Centre to States: Step up spending, auditing of District Mineral Fund

Twesh Mishra New Delhi | Updated on January 18, 2019 Published on January 18, 2019

Under PMKKKY , 10-30% of royalty from minerals is earmarked for development activities in mining areas   -  THE HINDU

Only 24% of mop-up spent so far, says Mining Secretary

With just 24 per cent of the ₹23,606-crore mopped up under the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) actually spent, the Centre has advised States to increase the spending under the District Mining Fund (DMF) programme, while ensuring that there is no fund diversion or leakage.

PMKKKY is aimed at providing welfare to those affected by mining operations. Under the programme, a portion of revenues (10-30 per cent of the royalty proceeds from the minerals) is earmarked for development activities in mining regions.

Quality of expenditure

At a national workshop on PMKKKY here on Friday, officials from the Ministry of Mines asked the States to ensure that the rate of expenditure for development works improves while ensuring timely audit of the spending.

“Expenditure is going to improve and it has improved. In the last six to eight months, expenditure has improved substantially. But equally important is the quality of expenditure. A proper monitoring mechanism has been put in place and we have a portal wherein data is being fed on a continuous basis. On-time monitoring is taking place,” Mining Secretary Anil Gopishankar Mukim told BusinessLine.

Mukim was responding to a query on the pace and quantum of DMF fund utilisations.


State-wise collections

The States have raked in ₹23,606 crore under the DMF.

The top five States with maximum collection are Odisha (₹5,838.26 crore), Jharkhand (₹3,426.69 crore), Chhattisgarh (₹3,336.29 crore), Rajasthan (₹2,340.05 crore) and Telangana (₹2,028.87 crore).

“In proportion to the total funds that have been collected, around 80 per cent allocation has been made. The funds have been deployed in more than 1,00,000 projects. Quite a few of these projects have been completed also,” Mukim said.

“Looking at the number of projects which have to be approved and the number of projects which are currently under implementation, I think the progress is going to improve in the days to come,” he said.

Mukim said that State governments have been alerted about the expenditure and the need to ensure that it is monitored. “Once money of this magnitude has been spent, audit is a very important feature and all States have been informed that appointment of auditors and audit activities should also be expedited and completed in a time-bound manner,” he said.

Mukim said health and education are being given due priority in DMF expenditures. Skill development and drinking water are also areas receiving attention.

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Published on January 18, 2019
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