BHUBANESWAR: The Comptroller and Auditor General (CAG) has rapped the Odisha government for allowing strategic loot of minor minerals across multiple districts during 2015-22. Serious lapses in the management and regulation of the state’s mining sector led to unchecked illegal and mechanised extraction of minor minerals, financial irregularities, and violations of environmental norms, its latest report said.
The report flagged illegal sand mining in Brahmani and Rushikulya rivers, despite a state government ban. A sum of Rs 51.69 crore should have been recovered from lessees responsible for unauthorised extraction of 4.76 lakh cum of stone from forest land in violation of the Forest (conservation) Act but was not.
One of the major irregularities pointed out was the lack of penalty provisions for lessees who withdrew after being selected as the highest bidders only to allow the second-highest bidders. In many cases, the second-highest bidders happened to be relatives of the first bidders and obtained leases at significantly lower prices, causing a revenue loss of Rs 6.21 crore to the government. The audit found that leaseholders in 11 tehsils operated 52 minor mineral sources without obtaining consent to operate (CTO) from OSPCB and in the process, extracted 6.31 lakh cum of minor minerals worth Rs 17.95 crore illegally.
In certain cases, including the Gengutia Barada sand quarry in Dhenkanal district, mining continued even after the lease was cancelled in September 2021 due to default in dues of Rs 3.44 crore, exposing poor regulatory framework. In Rahadpur black stone quarry no.5; 99,638 cum of stone were illegally extracted, leading to non-realisation of mining dues of Rs 11.52 crore. A permit holder in Khaprakhol tehsil was found to have extracted 98,184 cum beyond the approved quantity amounting to loss of Rs 12.32 crore. A glaring case of non-compliance was observed in Dankari black stone quarry where authorities failed to reassess the excess extracted quantity as per the Orissa HC orders, leading to a non-recovery of Rs 58.63 crore in mineral revenue.
The CAG also slammed the government for its failure to measure quarries before and after operations, allowing illegal extractions to go undetected. No accountability was fixed on officials who failed to prevent the theft of road metal, leading to financial losses.
In Barloi stone quarry no.4, the authorities undercharged the lessee, resulting in a loss of Rs 4.13 crore and undue financial benefits to the company involved. The audit conducted across 22 tehsils in nine districts found delays in obtaining environmental clearance before inviting bids resulted in the expiration of lease periods, leaving quarries non-operational and leading to an additional revenue loss of Rs 20.1 crore.
Moreover, failure of five tehsildars to conduct timely auctions prevented the state from realising Rs 44.86 lakh in revenue. In Dharmasala block of Jajpur, failure in assessment of royalty, surface rent and additional charges at revised rates led to under-assessment and non-realisation of mining dues with interest amounting to Rs 8.4 crore.
Major theft
Illegal sand mining in Brahmani and Rushikulya rivers despite govt ban
4.76 lakh cum of stone extracted from forest land
Leaseholders operated 52 minor mineral sources without CTO