CAG finds ₹14.55 crore revenue loss in Jammu and Kashmir Mining Department

This audit examined the compliance of four departments in the Union Territory of Jammu and Kashmir (Planning, Mining, Rural Development, and Transport) regarding specific government schemes and projects for the period ended March 2023.

Government of Union Territory of Jammu and Kashmir; specifically the Planning, Development and Monitoring Department, Mining Department, Rural Development Department, and Transport Department.

• Jhelum Tawi Flood Recovery Project (JTFRP): 174 of 213 sub-projects completed as of Dec 2023; damage assessment reports not prepared before commencement; hospital projects built in flood-prone areas despite prohibitions; irregular expenditure on dewatering stations.
• Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY): Revenue loss of ₹14.55 crore (2017-18 to 2021-22) due to contradictory rules; ₹8.82 crore in contributions not collected due to delayed formation of District Mineral Foundation Trusts (DMFTs); only ₹11.89 crore (46%) of ₹25.72 crore available funds utilized; 147 of 365 sanctioned projects (40%) not taken up.
• National Rural Livelihood Mission (NRLM): Coverage below targets; unreconciled unspent funds; irregularities in loan repayments; critical staff shortages; lack of grievance redressal mechanism.
• Transport Subsidy Scheme: Failure to phase out old vehicles; purchase of new vehicles in different owners' names; subsidy credited to savings accounts instead of loan accounts.
• Recommendations include ensuring projects follow the Project Appraisal Document, identifying mining-affected areas, establishing criteria for beneficiary identification, and strengthening fund management and monitoring mechanisms.

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