CAG flags major irregularities in Odisha mining welfare funds

A performance audit by the Comptroller and Auditor General (CAG) has revealed significant irregularities in the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and the functioning of District Mineral Foundations (DMFs) in Odisha between 2015-16 and 2023-24.

The audit found that funds intended for mining-affected areas were frequently misallocated. In Kendujhar and Sundargarh, approximately Rs 983.32 crore was spent on 976 villages that were not affected by mining, while no projects were implemented in 488 directly affected villages. Additionally, the CAG noted that none of the six audited DMFs had prepared the required perspective or master plans, nor had they created endowment funds for sustainable livelihoods despite collecting Rs 22,568.17 crore.

Specific instances of mismanagement include the sanctioning of Rs 6.06 crore from DMF funds for the foreign education of five students in Australia, a move the CAG stated violated PMKKKY guidelines. The report also flagged Rs 14.83 crore spent on textbooks and uniforms, and Rs 4.30 crore on medical coaching programs where only six out of 437 students successfully passed entrance exams. Systemic shortcomings in monitoring and collection also resulted in an estimated loss of Rs 73.71 crore.