Chief Minister Vishnu Deo Sai’s Panchayat Day Announcement Implemented; Funds to Boost Rural Infrastructure and Local Development
TFP Bureau, Raipur, May 27,2026: In a major move aimed at strengthening the three-tier Panchayat system, the Chhattisgarh Government has decided to allocate a share of the Minor Mineral Fund to District Panchayats for the first time. The order implementing the decision was issued by the Department of Mineral Resources following an announcement made earlier by Chief Minister Vishnu Deo Sai.
The decision comes after Raipur District Panchayat President Naveen Kumar Agarwal had urged the Chief Minister during a state-level National Panchayat Day programme to extend the benefits of the Minor Mineral Fund to District Panchayats as well. Accepting the demand from the dais, the Chief Minister had assured immediate action, which has now been formally implemented by the state government.
According to the new order, 33 per cent of the total royalty revenue generated from minor minerals will continue to be allocated to the Panchayat and Rural Development Department, as per the existing arrangement. The remaining 67 per cent will now be distributed among Gram Panchayats, Janpad Panchayats, and District Panchayats through a slab-based formula.
Under the revised system, funds up to ₹7.50 lakh will be allocated entirely to Gram Panchayats. For allocations between ₹7.50 lakh and ₹10 lakh, Gram Panchayats will receive 80 per cent, while Janpad Panchayats and District Panchayats will receive 10 per cent each.
For funds ranging between ₹10 lakh and ₹25 lakh, Gram Panchayats will receive 70 per cent, while Janpad and District Panchayats will receive 15 per cent each. In the ₹25 lakh to ₹50 lakh category, Gram Panchayats will get 60 per cent, while Janpad and District Panchayats will each receive 20 per cent. For allocations above ₹50 lakh, Gram Panchayats will receive 50 per cent, and Janpad and District Panchayats will get 25 per cent each.
The State Government has also broadened the scope of developmental works that can be undertaken using these funds. The amount can now be utilized for providing running water facilities in schools and hospitals, construction of community toilets and cremation grounds, development of approach roads, and establishment of reading rooms.
Officials said the funds allocated to District Panchayats would specifically be used for development works in mining-affected areas where local communities have faced adverse impacts due to extraction activities.
Chief Minister Vishnu Deo Sai said the government is committed to economically empowering Panchayats and accelerating development in rural areas. He stated that providing District Panchayats with a share in the Minor Mineral Fund would strengthen grassroots governance and make the three-tier Panchayat system more effective.
Following the issuance of the order, Panchayat representatives across the state welcomed the decision. Raipur District Panchayat President Naveen Kumar Agarwal described the move as a major boost for rural governance and said it would provide fresh momentum to development works and improve the administrative functioning of Panchayats in mining-affected regions.
