CAG Audit Exposes Lapses in Chhattisgarh Mining Fund

A recent Comptroller and Auditor General (CAG) audit of Chhattisgarh’s District Mineral Foundation Trust (DMFT) fund has exposed significant governance failures and deviations from the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY). The audit covers the 2015-16 to 2023-24 period, during which the state received ₹13,101 crore. Key issues identified include fund diversion, lack of transparency, tender violations, and unfruitful expenditure. Approximately 78% of the total funds were spent, yet many directly affected villages remain underserved.

The audit reveals that the state government expanded the definition of beneficiaries to include broad community groups, diluting the focus on mining-affected people. Trusts frequently spent funds on non-eligible items like office buildings, vehicles, and gardens, while failing to prepare necessary master plans or vision documents. Furthermore, the audit flags procedural violations, such as limited quotations replacing open tenders and high vacancy rates in essential project management roles, which hindered effective implementation.

The report underscores the need for structural reform in how mining welfare funds are managed. The CAG recommends notifying affected villages specifically, conducting mandatory social audits, and improving inter-departmental coordination to ensure transparency. Without immediate corrective action, the state risks continued misuse of public funds intended for sustainable livelihood projects in regions bearing the heavy burden of mining activities.