₹13,101 Crore Mining Welfare Fund: CAG Finds Major Lapses in Chhattisgarh
- pradeep
- 16 minutes ago
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A Comptroller and Auditor General audit has uncovered serious lapses in the implementation of mining welfare schemes in Chhattisgarh, including diversion of funds, spending on ineligible projects, tender violations and weak monitoring.
The audit examined the utilisation of ₹13,101 crore received by District Mineral Foundation Trusts between 2015-16 and 2023-24 under the Pradhan Mantri Khanij Kshetra Kalyan Yojana. Of this amount, ₹10,253 crore—or around 78%—was spent on different works across the state. (The Indian Express)
Benefits for Mining-Affected Communities Diluted
The welfare scheme was created to support people and areas affected by mining. However, the CAG found that changes to the state’s rules expanded the definition of “affected people,” weakening the focus on communities directly impacted by mining.
Trusts allocated ₹709.47 crore for distributing free items. In the cases examined by auditors, items were reportedly distributed without clearly defined eligibility criteria or identified beneficiaries. (The Indian Express)
Hundreds of Affected Villages Left Uncovered
Despite substantial expenditure, 754 of the 1,734 directly affected villages in 11 sampled districts remained outside the scheme’s coverage.
The audit also found that funds were spent on projects such as welcome gates, gardens at collectorates, government office construction and renovation, official vehicles, office purchases and grants to private educational institutions. (The Indian Express)
₹41.8 Crore Spent on Unproductive Projects
Poor planning and inadequate monitoring allegedly resulted in ₹41.80 crore being spent on incomplete works or unused assets.
These included an art and culture centre, biogas power plants, poultry units and mushroom production centres. Another ₹30.73 crore was spent on government-office construction, beautification and procurement outside the scheme’s priority areas. (The Indian Express)
Tender Rules and Staffing Concerns
Implementing agencies reportedly procured goods and services worth ₹17.49 crore through limited quotations instead of open tenders. Another ₹38.82 crore was spent without proper technical specifications.
The audit also highlighted severe staff shortages in several districts. Bemetara and Mahasamund had complete shortages in key posts, while vacancies exceeded 50% in Balod, Bilaspur, Raigarh and Rajnandgaon. (The Indian Express)
Transparency Gaps Flagged
According to the CAG, annual plans and approved budgets were not prepared in the test-checked districts before funds were spent.
Annual accounts and audit reports were also not properly submitted for presentation before the State Legislature. The audit recommended notifying affected villages, preparing long-term plans, conducting social audits and strengthening monitoring and coordination. (The Indian Express)
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