Odisha logs highest DMF collection among all states

State mops up Rs 274 cr for DMF, Rs 8.2 crore towards NMET; Chhattisgarh comes a close second with Rs 251 cr for DMF

Odisha has pipped other mineral-bearing states in collecting funds for the District Mineral Foundation (DMF) mandated under the amended Mines and Minerals Development & Regulation (MMDR) Act.

Data released by the central mines ministry says Odisha tops the list, mopping up Rs 274 crore for DMF and also Rs 8.2 crore towards National Mineral Exploration Trust (NMET). Chhattisgarh has finished a close second with a realisation of Rs 251 crore towards DMF fund.

“Our DMF collection is across minerals like coal, iron ore, limestone and manganese. All operational iron ore mines are paying to DMF along with the royalty. Only the arrear collection with retrospective effect (from January 12, 2015) has been hit since the matter is sub judice with the Delhi High Court”, said Deepak Mohanty, director of mines (Odisha).

Many other mineral bearing states like Andhra Pradesh, Gujarat, Jharkhand, Karnataka, Maharashtra, Rajasthan and Telangana are yet to realise any amount for DMF.

According to the guidelines listed in the amended Mines and Minerals Development & Regulation (MMDR) Act, miners who have bagged leases prior to January 12, 2015 would have to fork out 30 per cent of the royalty amount as DMF contribution. An industry estimate has put the figure for such miners at Rs 1500 crore in case of Odisha where the state government has decided to collect the DMF contribution from leaseholders from back date. The new miners need to contribute an amount equal to 10 per cent of the royalty.

The funds accruing to the DMF would be utilised for overall development of the area whose ecology has been degraded by rampant mining. It would come up with CSR (corporate social responsibility) interventions in areas like education, health, roads and drinking water.
 
Section 9B(2) of the MMDR Act empowers the state government to prescribe the manner in which DMF would work for the interest and benefit of the affected persons. The foundation is meant for the marginalized people and devastated land of the district where the quality of life and environment stands substantially degraded in recent times due to exponential growth of mining and many other related activities.