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DMF funds bring no relief to mining-affected areas

PNN
Updated: April 12th, 2026, 09:51 IST
in State, Top Stories
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Mines

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Joda: Mineral-rich Keonjhar district continues to lack development in mining-affected areas despite the availability of substantial funds under the District Mineral Foundation (DMF). The DMF was created to support the development of communities affected by mining activities, with a focus on improving infrastructure and basic amenities.

The state government also earns significant revenue from mining operations. However, despite more than Rs 12,000 crore lying in the district’s DMF fund, development projects in mining regions have largely remained stalled.

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Several villages in mining belts still lack proper roads, schools and access to drinking water, leaving residents deprived of basic facilities. According to official data, the district has 98 operational mines, and the state government has earned around Rs 20,000 crore in mining revenue in the current financial year.

Over the past decade, more than Rs12,000 crore has been collected by the DMF for expenditure in Keonjhar district. In addition, the government receives thousands of crores in premiums from companies that acquire mining leases through competitive bidding. As per guidelines, DMF funds are meant to be spent exclusively on the development of mining-affected areas.

However, since the fund’s inception in 2015, there has been little visible progress on the ground. Mining-affected regions such as Kiriburu, Barbil, Joda and surrounding areas, including Rugudi, Guali, Roida and others, continue to struggle with inadequate roads, lack of drinking water, poor education facilities and insufficient housing infrastructure.

Residents of these remote areas have demanded that DMF funds be utilised for setting up a super-speciality hospital, rebuilding dilapidated roads and establishing schools, including a technical institute. In Joda, where there is only one women’s college, locals have also called for the establishment of a general degree college.

Sandeep Pattnaik, president of Voice of Keonjhar, said more than Rs 12,000 crore has been collected from the Joda mining circle since 2015. He alleged that the then government misled residents by distributing a limited number of water pumps, assistive devices for persons with disabilities, and solar lights, instead of undertaking substantial development work.

He also claimed that some little-known companies that were brought in from outside the state exploited local youth in the name of training programmes. Pattnaik said the state government has now appointed a CEO to ensure proper utilisation of the DMF funds. He added that residents have high expectations about how these funds will be used.

State BJP spokesperson Satyabrata Panda said Chief Minister Mohan Charan Majhi, while in the opposition, had repeatedly raised questions over transparency and allocation of DMF funds.

After assuming office, Panda said, the government has taken initial steps to improve transparency by appointing a senior administrative officer to oversee fund allocation. He added that guidelines are being prepared to ensure the funds are used for various development projects in the district.

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