The Union Ministry of Mines reported that till January 2022, the cumulative accrual of DMF fund in the country was Rs 59,129.86 crore out of which Odisha has built up the highest of Rs 16,952.64 crore. The amount is collected from mining companies engaged in mining operation in Odisha since 2015. About 90 percent of the fund comes from coal and other major mineral mines. The State also has got mineral royalty of Rs 7, 843.81 lakh in 2019-20(revised) excluding coal and minor Minerals.
But it seems the Government of Odisha is not much concerned about this dedicated fund of the affected people in the mining districts. It has been observed that the State hasnot been properly spending this very exclusive revenue collected at the district level ignoring the rules of MMDR Act (amendment) 2015 and 2021.
The amount spent as per guideline ofPradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY)is very less than the amount collected from companies as per legal provision.
The amendment of MMDR Act 1957 in 2015 with inclusion of clause 9B has empowered the Government to collect revenue from mining companies that is available with the locals/district and to spend the considering the local need and priorities of the affected people and the areas. But the fact is virtually the State has superseded the rules of spending by arbitrarily allocating funds out of the district pools.
Odisha is a rich mineral bearing State having major mining operation for last few decades and it will continue but the State has not set any example in handling many of the emerging issues out of long time mining. The State has experienced the worst example of illegal mining that is proved by the Shah Commission. Besides, there is illegally conversation of forest land. There are many instances of forcibly evicting people without proper public consultation, environmental assessment and socioeconomic rehabilitation package.