CAG flags misuse of Chhattisgarh's District Mineral Foundation (PMKKKY) funds

📌 Summary:

• A Comptroller and Auditor General (CAG) audit exposed systemic lapses in implementing the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in Chhattisgarh — governance failures, policy deviations, fund diversion, tender violations, unfruitful spending and transparency gaps
• Scope: the state's Rs 13,101-crore District Mineral Foundation Trust (DMFT) fund over 2015-16 to 2023-24; DMFTs received Rs 13,101 crore, of which Rs 10,253 crore (78%) was spent
• Launched in 2015, PMKKKY funds development for mining-affected areas/people via DMFTs, financed by contributions from mining and quarry leaseholders
• Key lapses: (1) CGDMFT Rules, 2015 were diluted — "Affected People" was expanded to all people living/working in affected areas, spreading benefits thin; Rs 709.47 crore went to distributing free items, with a sample of Rs 28.11 crore given without defined criteria or identified beneficiaries (2) Coverage gap: despite spending Rs 4,536.58 crore (81% of available funds), 754 of 1,734 (44%) directly affected villages remained uncovered in 11 sampled districts (3) Fund diversion: money spent on non-eligible works (welcome gates, gardens in collectorates, government office buildings, vehicles, grants to private educational institutions) (4) Poor planning: no master plans/vision/annual plans; affected areas identified with delays of 5 months to 5 years; Rs 1,060.70 crore allocated before areas were even identified; Rs 41.80 crore unfruitful expenditure on incomplete works/idle assets (5) Procurement violations: Rs 17.49 crore via limited quotations without open tenders and Rs 38.82 crore without technical specifications, breaching Chhattisgarh Store Purchase Rules, 2002

🎯 UPSC Relevance: GS2 — CAG oversight, scheme implementation gaps, transparency and accountability in welfare fund utilisation; mining-affected community welfare.

📝 Prelims Facts:

• PMKKKY launched in 2015; implemented through District Mineral Foundation (DMF) Trusts under the MMDR Act
• DMF funded by contributions from mining/quarry leaseholders
• Chhattisgarh DMFT fund audited: Rs 13,101 crore (2015-16 to 2023-24)

🔑 Key Term: District Mineral Foundation (DMF) — a non-profit statutory trust in mining districts (under the MMDR Act) funded by miner contributions, meant to benefit people and areas affected by mining, with PMKKKY guiding its spending.