Mining Welfare Scheme Fails to Reach Affected Areas in Jammu Kashmir, Says CAG | Kashmir Life

SRINAGAR: The Comptroller and Auditor General (CAG) has flagged significant deficiencies in the implementation of the Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) in Jammu and Kashmir, noting that the scheme has largely failed to deliver intended benefits to mining-affected communities due to weak planning, poor targeting, and inadequate monitoring.

The findings are part of the CAG’s Report No. 7 of 2025, which examined the functioning of the mining department and the utilisation of District Mineral Foundation (DMF) funds under PMKKKY across selected districts.

The audit observed that, despite the scheme’s mandate to prioritise development in areas directly impacted by mining, several such locations saw no intervention at all. A beneficiary survey conducted across eight districts revealed that even within a two-kilometre radius of mining sites, no projects had been executed in multiple Gram Panchayats, effectively excluding the most affected populations from the scheme’s benefits.

The absence of targeted interventions is particularly significant in light of the environmental and social stress reported in these areas. According to the survey findings cited in the audit, all respondents reported damage to roads due to mining activities, while 99 per cent pointed to air pollution and 95 per cent to water pollution. Health-related concerns were reported by 82 per cent of respondents. Despite these widespread impacts, the audit found no commensurate response in terms of developmental works under the scheme.

The CAG further highlighted serious shortcomings in the planning process. Local governance institutions, which are expected to play a central role in identifying development priorities, were found to be largely excluded. All Sarpanchs surveyed during the audit stated that they had not been consulted in the identification or planning of works under PMKKKY.

This disconnect between planning and local needs was also reflected in the mismatch between community demands and actual project execution. While residents identified skill development, road connectivity, healthcare, water supply, and education infrastructure as priority areas, these needs were not adequately addressed in the projects taken up under the scheme.

PMKKKY is a centrally sponsored initiative aimed at mitigating the adverse impacts of mining by channeling funds collected through District Mineral Foundations into welfare and infrastructure projects in affected regions. In Jammu and Kashmir, DMFTs at the district level are responsible for identifying affected areas, preparing annual plans, and executing projects.

However, the audit noted that this institutional mechanism did not function effectively. It pointed to deficiencies in project planning and approval processes, weak monitoring frameworks, and gaps in fund management. The report also underlined the need for stronger enforcement measures to curb illegal mining and ensure that funds are utilised in a targeted and transparent manner.

The CAG’s assessment indicates that while the scheme is designed as a focused intervention for mining-affected communities, its implementation in Jammu and Kashmir has not been aligned with its core objectives. The lack of participatory planning, inadequate targeting of affected areas, and weak oversight mechanisms have limited its impact on the ground.

The report suggests that improving community participation, aligning projects with local needs, and strengthening monitoring systems will be critical to ensuring that the scheme delivers meaningful outcomes in the future.