Following the amendment of the Mines and Minerals (Development and Regulation) Act in 2015, the DMF was set up in all 30 districts in Odisha with contribution from mining lease holders. The objective was to ensure welfare of areas and people affected by mining related operations. The amount was spent as per the guidelines of Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY).

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As per official records, an amount of Rs 26,602 crore was received by the 30 districts towards DMF contribution from the mining leaseholders during 2015-16 to 2023-24. Of this, Rs 25,969.87 crore was sanctioned for implementation of projects.

As per the CAG report, out of total administrative expenditure of Rs 99.81 crore in DMF, Sundergarh, Rs 25 crore was irregularly utilised for purposes other than administrative expenditure, like engagement of vehicle for police patrolling, renovation of municipality office, renovation of reading room at Collector’s residence, inauguration charges, and organising school function.

Also, Rs 2.65 crore was irregularly paid out by the DMF, Sundergarh, towards Covid incentives to 62 doctors and other regular/outsourced medical staff besides a Covid Hospital instead of expenditure being made out of the chief minister’s relief fund, read the report.

Amount re-deposited without interest

In Jajpur district, the authorities “irregularly spent” Rs 16.56 lakh from DMF fund for procurement of a vehicle while Rs 4.63 crore was released from Sundargarh towards Rourkela SP for procurement of 25 patrolling vehicles. The amount was re-deposited without interest of Rs 22.53 lakh, noted the audit report.

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For construction of a stadium in Rourkela, billed as the world’s largest fully seated field hockey stadium with over 20,000 seating capacity, which co-hosted the 2023 Men’s FIH Hockey World Cup, an amount of Rs 136.77 crore was sanctioned by DMF, Sundargarh.

“Construction of an international hockey stadium out of DMF funds does not come under any activity of PMKKKY since it is mostly used for national and international level matches and is of very limited/ no use to people directly or indirectly affected by mining activities in the district,” said the CAG report.

The report said incurring expenditure for construction of the international hockey stadium out of DMF funds was irregular and defeated the very purpose of the collection of funds for the welfare of the affected people in the mining affected areas.

During Covid, PPE kits were supplied to 44,120 workers/labourers engaged in mines and industries owned by private/PSU organisations in Sundargarh with an expenditure of Rs 59.13 crore.

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The report also found that an expenditure of Rs 1.02 crore was irregularly incurred by authorities in Sundargarh on spendings like hiring charges of vehicles, supervision charges, tent house charges, supply of fuel charges to the Tribal Development Co-operative Corporation of Odisha Ltd (TDCCOL) as well as deposit of CGST, SGST and IT on previous bills for plantation scheme.

The report has given a chance to the ruling BJP to attack its predecessor, the Biju Janata Dal (BJD) that has been targeting it over the new mines law.

“The CAG report has exposed the real record of the Naveen Patnaik-led BJD government on mining and the welfare of mining-affected people. The irony is that BJD is today protesting over mining revenue, while its own tenure witnessed serious irregularities in the utilisation of DMF funds. This is a betrayal of tribal and mining-affected people. Naveen Patnaik and the BJD must explain every rupee and fix responsibility,” Bharatiya Janata Party (BJP) spokesperson Anil Biswal told .

When contacted, BJD leaders said they will respond after going through the CAG report.