The Odisha government has introduced a new mechanism for the sharing and utilisation of District Mineral Foundation (DMF) funds among mining-affected districts, aiming to ensure that the funds are spent exclusively on communities impacted by mining activities. The new system came into effect on June 1.

The Planning and Convergence Department has issued a resolution outlining the revised framework, which is expected to enhance transparency, accountability, and targeted development in mining regions.

Funds to Be Spent Within Mining Impact Zones

Under the new guidelines, DMF funds generated from a mine will be utilised only in areas directly and indirectly affected by that specific mining operation.

The government has stipulated that 70 percent of the funds will be allocated to directly affected areas, while 30 percent will be earmarked for indirectly affected regions.

Areas located within a 15-kilometre radius of a mine’s boundary will be classified as directly affected. Regions situated between 15 km and 25 km from the mine boundary will be considered indirectly affected.

Importantly, the state government has clarified that DMF funds cannot be used in any area beyond a 25-kilometre radius from the mine under any circumstances.

New Formula for Inter-District Fund Sharing

The resolution also introduces a structured mechanism for sharing DMF funds when the impact of a mine extends across multiple districts.

In such cases, funds will be distributed among affected districts based on the extent of mining-affected area falling within each district’s jurisdiction. The move is intended to ensure equitable allocation of resources and prevent disputes over fund distribution.

ORSAC to Help Identify Affected Areas

To implement the new framework, the Director of Mines and Geology will work closely with the Odisha Space Applications Centre (ORSAC) to map and identify mining-affected regions using geographical data.

The identified areas will be communicated to the respective district collectors. Subsequently, the Deputy Director of Mines in the district where the mine is located will calculate the district-wise share of DMF funds after obtaining approval from the collector.

The information will then be shared with neighbouring districts, the Director of Mines and Geology, and the DMF Support Cell under the Planning and Convergence Department.

Part of Larger Transparency Reforms

The latest initiative is part of a broader effort by the Odisha government to strengthen governance and accountability in the utilisation of DMF funds.

Last year, the state amended the District Mineral Foundation Rules, 2015, introducing measures to safeguard mining revenues for local development. The amendments prohibited the transfer of DMF funds to the state treasury, state-level funds, the Chief Minister’s Relief Fund, or any unrelated government schemes.

Officials believe the new mechanism will ensure that mining-affected communities receive a fair share of the benefits generated from mineral extraction while promoting balanced and sustainable development in affected regions.

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In a significant push to enhance Odisha’s scientific infrastructure and innovation ecosystem, State Minister for Science & Technology Sri Krushna Chandra Patra met Union Minister for Science & Technology Dr. Jitendra Singh in New Delhi. The high-level meeting focused on aligning Odisha’s regional scientific priorities with the Centre’s national missions to accelerate technological growth in the state.

Proposal for World-Class Science City in Bhubaneswar

During the meeting, Sri Patra sought central assistance for the establishment of a world-class Science City in Bhubaneswar. The Odisha government has already identified 100 acres of land on the outskirts of the capital for the ambitious project.

The proposed Science City is envisioned as an interactive knowledge hub featuring modern exhibits and immersive learning spaces aimed at inspiring students and young innovators.

Space Innovation Hub to Boost Startups

Both ministers also discussed the creation of a dedicated Space Innovation Hub in Odisha to promote research and support emerging startups in the space-tech sector.

The initiative aims to leverage the technical expertise of the Odisha Space Applications Centre (ORSAC) along with established research institutions such as VSSUT, Burla. The goal is to position Odisha as a leading player in satellite data applications and space technology entrepreneurship.

Bio e-Cells Under National Bio-E3 Policy

Aligning with the Centre’s Bio-E3 Policy, the ministers deliberated on setting up Bio e-Cells in Odisha. These specialized cells will focus on high-performance biomanufacturing, promotion of eco-friendly technologies, and enabling research institutions to translate laboratory innovations into commercially viable biotech products.

Centre Assures Full Support

Expressing gratitude, Sri Patra thanked Dr. Jitendra Singh for his continued mentorship and technical cooperation. He emphasized that strong coordination between the State and Centre would play a crucial role in transforming Odisha into a leading scientific and industrial hub.

Dr. Singh praised the Odisha government’s proactive approach and assured full central support. He highlighted that the state’s scientific progress aligns with the broader vision of ‘Viksit Bharat’ and reaffirmed the Centre’s commitment to providing necessary technical expertise and financial assistance for the proposed projects.

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