Business · India Bureau
CAG audit uncovers ₹1,662 crore misuse in mining welfare fund
A government audit has identified significant irregularities in the Pradhan Mantri Khanij Kheter Kalyan Yojana, with over ₹1,600 crore spent in violation of established guidelines. The findings raise questions about accountability in the administration of funds meant for mining-affected communities.
LSN India ·
The Comptroller and Auditor General has flagged substantial deviations in the utilization of the Distressed Mineral Funds, revealing that nearly ₹1,662 crore was deployed outside prescribed norms, according to its latest audit report. The review identified ₹983.32 crore that was spent in villages unaffected by mining operations, while an additional ₹679.14 crore was sanctioned for projects that fell outside the permissible framework of the PMKKKY scheme.
These findings represent a significant oversight in the implementation of welfare initiatives designed specifically to benefit communities bearing the brunt of mining-related environmental and social impacts. The misallocation suggests a lack of rigorous verification mechanisms in identifying eligible beneficiaries and validating proposed projects against scheme guidelines.
The audit report underscores the need for stricter oversight and more transparent procedures in the deployment of DMF resources. Officials will be expected to address the compliance gaps and implement corrective measures to ensure future allocations adhere strictly to the scheme's objectives and eligibility criteria.
The irregularities documented by the CAG are likely to prompt administrative action and calls for enhanced monitoring frameworks to prevent similar deviations in the future. The findings add to growing concerns about the effective implementation of mineral welfare schemes across India's mining-dependent regions.