Srinagar, Apr 16 — The Comptroller and Auditor General (CAG) has flagged major lapses in the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in Jammu and Kashmir, stating that authorities failed to identify or notify mining-affected areas and populations, undermining the scheme’s core objective.
“In contravention of PMKKKY guidelines, the areas and people affected due to mining were neither identified nor notified,” the CAG said in its report for the period ending March 2023, adding that project selection was carried out at the discretion of District Mineral Foundation Trusts (DMFTs) instead of being based on actual community needs.
The audit found that delays and inconsistencies in framing rules led to financial losses. The J&K District Mineral Foundation Rules, 2017 for minor minerals were framed with a two-year delay and were not aligned with the Mines and Minerals (Development and Regulation) Act, 2015. “Due to the framing of these contradictory rules, the department suffered a revenue loss of Rs 14.55 crore during 2017–18 to 2021–22,” the report said. It added that Rs 8.82 crore in contributions could not be demanded due to delays in constituting DMFTs.
The CAG also pointed to the absence of a system for assessment, demand and collection of royalty along with DMF contributions, and said consolidated data on project progress was not available at the apex or divisional levels.
Implementation gaps were evident on the ground, with 147 out of 365 sanctioned projects in eight sampled districts—about 40 per cent—not taken up due to lack of administrative approvals and site-related disputes. The governing bodies and executive committees of the Trusts had also not been constituted, the report noted.
Financial management remained weak, with only Rs 11.89 crore—46 per cent of the available Rs 25.72 crore between 2017–18 and 2022–23—utilised. Funds were advanced to implementing agencies without annual plans or budgets, while unspent balances were not invested.
The report further noted compliance issues, stating that utilisation certificates were neither received nor sought from some executing agencies in Kashmir division, and guidelines mandating electronic payments were violated.
Infrastructure gaps also persisted. “As 89 mineral check posts were not completed and the mine surveillance system was not installed despite incurring a liability of Rs 1.73 crore, illegal mining, transportation, and storage of minerals remained unchecked,” the CAG said.
A beneficiary survey conducted as part of the audit revealed limited public awareness, with 96 per cent of respondents unaware of the scheme and all respondents unaware of DMFT activities.