Abstract
Mining is essential for the economic growth of a nation. Although mining is seen as an extractive sector, it can be a partner in achieving the Sustainable Development Goals. Odisha contributes the largest value of mineral production (excluding fuel oil and atomic minerals) in the country. It is endowed with rich mineral resources with a variety of metallic and non-metallic minerals that include Chromite, Bauxite, Graphite, Iron-ore, Manganese ore and many more. The mining and quarrying subsector contributed 8.29 per cent of state GVA (relative to 2.26 per cent at the all-India level) as per the advance estimates (AE) for 2021-22 at current prices. In terms of reserves in India, Odisha accounts for 96 per cent of Chromite, 92 per cent of Nickel, 51 per cent of Bauxite, 33 per cent of Iron ore, 43 per cent of Manganese ore and 24 per cent of Coal reserves in the country. Government of India has formulated Pradhan Mantri Khanij Kshetra Kalyan Yojana which is implemented by the District Mineral Fund (DMF) using the funds accruing to the DMF. These funds are used for the welfare of persons and areas affected by mining related operations. The DMF offers an opportunity to correct this historical injustice. It recognizes the right of people to benefit from the land and its natural resources, traditionally held by them either individually or as a community. DMF Keonjhar is largest DMF in the country. In its current state, DMF accrual will only flow from the extracting companies to the various departments of the Government, without passing through the hands of the citizens. It is proposed that all or part of the accrual be invested in an Alaska-type permanent fund and an annual dividend from the investment be transferred directly to citizens, so that they can decide how it is to be spent. Mineral wealth need not be a curse. It can even be a blessing, provided the right measures are taken to transform it into sustainable development.
Keywords: Mining, Minerals, Socio-economic development, DMF, Basic Income, Wealth Fund, Koenjhar, Odisha,, India, JEL Code: L71, L78, O14, Q01, Q32, R11, R58
