Naveen Govt Spent Rs 983 Cr DMF Fund In Non-Mining Villages: CAG

Bhubaneswar: Odisha’s previous government headed the Biju Janata Dal (BJD) president Naveen Patnaik government spent Rs 983.32 crore from District Mineral Foundation (DMF) funds on projects in 976 villages that were neither directly nor indirectly affected by mining, even as 584 mining-affected villages received no DMF-funded projects, the Comptroller and Auditor General of India (CAG) has found.

The findings are part of the CAG’s performance audit for the year ended March 2024 and were tabled in the Odisha Assembly on September 28, bringing the utilisation of the mining-linked development fund under renewed scrutiny.

The audit examined whether DMF funds were being utilised in accordance with the objectives of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY), under which mining-affected communities and areas are to be given priority.

The CAG flagged shortcomings in the selection, approval and execution of projects, besides pointing to expenditure outside the intended beneficiary areas. It also found instances of sanctioned projects remaining incomplete or failing to provide the intended benefits.

One such project is a 1,000-bed workers’ rest house at Koida in Sundargarh district, built with DMF funds at an estimated cost of around Rs 30 crore. Work on the project began in 2020 and was scheduled to be completed by 2022, but the facility has reportedly remained incomplete. Concerns have also been raised over cracks and soil subsidence at the site before its handover.

In Jajpur district, a Science Academy at Sathipur, for which Rs 113 crore was reportedly sanctioned from DMF funds, has also remained non-functional years after the project was taken up.

The project, entrusted to the National Buildings Construction Corporation (NBCC), was started during 2020-21. Questions have since been raised over the condition of the premises and the absence of a clear mechanism for its operation and maintenance.

“The investment of Rs 113 crore was made, but the State government did not pay much attention to it. As a result, the contractor and others looted it completely. If they hadn’t looted it, the project wouldn’t be in this incomplete state,” Sathipur resident Kartik Swain said.

Jajpur Collector Ambar Kumar Kar said the project lacked a clear provision for its future operation and maintenance.

“The problem is that we don’t have anything in the DPR regarding its future maintenance and operations. After creating such a massive asset, it should have been aligned with the administrative department,” Mr Kar said.

The audit also pointed to expenditure without proper approvals and questioned the manner in which projects were prioritised in areas not covered by the prescribed mining-impact criteria.