By Nageshwar Patnaik in Bhubaneswar, December 8, 2016 : Even as the Odisha government is flush with more than Rs 1,600 crore in hand under the District Mineral Foundation (DMF), the authority has been accused of not utilising the funds as per the central guidelines and rules.

Delhi based Centre for Science and Environment (CSE) deputy director general Chandra Bhushan on Thursday told ‘Bizodisha.com’ that the funds meant for poor people living in the mining areas are not spent judiciously negating the planned holistic development of people living in affected by mining related operations.

“What District Mineral Foundations bring to the people is not a grant or a donation, but their unassailable right to benefit from the resources they live on. DMF therefore is a vehicle through which the socio-economic status of the mining affected regions can be changed for the better,” he added.

Mr Bhushan was here to attend a meeting of civil society groups organised by CSE here on Thursday to discuss DMFs in the state, the implementation of the programme, and the road ahead.

DMF was instituted under the Mines and Minerals (Development and Regulation) Amendment Act, 2005. As per law, DMF has to be to be set up in all mining districts of the country and mining companies have to contribute resources equivalent to 10-30 per cent of the royalty to this fund.

Section 9B (2) of the MMDR Act empowers the state government to prescribe the manner in which DMFs would work for the interest and benefit of the affected persons.

The Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) will be implemented by the DMFs of the respective districts using the funds accruing to the DMF to ensure long-term sustainable livelihoods for the affected people in mining areas.

In the mineral rich Odisha, the mining districts are already in the process of planning for DMFs. Some districts like Kendujhar and Angul have also allocated funds for various works and projects.

The funds accruing to the DMF has to 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.

Bhushan called DMF a “game-changer”, and said that it is a vehicle through which some of the most pressing human development issues in mining affected areas can be effectively addressed.

“But unfortunately, the Odisha government in complete violation of the Central Guidelines on the expenditure from DMF, is spending the money without the consent of Gram Sabha. Not a single Gram Sabha has so far been called for the purpose and yet the district authorities have began spending the money as per their whims and caprices”, Bhusan remarked.

People in mining affected areas have been left out of the planning process which is supposed to be for their own welfare. “No consultation was done by the government when the DMF rules were being finalised. This is the reason why there is no representation of the affected communities in the DMF governing board or managing committee,” said Dileep Samal of Odisha Voluntary Health Association (OVHA). In Odisha, health remains a major challenge in the mining areas of most districts.

Bhusan criticised the state government saying that not involving people in planning is against the spirit of the law. “In no districts — particularly in Scheduled Areas – have people been consulted for identifying beneficiaries or planning as the law requires. DMF money is mining affected people’s money and they can only decide how to spend the money in their regions. It is not the government’s money,” he remarked.

The director, mines of Odisha government, Deepka Mohanty, however, denied the allegations by the CSE and others. “Money from DMF is spent as per the guidelines and the district collectors have been asked to follow the format. We will come to know about the expenditure details only at the end of this fiscal”.