A recent report by the Comptroller and Auditor General (CAG) has brought to light significant irregularities in the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in Jammu and Kashmir, raising concerns about the welfare of mining-affected communities. The CAG report, which covers the period ending in March 2023, reveals deviations from the established guidelines of the PMKKKY scheme, specifically highlighting the failure of the Jammu and Kashmir government to identify and notify areas and populations directly affected by mining activities.
The PMKKKY scheme, launched with the objective of ensuring the well-being of individuals and communities impacted by mining operations, appears to have been undermined by procedural lapses and discretionary practices. Information reaching TahirRihat.com suggests that the selection of projects under the PMKKKY scheme was carried out at the discretion of District Mineral Foundation Trusts (DMFTs), rather than being based on the actual needs of the mining-affected communities. This deviation from the scheme’s guidelines raises questions about the effectiveness of the PMKKKY in addressing the specific challenges faced by these vulnerable populations.
Further exacerbating the issue, the report cited a delay of two years in the formulation of the J&K District Mineral Foundation Rules, 2017, pertaining to minor minerals. These rules, when finally implemented, were found to be inconsistent with the Mines and Minerals (Development and Regulation) Act, 2015 (MMDR), necessitating subsequent amendments in February 2023 following audit observations made in May 2022. The contradictory nature of these rules resulted in a revenue loss of Rs 14.55 crore between 2017-18 and 2021-22, as reported by the CAG. Furthermore, delays in the registration and formation of District Mineral Foundation Trusts prevented the demand and collection of contributions amounting to Rs 8.82 crore.
The CAG report further highlights the absence of a robust mechanism for the assessment, demand, and collection of royalty, coupled with DMF contributions. The lack of a consolidated overview of the physical progress of sanctioned projects, including those ongoing, completed, and incomplete, at both the apex and divisional levels, underscores the need for improved monitoring and evaluation procedures. The report also reveals that a substantial number of sanctioned projects, specifically 147 out of 365 (40 percent) in eight sampled districts, were not initiated due to the absence of administrative approval and site-related disputes. Compounding these issues, the governing bodies and executive committees of the Trusts had not been properly constituted.
Adding to the concerns, the CAG observed that DMFT funds were advanced to various implementing agencies without the preparation of annual plans or budgets. Despite the availability of Rs 25.72 crore during the period from 2017-18 to 2022-23, only Rs 11.89 crore (46 percent) was utilized. Unspent balances were not invested, and Utilisation Certificates were neither received nor requested by some executing agencies in the Kashmir division. The report also points to the incomplete construction of 89 mineral check posts and the failure to install a mine surveillance system, despite incurring a liability of Rs 1.73 crore. These shortcomings have resulted in unchecked illegal mining, transportation, and storage of minerals.
A beneficiary survey conducted as part of the CAG’s investigation revealed a significant lack of awareness about the PMKKKY scheme and DMFT activities among the target population, with 96 percent of respondents unaware of the scheme and 100 percent unaware of DMFT activities. The report also uncovered violations of scheme guidelines mandating electronic payments. The CAG’s findings underscore the urgent need for corrective measures to ensure the effective implementation of the PMKKKY scheme and to safeguard the interests of mining-affected communities in Jammu and Kashmir.
Tahir Rihat (also known as Tahir Bilal) is an independent journalist, activist, and digital media professional from the Chenab Valley of Jammu and Kashmir, India. He is best known for his work as the Online Editor at The Chenab Times.