CAG uncovers major gaps in Odisha DMF fund usage for mining-affected regions

The Comptroller and Auditor General's audit, submitted to the Odisha Assembly, exposed significant irregularities in the District Mineral Foundation scheme across six districts. Errors in applying contribution rates, not revising payments after final royalty calculations, and omitting interest on late payments caused a notable shortfall in DMF receipts. Although the districts collected roughly ₹22,568 crore and sanctioned projects worth about ₹20,948 crore between 2015-16 and 2023-24, they lacked any perspective or master plans.

The audit revealed that large sums were spent on projects in non-affected villages, while no projects reached many directly or indirectly affected villages, and some expenditures exceeded the 40% limit for indirect areas. Additional issues included loss of interest due to unused flexi accounts, misuse of funds for MGNREGS wages contrary to guidelines, and payments for unauthorized constructions such as a hockey stadium and an overpayment to a private hospital.