CAG Exposes Odisha DMF Fund Misuse: Ineligible Projects Funded by Mining Money

The Comptroller and Auditor General (CAG) has uncovered significant irregularities in the utilization of District Mineral Foundation (DMF) funds in Odisha, revealing that numerous projects executed under the scheme were inadmissible according to state rules. The audit, detailed in a report released this week, highlights that while indirectly mining-affected individuals received substantial benefits, the funds were diverted to projects that did not meet the criteria set forth by the Odisha DMF guidelines.

According to the CAG report, several projects funded by the DMF were outside the permissible scope, raising questions about the oversight and approval processes. The DMF was established under the Mines and Minerals (Development and Regulation) Amendment Act, 2015, to ensure that mining-affected communities benefit from mineral extraction. In Odisha, the fund has accumulated thousands of crores, but the audit suggests a lack of adherence to regulatory frameworks. Official sources indicate that the state government has not yet responded to the findings, but the report has prompted calls for greater transparency.

The implications of this audit are far-reaching, as it underscores potential mismanagement in a critical welfare mechanism. Mining-affected communities and activists have demanded a thorough investigation and corrective measures to prevent future misuse. The CAG's findings may also prompt similar audits in other mining states, potentially leading to nationwide reforms in DMF fund management. The next steps involve the state government's response and possible legislative action to tighten regulations.