the affected districts will receive the DMF monies from that mine in proportion to the size of the mining-affected region that falls within each district.
The Director of Mines and Geology has been entrusted with working with the Odisha Space Applications Centre (ORSAC) to gather geographic information and identify mining-affected regions in various districts in order to ease implementation. The relevant District Collectors will be informed of the identified facts.
The district-wise portion of DMF funding associated with a mine shall be determined by the Deputy Director of Mines of the district in which the mine is situated. The DMF Support Cell of the Planning and Convergence Department and the Director of Mines and Geology will get copies of the distribution information, which will be sent to collectors of nearby impacted districts upon clearance from the relevant District Collector.
The new sharing mechanism, which was issued on the Governor’s orders, will take effect on June 1, 2026. More fairness and transparency in the use of DMF resources are anticipated as a result of the action, especially where mining operations impact communities outside of district lines.
