Chief Secretary A P Padhi said this to District Collectors while chairing the first meeting of the recently formed State Level Committee (SLC) on DMF.
District Collectors as heads of the district level committees participated the meeting though video conferencing.
"Spend the DMF fund most judiciously prioritising the mining affected areas," Padhi told the Collectors.
Replying to a question, steel and mines secretary R K Sharma said so far above Rs 1,100 crore have been collected under the DMF.
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While participating in the meeting, Sharma suggested the District Collectors to look in to the amended ODMF Rules and guidelines and plan the collection and expenditures of funds accordingly.
He said the amended rule shows, in case of major minerals, 30 per cent of royalty for mining leases granted before January 12, 2015 and ten per cent of royalty of mining leases granted after this date were to be collected as Mineral Fund.
For minor minerals, 30 per cent of royalty for leases not granted through auction and ten per cent of royalty for leases granted through auction would be collected, he said.
It was decided that the Executive Committees of the DMFs may consider the projects like establishment of old age home, district rehabilitation centres, homes for mentally retarded persons, drug de-addiction centres etc. For mining affected areas and people, Sharma said.
Development Commissioner R Balakrishnan suggested the Collectors to establish last-mile connectivity to remote and cut-off habitations for delivery of essential services.
The districts were also asked to utilise the technical and manpower expertise of the line departments for preparation and implementation of the projects under DMF.
The funds accruing to the DMF would be utilised for overall development of the area whose ecology has been degraded by rampant mining. It would come up with CSR (Corporate Social Responsibility) interventions in areas like education, health, roads and drinking water.
Section 9B(2) of the MMDR Act empowers the state government to prescribe the manner in which DMFs would work for the interest and benefit of the affected persons.