Bhubaneswar: The Odisha government has introduced a new mechanism for the proportionate sharing of District Mineral Foundation (DMF) funds among mining-affected districts, aiming to ensure that resources generated from mining activities are distributed fairly based on the extent of impact in each district.

According to a notification issued by the state government, DMF funds collected from a mine will be utilised only in areas directly and indirectly affected by that particular mining operation. The government has prescribed a 70:30 ratio for fund utilisation between directly affected and indirectly affected areas.

As per the notification, areas located within a 15-kilometre radius of a mine boundary will be considered directly affected, while areas situated between 15 km and 25 km from the mine boundary will be treated as indirectly affected. The government has also made it clear that DMF funds cannot be utilised beyond a 25-kilometre radius from the mine.

The notification addresses situations where the impact zone of a mine extends across more than one district. In such cases, DMF funds generated from the mine will be shared among the affected districts in proportion to the mining-affected area falling within each district.

To implement the new framework, the Director of Mines and Geology has been tasked with coordinating with the Odisha Space Applications Centre (ORSAC) to obtain geographical data and identify mining-affected areas across districts. The identified details will then be communicated to the respective district collectors.

The notification further states that the Deputy Director of Mines in the district where a mine is located will calculate the district-wise share of DMF funds. After obtaining approval from the concerned district collector, the allocation details will be shared with neighbouring district collectors, along with the Director of Mines and Geology and the DMF Support Cell of the Planning and Convergence Department.

The newly notified sharing mechanism came into force on June 1, 2026.