Evaluate the National Mineral Policy with reference to the 'DMF' (District Mineral Foundation) in Odisha.

The National Mineral Policy (NMP) 2019 was introduced with a focus on sustainable mining, transparency, and equitable distribution of mineral wealth. A central pillar of this policy is the District Mineral Foundation (DMF), a statutory trust established under the MMDR Amendment Act, 2015, designed to ensure that mining-affected communities are the primary beneficiaries of mineral extraction.

1. The Philosophy of NMP 2019 & DMF

The NMP 2019 emphasizes the "Social License to Operate." It views minerals as a shared natural resource where Inter-generational Equity must be maintained. The DMF serves as the financial vehicle to realize this vision by collecting a percentage of royalty from miners to fund local development.

2. Evaluation of DMF in Odisha: A Leader with Challenges

Odisha is the pioneer in DMF implementation, being the first state to frame its own DMF Rules (2015). However, an evaluation reveals a mix of unprecedented accruals and implementation gaps.

A. Successes and Strengths

  • Highest Collection: Odisha leads India in DMF accruals, with over Rs. 25,000 crores collected by 2026. The "Big Three" districts—Keonjhar, Sundargarh, and Angul—account for the bulk of this fund.
  • Priority Sector Funding: Following the PMKKKY (Pradhan Mantri Khanij Kshetra Kalyan Yojana) guidelines, Odisha mandates that 60% of funds must be spent on High Priority Areas like Drinking Water, Healthcare, and Education.
  • Institutional Innovation: The state has launched the DMF Portal for real-time tracking and introduced Project Management Units (PMUs) to speed up project execution.

B. Critical Gaps and Issues

  • Top-Down Approach: Despite the NMP 2019’s emphasis on community participation, the Gram Sabhas in many mining areas (like the Sukinda or Joda belts) are often bypassed. Decisions are mostly taken by District Administrations.
  • Diversion of Funds: There are reports of DMF funds being diverted to urban infrastructure (like stadiums or flyovers) rather than addressing the health hazards (silicosis/pollution) faced by the directly affected tribal populations.
  • Low Utilization Rate: While collection is high, the actual expenditure on the ground has historically lagged, leading to "parking" of funds in bank accounts instead of immediate welfare delivery.

3. The Way Forward: Aligning with NMP 2019

To truly fulfill the National Mineral Policy objectives, Odisha needs to:

  • Identify Beneficiaries: Move from "area-based" development to "person-based" benefits by identifying mining-affected families.
  • Social Audit: Implement mandatory Social Audits by local communities to ensure transparency and accountability in spending.
  • Livelihood Focus: Shift focus from building "physical assets" (roads/buildings) to sustainable livelihoods and environmental restoration.

Conclusion

In conclusion, the National Mineral Policy 2019 has provided a robust framework, and Odisha’s DMF has shown the potential for transformative change. However, for the mineral hub to become a welfare hub, the state must ensure that the voices of the tribals and mining-affected people are at the heart of the decision-making process. The DMF should not just be a "second budget" for the government but a restorative fund for the people.