Mines Ministry to Monitor DMF Fund Use in Odisha

The Ministry of Mines is set to establish a dedicated Programme Management Unit (PMU) to oversee the utilisation of District Mineral Foundation (DMF) funds across the country, with a sharp focus on Odisha — the state holding the largest share of such funds.
Odisha has collected over Rs 30,000 crore under the DMF scheme, which accounts for nearly 30 per cent of the nationwide corpus. However, official data reveals that only Rs 1,867.80 crore has been utilised so far — just six per cent of the total collection. The glaring underutilisation and reports of fund diversion have raised serious concerns at the central level.
The PMU will be tasked with ensuring timely, transparent, and effective use of DMF funds, especially under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), which mandates that these resources be used for the welfare and development of communities affected by mining activities.
Reports of irregularities have emerged from several districts in Odisha. In Sundargarh, which has received Rs 6,405 crore in DMF funds, only Rs 860 crore has been spent. Misuse of funds has been flagged, including the purchase of high-end vehicles for district police and the construction of a boundary wall at the Sundargarh Circuit House—projects that fall outside the primary scope of mining-affected community welfare.
Prompted by concerns raised by a parliamentary panel regarding widespread fund diversion in various states, the Mines Ministry initiated the creation of the PMU. This unit will not only monitor ongoing projects but also help draft new guidelines, standard operating procedures (SOPs), and provide technical assistance to central and state agencies.
“The PMU will regularly assess the effectiveness of DMF fund utilisation and suggest necessary interventions. It will maintain a monthly list of non-performing or non-reporting districts and alert the respective state governments accordingly,” the ministry stated.
A key function of the PMU will be to monitor and expedite pending legacy audits dating back to the inception of DMFs. The audits are crucial for maintaining transparency and accountability in fund utilisation. Once completed, audit findings and annual reports will be uploaded to the national DMF portal for public access.
In 2024, the Centre issued revised PMKKKY guidelines to streamline DMF fund deployment and reinforce its focus on sustainable development in mining-affected regions. The establishment of the PMU is expected to bring in tighter scrutiny and ensure that the vast resources collected under DMF are used efficiently and for their intended purpose — improving the lives of those impacted by mining operations.