Odisha mining funds diverted to stadiums, roads instead of communities

An audit by the Comptroller and Auditor General has exposed significant irregularities in how Odisha's District Mineral Foundations (DMFs) have deployed funds meant to benefit mining-affected communities. Six audited DMFs collected more than ₹22,500 crore, yet none established the statutorily required Endowment Funds to provide long-term support for affected populations.

Instead of prioritizing rehabilitation and resettlement of impacted communities, the funds were allocated to stadium construction, road development, and other infrastructure projects that fall outside the intended scope of mineral foundation spending. This diversion has drawn sharp scrutiny from the audit body, highlighting governance lapses in resource allocation.

The Endowment Fund was mandated under mining regulations to ensure sustainable, long-term financial security for communities adversely affected by mineral extraction activities. The failure to establish these funds represents a breach of statutory obligations and leaves vulnerable populations without the intended financial safety net.

The CAG's findings underscore persistent challenges in implementing corporate social responsibility mechanisms in India's mining sector. The audit report is expected to trigger administrative action and review of fund management practices across Odisha's mineral-rich districts to ensure compliance with regulatory frameworks and proper deployment of resources for community welfare.