District Panchayats to Also Receive Share of Minor Mineral Fund; Government Implements CM Sai’s Announcement

Raipur, May 2026: In a major step aimed at strengthening the three-tier Panchayati Raj system, the Chhattisgarh government has issued an order to include district panchayats in the distribution of royalty revenue from minor minerals.

During the state-level event on National Panchayat Day, District Panchayat President, Raipur, Shri Naveen Kumar Agrawal had demanded that district panchayats be given a share in the minor mineral fund. Chief Minister Vishnu Dev Sai accepted the demand on the spot and made an announcement, which has now been formally implemented by the state government.

According to the order issued by the Department of Mineral Resources, 33 percent of the total revenue generated from minor minerals will continue to be allocated to the Panchayat and Rural Development Department as before. The remaining 67 percent will now be distributed among gram panchayats, janpad panchayats, and district panchayats based on a fixed slab system.

As per the new guidelines, funds up to ₹7.50 lakh will be fully allocated to gram panchayats. For amounts between ₹7.50 lakh and ₹10 lakh, the distribution will be 80 percent to gram panchayats, and 10 percent each to janpad and district panchayats.

For funds ranging from ₹10 lakh to ₹25 lakh, gram panchayats will receive 70 percent, while janpad and district panchayats will receive 15 percent each. For the ₹25 lakh to ₹50 lakh category, gram panchayats will get 60 percent, and both janpad and district panchayats will receive 20 percent each. For amounts exceeding ₹50 lakh, gram panchayats will receive 50 percent, while janpad and district panchayats will get 25 percent each.

The state government has also expanded the scope of fund utilization. The funds can now be used for providing running water facilities in schools and hospitals, constructing community toilets, cremation grounds, access roads, and libraries. The share allocated to district panchayats will be used for development works in areas adversely affected by mining activities.

Chief Minister Vishnu Dev Sai said that the government is continuously working to economically empower panchayats and accelerate development in rural areas. He stated that the inclusion of district panchayats in the mineral fund distribution will strengthen local development planning and make the three-tier panchayat system more effective.

Welcoming the implementation of the announcement, District Panchayat President Naveen Kumar Agrawal and other representatives expressed satisfaction, stating that the decision will strengthen the functioning and administrative capacity of panchayats and further accelerate rural development initiatives.

Team Maverick.