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The CAG report released on Tuesday
Bhubaneswar: Several irregularities in the implementation of PM-POSHAN scheme in Odisha, including embezzlement of govt funds meant for providing nutritious meals to schoolchildren and serving anganwadi children rice unfit for human consumption, have been uncovered by the CAG.The audit, which covered both the integrated child development services (ICDS) and midday meal programme, was carried out between 2018-19 and 2022-23 in the districts of Rayagada, Balangir, Jharsuguda, Mayurbhanj, Ganjam and Puri.Under ICDS, morning snacks and hot cooked meals are provided to pre-schoolers (3-6 years of age), take-home ration to pregnant and nursing mothers, adolescent girls and children in the age group of 6 months to 3 years.The audit found that between 2018 and 2023, all 2.19 crore ICDS beneficiaries were reported as covered at an expenditure of Rs 4,777.12 crore against the required Rs 5,430.66 crore as per approved cost norms. However, in six districts, 1.98 lakh beneficiaries did not receive nutritional support.Substandard quality rice was fed to children at anganwadis in Jharsuguda. Inspection revealed that parboiled rice used for meals had been ruined by black bugs.
Rice samples of Mundadhipa anganwadi were found not fit for human consumption, and rice grains in Banjari anganwadi were found encrusted with live infestation and high moisture content.The CAG audit also flagged serious monitoring lapses in the implementation of midday meal (MDM) scheme. As per the central mandate of maintaining a single state nodal account (SNA) for MDM funds, the state nodal officer in 2021 directed all district project monitoring units (DPMUs) to close existing MDM accounts by Nov-end that year and transfer unspent funds to SNA.
But DPMUs continued to operate multiple accounts and parked an unspent balance of Rs 92.14 crore in them till May 2025.An inspection conducted in Dec 2023 at Ambadhuni and Denguni primary schools in Rayagada district found that no school infrastructure existed at either location. Despite this, headmasters of both schools reported MDM expenditure amounting to Rs 3.05 lakh and the utilisation of 55.94 quintals of rice for 248 students during 2018-23, without maintaining essential records such as cash books or MDM registers.

