Funds Crunch hits Naveen Government after Mines Ministry rules out removal of 30% Cap on DMF Funds

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By Our Correspondent

BHUBANESWAR/JODA/KOIRA: The Naveen Patnaik Government in Odisha , which has been trying very hard to contain the spread of COVID-19 in the State, found in sticky wicket after the Union Mines Ministry ruled out to remove the 30% cap on DMF Funds to be used to for COVID-19 medical and health services.  

Odisha DMF Funds money deposited at RBI Accounts is about to worth Rs 6,518.14 crore under till the end of March 2020. Odisha is entitled to utilise Rs 1,955 crore, which is 30% of the unutilised fund. Besides, that Rs 17,000 crore deposited at RBI account of Odisha Mineral Bearing Areas Development Corporation (OMBADC) and the Compensatory Afforestation (CAMPA). The Rs 17,000 crore fund was born when the Supreme Court on August 2, 2017 levied a compensation charge on miners for violations of environmental laws.

Earlier, the Ministry had announced to allow the States to use 30% of the total Funds for COVID-19 health services under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in mineral bearing districts while the Pataik Government had written to Union Coal, Mines and Parliamentary Affairs Minister Prahallad Joshi but the Ministry rejected Odisha’s request, sources said. As per the DMF Funds and PMKKKY fund can only be utilised in mineral bearing districts having at least 1 positive COVID-19 case.

Chief Minister Patnaik in his letter had mentioned that said Khurda, Jajpur, Cuttack and Bhadrak were adjacent to major mineral bearing districts and also needs DMF Funds.  BJP MLA from Keonjhar Sadar Mohan Majhi, one of the trustees of Keonjhar DMF Trust Board, said the State Government has already taken 30 %of the fund for expenditure on healthcare to fight COVID-19. He said he would strongly oppose any further move to withdraw more amount from the corpus fund of DMF, OMBADC and CAMPA.

The Odisha Government was expecting withdraw 60% funds from District Mineral Foundation Funds of Rs 6,518.14 crore and Rs 17,000 crore deposited at RBI account of Odisha Mineral Bearing Areas Development Corporation (OMBADC) and the Compensatory Afforestation (CAMPA),  for COVID-19 relief and restoration works will hit hurdles.

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