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

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

What the auditor found

• 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.

Also in the document

• CAG reported a revenue loss of ₹14.55 crore in the Mining Department due to rules that were not in consonance with the Mines and Minerals (Development and Regulation) Act 2015.
• CAG noted that 96% of respondents in a beneficiary survey were unaware of the PMKKKY scheme, and 100% were unaware of DMFT activities.
• CAG found that 89 Mineral Check Posts were not completed and the Mine Surveillance System was not installed, leaving illegal mining unmonitored despite a liability of ₹1.73 crore.
• CAG observed that hospital projects under the World Bank-aided JTFRP were executed in flood-prone areas, which is prohibited by the National Disaster Management Authority.