New Fund-Sharing Strategy for Mining Affected Districts in Odisha

The Odisha government has unveiled a new fund-sharing mechanism for District Mineral Foundation (DMF) resources, allocating funds based on a 70:30 ratio between directly and indirectly affected areas. This initiative aims to ensure that mining-impacted districts receive fair compensation for the effects of mining activities. The policy outlines specific guidelines for fund allocation, including a strict 25-kilometer radius limit for fund usage. Additionally, it addresses cross-district impacts, ensuring equitable distribution based on the extent of mining-affected areas. The Director of Mines and Geology will work with the Odisha Space Applications Centre to accurately identify these regions.

By Narendra Chaudhary Jun 5, 2026, 09:41 IST

Odisha's Innovative Approach to DMF Fund Distribution

Bhubaneswar: The Odisha government has introduced a new funding model that allocates District Mineral Foundation (DMF) resources based on a 70:30 ratio. This initiative aims to ensure equitable distribution of funds among districts impacted by mining activities, whether directly or indirectly. A resolution from the Planning and Convergence department, dated June 3, specifies that DMF funds generated from a mining site can only be utilized in regions directly affected by that specific operation.

According to the new guidelines, areas within a 15-kilometer radius of a mine will be classified as directly affected, while those located between 15 and 25 kilometers will be deemed indirectly affected. The government has made it clear that DMF funds cannot be allocated beyond a 25-kilometer radius from the mine under any circumstances. Additionally, the policy addresses scenarios where the mining impact zone crosses district lines.

In such instances, DMF funds will be distributed among the impacted districts based on the proportion of the mining-affected area within each district. To ensure effective implementation, the Director of Mines and Geology will collaborate with the Odisha Space Applications Centre (ORSAC) to gather geographical data and accurately pinpoint mining-affected regions.