Odisha mining welfare fund irregularities

A performance audit by the Comptroller and Auditor General (CAG) revealed significant irregularities in the management of mining welfare funds in Odisha between 2015-16 and 2023-24. The audit found that funds from District Mineral Foundations (DMFs) and the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) were frequently misallocated. Specifically, in Kendujhar and Sundargarh, approximately Rs 983.32 crore was spent on 976 villages not affected by mining, while 488 directly affected villages received no projects.

The CAG report highlighted various instances of mismanagement, including the use of DMF funds for foreign education in Australia, textbooks, and medical coaching programs. It also noted that none of the six audited DMFs had prepared required master plans or endowment funds despite collecting Rs 22,568.17 crore.

Following these findings, the Odisha Pradesh Congress Committee demanded a white paper on the utilization of these funds. The party noted that while 30 DMFs collected ₹26,602.66 crore, only about 59.46% had been spent by March 2024. Further allegations included the diversion of ₹136.77 crore from the Sundargarh DMF for the construction of the Rourkela International Hockey Stadium, which was flagged as irregular under PMKKKY guidelines.