The Government of Chhattisgarh has granted District Panchayats a direct financial share of the royalty revenue generated from minor minerals. The decision fulfills a commitment made by Chief Minister Vishnu Deo Sai during a state level programme held on National Panchayat Day, where Raipur District Panchayat President Naveen Kumar Agarwal had requested the restructuring of the Minor Mineral Fund distribution to empower upper-tier panchayat bodies. According to the official order released by the Department of Mineral Resources, thirty-three per cent of the total revenue generated from minor mineral royalties will continue to be earmarked directly for the Department of Panchayat and Rural Development, matching previous administrative practices. The remaining sixty-seven per cent of the collection will be distributed dynamically among Gram Panchayats, Janpad Panchayats, and District Panchayats utilising a newly prescribed progressive slab system. The newly-established revenue-sharing breakdown operates on the following specific tiers based on collected collection amounts. For royalty collections up to 7.50 lakh rupees, the entire fund amount will be allocated directly to the local Gram Panchayat. For collection amounts between 7.50 lakh and 10 lakh rupees, the Gram Panchayat will receive eighty percent, while the Janpad Panchayat and the District Panchayat will each receive a ten percent share.

 

For collection amounts ranging between 10 lakh and 25 lakh rupees, the allocation shifts to seventy percent for the Gram Panchayat, with the Janpad and District Panchayats each receiving fifteen percent. For collection amounts between 25 lakh and 50 lakh rupees, the Gram Panchayat share is set at sixty percent, while the Janpad and District Panchayats will evenly split the remainder at twenty percent each. For all high-yielding collections exceeding 50 lakh rupees, fifty percent of the funds will go to the Gram Panchayat, while the Janpad and District Panchayats will each be granted twenty-five percent. Alongside the updated financial distribution mechanism, the State government has expanded the legal scope of how these mineral funds can be utilised on the ground. Local bodies are now authorised to deploy these resources for critical infrastructure projects, including installing running water facilities in public schools and healthcare centers, constructing community toilets, developing cremation grounds, building vital approach roads, and establishing community reading rooms. Crucially, the portion of funds allocated directly to the District Panchayats must be strictly utilised for targeted development works within specific localised areas that have faced adverse environmental or infrastructural impacts due to active mining operations.