CAG flags irregularities in Chhattisgarh mining area welfare scheme

Raipur, Jul 15 (PTI) The Comptroller and Auditor General of India has raised multiple irregularities in the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) funded through District Mineral Foundation Trusts (DMFT) in Chhattisgarh. The audit found that DMFT funds amounting to Rs 30.73 crore were spent on construction, renovation, beautification works and procurement for various government offices. The report tabled in Chhattisgarh assembly on Tuesday flagged financial irregularities, lapses, policy deviations, fund diversion, tender violations and transparency gaps involving several crores of rupees. In its performance audit on the implementation of PMKKKY including DMFT, covering the period from 2015-16 to 2023-24, the CAG found that DMFT funds amounting to Rs 30.73 crore were spent on construction, renovation, beautification works and procurement for various government offices, which fell outside the priority sectors prescribed under the Central scheme. Launched in 2015, PMKKKY aims to improve the welfare of people and areas affected by mining operations through DMFT fund, which receive contributions from the holders of a mining lease. According to the report, DMFTs in Chhattisgarh received contributions of Rs 13,101.65 crore till 2023-24, of which Rs 10,253.22 crore, or 78 per cent, was spent on various development works across the state. The audit noted that while the state's Khanijonline portal facilitates payment of royalty and DMF contributions for major minerals, no similar online mechanism existed for minor minerals. Although the Mineral Resources Department has developed the Khanijonline 2.0 portal to address this gap, it is yet to be implemented. The CAG observed significant non-compliance with DMFT Rules, stating that trust funds were utilised without preparation of annual budgets and plans in the districts examined. It also found that social audits of projects funded by the Trusts were not conducted. The report highlighted deviations in the Chhattisgarh DMFT Rules, 2015, from the PMKKKY Guidelines, 2015, particularly in the definition of "affected people". While the Central guidelines focus on mining-affected communities, the state rules expanded eligibility to include all persons residing or working in affected areas, thereby widening the scope beyond the intended beneficiaries. The audit found that Trusts allocated Rs 709.47 crore for distribution of free items in mining-affected areas. However, scrutiny of 30 cases involving Rs 28.11 crore revealed that the items were distributed randomly without any defined eligibility criteria or identification of beneficiaries. "These variances led to funds being utilised on broader community schemes without focusing on mining-affected population, contrary to the scheme objectives," the report said. Although trusts utilised Rs 4,536.58 crore, or 81 per cent of available funds, 754 out of 1,734 directly affected villages in the 11 sampled districts remained uncovered, it said. The audit further noted that "affected areas" were identified with delays ranging from five months to 65 months after establishment of the Trusts. During this period, works worth Rs 1,060.70 crore were sanctioned without identifying eligible mining-affected areas. The audit pointed out that lists of directly affected villages were issued through office orders of district collectors instead of being formally notified in accordance with DMFT Rules. The report attributed inadequate planning, monitoring and due diligence to unfruitful expenditure of Rs 41.80 crore on incomplete projects and unutilised assets, including art and culture centres, biogas power plants, poultry units and mushroom production centres. The Trust funds of Rs 30.73 crore were utilised for construction/ renovation/beautification works, procurement etc. for various Government offices which were outside the priority area stipulated in PMKKKY, it added. The CAG also found procurement irregularities. The implementing agencies procured items and services amounting to Rs 17.49 crore on the basis of limited quotations without inviting open tenders and Rs 38.82 crore without stipulating technical specification, thereby not complying with the provisions of the Chhattisgarh Store Purchase Rules, 2002, it said. The audit noted that mandatory meetings of the State Level Monitoring Committee and State Level Review Committee were not held as frequently as required. It also flagged poor transparency, noting that websites of all 12 sampled districts failed to disclose or regularly update key information such as composition of Trusts, lists of mining-affected areas and beneficiaries, quarterly contributions received, status of works, annual plans, budgets and minutes of meetings. The report also highlighted severe manpower shortages in DMFTs. Bemetara and Mahasamund districts had 100 per cent vacancy in key positions, while Balod, Bilaspur, Raigarh and Rajnandgaon recorded more than 50 per cent shortages in posts such as Project Coordinators, Assistant Project Coordinators, Accountants and Assistants, it said. To improve implementation of PMKKKY, the CAG recommended that the state government immediately identify and notify mining-affected people and areas in the Chhattisgarh Gazette, prepare long-term master plans and vision documents aligned with the scheme's objectives, and ensure Trusts prepare annual plans and budgets with approval from governing councils to strengthen financial discipline. PTI TKP NSK