Raipur: The Chhattisgarh government has announced a major policy decision to financially strengthen the three-tier Panchayat system by allocating a share of minor mineral royalty revenue to district panchayats.
The state’s Mineral Resources Department has issued an official order implementing the new revenue-sharing mechanism.
CM Vishnu Deo Sai’s Announcement Leads to Policy Change
The decision follows an announcement made by Chief Minister Vishnu Deo Sai during the National Panchayat Day programme. The demand for district panchayats to receive a share from the Minor Mineral Fund was raised by Raipur District Panchayat President Naveen Kumar Agarwal during the event.
New Revenue Sharing Formula Explained
Under the revised system:
- 33% of the total revenue generated from minor minerals will remain with the Panchayat and Rural Development Department
- The remaining 67% will be distributed among:
- Gram Panchayats
- Janpad Panchayats
- District Panchayats
The distribution will be carried out according to the prescribed government ratio.
Distribution Structure Based on Fund Size
The state government has also defined a structured allocation model based on the total amount collected:
Funds up to ₹7.50 Lakh
- Entire amount will go to the Gram Panchayat
Funds Above ₹7.50 Lakh
- Janpad Panchayats and District Panchayats will also receive shares
Funds Above ₹50 Lakh
- Gram Panchayat: 50%
- Janpad Panchayat: 25%
- District Panchayat: 25%
Officials said the move will ensure balanced financial empowerment across all levels of Panchayati Raj institutions.
Funds to Be Used for Rural Development Projects
The scope of utilisation of the Minor Mineral Fund has also been expanded.
The allocated amount can now be used for key rural development works, including:
- Water facilities in schools and hospitals
- Community toilets
- Crematorium infrastructure
- Rural access roads
- Reading rooms and public utility facilities
District Panchayats in mining-affected areas will also be allowed to use these funds for region-specific development projects.
Government Focused on Financial Empowerment of Panchayats
Chief Minister Vishnu Deo Sai said strengthening Panchayats financially remains a priority for the state government.
According to the Chief Minister, the decision will:
- Accelerate village-level development
- Improve rural infrastructure
- Enhance local governance
- Empower Panchayati Raj institutions financially
Major Boost for Rural Governance in Chhattisgarh
The new policy is expected to provide stronger financial support to local self-governance bodies and improve development planning in rural and mining-affected regions of Chhattisgarh.
Officials believe the initiative will help decentralise development funding and increase grassroots participation in local infrastructure projects.
