A Comptroller and Auditor General audit has identified multiple lapses in carrying out the Pradhan Mantri Khanij Kshetra Kalyan Yojana in Chhattisgarh. The review highlights problems with oversight, policy shifts, diversion of resources, procurement breaches, unproductive outlays and limited openness in handling the District Mineral Foundation Trust fund of Rs 13,101 crore from 2015-16 to 2023-24.
Introduced in 2015, the scheme seeks to fund development work for communities affected by mining through the trusts, which draw contributions from lease holders.
The trusts collected Rs 13,101 crore by 2023-24 and used Rs 10,253 crore, or 78 percent, on projects across the state.
The audit noted changes to the CGDMFT Rules, 2015, that reduced focus on mining-affected groups. The term “Affected People” was broadened to cover all residents or workers in impacted zones, allowing spending throughout mining districts without clear limits.
As a result, Rs 709.47 crore supported free distributions in directly and indirectly affected areas. Review of 30 cases worth Rs 28.11 crore showed allocations occurred without set standards or named recipients, directing money to wider community schemes.
Despite outlays of Rs 4,536.58 crore, or 81 percent of available funds, 754 of 1,734 directly affected villages in 11 sampled districts stayed uncovered.
Trust money also went to ineligible items such as welcome gates, collectorate gardens, office renovations, purchases, vehicles and grants to private schools.
Resources were used without master plans, vision documents or annual plans for lasting livelihoods in mining zones.
Identification of affected areas was delayed from five months to five years after trusts formed, with Rs 1,060.70 crore assigned beforehand. Lists of directly affected villages came via collector orders but were not formally notified under the rules.
Weak planning and oversight led to Rs 41.80 crore spent on unfinished works and unused assets including an art centre, biogas plants and production units. Another Rs 30.73 crore covered construction and purchases for government offices outside priority zones.
Agencies bought goods and services worth Rs 17.49 crore via limited quotes without open tenders and Rs 38.82 crore without technical details, breaching state purchase rules.
Key positions such as project coordinator and accountant stayed vacant. Two districts reported full shortages while four others had over half the posts empty.
The state did not apply the scheme rule for CAG audits of trust accounts. The Khanij Online portal handles major mineral payments but lacks a system for minor minerals. Form-2 for transit passes also omitted DMF details.
Trusts spent funds without approved budgets or plans in checked districts and transferred Rs 1.68 crore to the state DMF Cell against central orders, with Rs 10.82 crore still held there in March 2024. Annual accounts were not sent to panchayats or the legislature.
The CAG advised notifying affected villages, preparing plans, running social audits and improving coordination to avoid repeats.
