Bhubaneswar, Oct. 5 (UDN): The Comptroller and Auditor General of India (CAG) has flagged mining-related irregularities amounting to ₹1,210.82 crore in Odisha, pointing to lapses in regulatory oversight, royalty collection, statutory clearances and recovery of government dues.
The audit has raised particular concerns over operations of Mahanadi Coalfields Ltd (MCL), including coal production beyond approved environmental clearance limits and short levy of mining-related dues.
MCL’s Coal Production Under Scanner
According to the audit findings cited in reports, MCL produced more than 1.17 crore tonnes of coal beyond or without valid environmental clearance, with the value of the excess production estimated at ₹975.57 crore.
At the Kalinga coal project, the audit observed that mining continued after the expiry of the extended environmental clearance on October 23, 2021. The production during the period up to March 31, 2023 was reported at 1,15,66,590 tonnes, valued at around ₹956.56 crore.
The CAG also flagged production at the Kulda mine, where output during 2022-23 reportedly exceeded the permitted pro-rata annual limit by about 0.23 million tonnes, resulting in an estimated liability of ₹19.02 crore.
₹92 Crore in Mining Dues Allegedly Under-Recovered
The audit further pointed to a short levy of ₹92.39 crore in mining-related dues across nine MCL mines.
The amount reportedly includes around ₹69.99 crore in royalty, ₹21 crore towards the District Mineral Foundation (DMF) and ₹1.40 crore towards the National Mineral Exploration Trust (NMET).
The short levy was attributed to the exclusion of mandatory sizing charges while calculating dues on more than 5.74 crore tonnes of dispatched coal.
The audit also flagged another ₹27.74 crore in additional dues that remained uncollected during extended lease periods involving two operational mining blocks in Jharsuguda.
Mining Without Valid Consent to Operate
The CAG also highlighted irregularities involving the Mahulsukha iron and manganese ore mine.
According to the findings, the new lessee reportedly extracted minerals valued at ₹45.59 crore over nearly 18 months without a valid Consent to Operate (CTO).
The observation has raised questions over the monitoring of statutory compliance by mining authorities and the effectiveness of enforcement mechanisms.
Weak Recovery Mechanism Also Flagged
The audit further pointed to shortcomings in the recovery of outstanding mining dues.
As many as 27 leaseholders reportedly delayed payments amounting to ₹1,452.55 crore, while authorities failed to impose penalty interest estimated at ₹69.53 crore, according to the audit findings.
The observations underline concerns over the state’s mechanisms for monitoring mining operations, calculating statutory dues and ensuring timely recovery of government revenue.
Audit Puts Mining Governance Under Spotlight
The CAG findings have brought renewed focus on regulatory oversight in Odisha’s mineral-rich regions. The observations cover issues ranging from environmental compliance and excess production to royalty assessment, statutory permissions and recovery of outstanding dues.
The audit has effectively highlighted the need for tighter monitoring and stronger enforcement to ensure that mining operations remain within approved limits and that the state receives all revenues legally due to it.