NHRC seeks ATR from Odisha CS over underutilisation of DMF funds

IANS May 12, 2025 177 views

The National Human Rights Commission has intervened in a critical issue of fund mismanagement in Odisha's mining regions. Rights activist Manoj Jena highlighted how significant DMF funds remain unused despite mining districts facing severe developmental challenges. The NHRC has directed the Odisha Chief Secretary to submit a detailed report within two weeks explaining the underutilization. This intervention could potentially trigger substantial reforms in how mineral-rich districts allocate and spend their development funds.

"Why, despite provisions under law... there is huge negligence in spending of development funds?" - Manoj Jena, Rights Activist
Bhubaneswar, May 12: The National Human Rights Commission (NHRC) has directed the Chief Secretary of Odisha to submit an Action Taken Report (ATR) over the allegations of underutilisation of District Mineral Foundations (DMF) funds in various mining-affected areas of the state.

Key Points

1

NHRC seeks Action Taken Report from Odisha Chief Secretary

2

Over Rs 18,000 crore DMF funds remain unspent

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Mining districts lack basic development infrastructure

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Rights activist challenges fund utilization negligence

The NHRC has also directed the Chief Secretary to submit the ATR within two weeks of receipt of the order. The apex rights body issued the order while hearing a plea filed by rights activist Manoj Jena.

“The complainant has drawn the attention of the Commission over the issue of underutilisation of DMF Funds in Odisha. Further, Odisha has collected over Rs 30,000 crore in DMF funds, but nearly Rs 18,000 crore is still unspent, leaving mining-affected areas lacking in basic services like healthcare and clean water. He urges the concerned authorities to use the funds properly, involve local communities, and ensure transparency,” reads the order.

The NHRC also termed the allegations made in the complaint by Jena as serious violations of the Human Rights of the people residing in mining-affected areas across the state.

The rights activist, in his complaint, raised questions over the sheer negligence on the part of the district administration and local MLAs and MPs in properly utilising the DMF fund in their respective districts for the socio-economic uplift of people in areas impacted by mining operations.

“Why, despite provisions under law with district Collectors as chairpersons of DMF trusts and the local MP and MLAs being the members of such forums, there is huge negligence in spending of development funds? It is a serious violation of the right to development of the people in the mining area,” stated Jena.

He further noted that the mining sector contributes about 10 per cent to the Gross State Domestic Product in Odisha. Jena alleged that in spite of all these growths, the benefits are not being substantially transferred to the people in mining areas in changing their vulnerable condition.

The rights activist further added that the major contributor districts such as Keonjhar, Sundergada, Jharsuguda, Jajpur, Koraput and Angul remain backward in terms of human development, access to healthcare, sanitation, safe drinking water, basic amenities, condition of women and children, employment and livelihood, and environmental conditions.

He alleged the fund created at the Odisha Mineral Bearing Area Development Corporation is also largely unspent. He urged the commission to recommend that the state government take necessary action against the errant government officers for the failure of utilisation of DMF funds, frame a time-bound for the spending of the funds and carry out a social audit of the DMF fund involving local people and different domain experts.

Reader Comments

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Pritam S.
This is shocking! ₹18,000 crore lying unused while people suffer without basic amenities. Our mineral wealth should benefit locals first. Kudos to Manoj Jena for bringing this to light. Hope NHRC's intervention brings accountability. #OdishaDevelopment
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Ananya K.
Typical bureaucratic delay 😤 Funds are collected but never reach those who need them most. Why can't we have transparent systems like Gujarat's DMF portal that shows real-time expenditure? Odisha govt should learn from best practices.
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Rajesh M.
I'm from Keonjhar and can confirm the ground reality. Mines make crores but our villages still don't have proper roads or schools. Local politicians only remember us during elections. When will this change?
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Smita P.
While the NHRC's action is welcome, we need stronger systems. Maybe the funds should be directly managed by local panchayats instead of bureaucrats? At least they're accountable to the people every 5 years.
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Kunal D.
This isn't just an Odisha problem - many mineral-rich states face similar issues. We need a national policy for DMF fund utilization with strict timelines. The 'chalta hai' attitude must go!
M
Meena R.
The social audit recommendation is crucial! In my village in Rajasthan, we saw how community monitoring improved MGNREGA fund usage. People's participation =

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