Odisha drags feet on DMF funds use, ranks 7th on project implementation

Odisha despite boasting of the highest fund accruals under the District Mineral Foundation (DMF) has turned to be a laggard state in implementing the projects.

Figures sourced from the Union mines ministry place Odisha at the top of the heap in DMF collection with the state mopping up Rs 53.64 billion (as on March 30, 2018). But in terms of implementation of projects under DMF, Odisha ranks seventh, with a utilisation rate of 15 per cent. Of the total funds accruing to DMF in Odisha, Rs 39.22 billion has been sanctioned. However, only Rs 8.16 billion of the overall proceeds has been utilized.

In the pecking order, Chhattisgarh aces other states with a utilisation rate of 76 per cent. The state ranks third in overall DMF collection and has used Rs 23.46 billion out of its approved amount at Rs 41.84 billion. Gujarat and Madhya Pradesh follow with utilisation rate of 28 per cent and 26 per cent respectively. 

Most states are sluggish to spend DMF funds. Tamil Nadu, Karantaka and Telanagana have lacklustre spending rate of below 10 per cent.

Industry stakeholders have pressed the need for enhancing DMFF utilisations. “Construction and maintenance of roads connecting mines with railway sidings and dedicated freight corridors may be considered in DMF. Representatives from the industries may be considered as members of DMF trust”, said a mining industry source.

DMF are trusts set up in the districts affected by mining, meant to be used for the welfare of the local population. Mining firms contribute to these non-profit bodies.

Project Monitoring Units (PMUs) have been established in the state's top five mining districts- Keonjhar, Sundargarh, Angul, Jharsuguda and Jajpur. These PMUs are being managed by top consultants like EY and PricewaterhouseCoopers (PwC). There is no dedicated office yet though one official has been identified as the DMF in-charge in Sundargarh district.