BHUBANESWAR: The Comptroller and Auditor General (CAG) has asked the State government to fix responsibility on Joint Director of Mines, Joda circle for excess production of ore from Unchabali Iron and Manganese Ore Mines of Indrani Patnaik and non-realisation of cost amounting to Rs 456.46 crore.
After test check of records in 11 out of 14 mining circle offices for the year 2018-19, the audit detected excess production of 8,20,797 tonne of iron ore in violation of the mining plan approved by the Indian Bureau of Mines (IBM). The cost of the ore has been calculated taking into account the average sale price of iron ore of Rs 5,561.17 per tonne as published by IBM (from April 2018 to March 2019). The Joint Director of Mines (JDM) neither recovered the excess ore produced nor realised the cost price.
“Since such large amount of revenue has been overlooked, responsibility may be fixed for the unrealised amount and the lapse,” the audit report tabled on the last day of the winter session of the Assembly said.
As per the approved mining plan, the production limit of Run of Mines (RoM) was 37,99,923 tonne categorically bifurcating the production of ore at 29,66,333 tonne and mineral rejects at 8,33,590 tonne. However, as verified from the production details from monthly returns, the lessee produced iron ore of 37,87,130 MT showing nil quantity of rejects during the year 2018-19.
Comparing it with the corresponding figure in the approved mining plan, the audit observed that there was an excess production of 8,20,797 tonne (37,87,130 tonne-29,66,333 tonne) of iron ore. “As such, the excess production was unlawful for which the cost of such ore amounting to Rs 456.46 crore was to be realised from the lessee,” the CAG report on revenue sector for the year ended March 2020 said.
Further, sub-section (5) of section 21 of the MMDR Act, 1957 provides that whenever any person raises, without any lawful authority, any mineral from any land, the State government may recover the cost of the ore, rent, royalty or tax from the lease holder.
In a significant order in August 2017, the Supreme Court had directed the State government to recover 100 per cent compensation in lieu of excess ore lifted. In reply, JDM, Joda, stated that compliance would be sent after due verification and scrutiny of records. The matter was also intimated to the State government in June 2021 and the reply was awaited till September 2021.