BHUBANESWAR: The cabinet on Friday approved the enactment of Odisha Minerals (Prevention of Illegal Mining and Regulation of Trading, Transportation & Storage) Rules, 2025, to further strengthen legal framework to curb illegal mining in the state.
The new rules will replace the existing Odisha Minerals (Prevention of Theft, Smuggling and Illegal Mining and Regulation of Possession, Storage, Trading and Transportation) Rules, 2007, chief secretary Manoj Ahuja told mediapersons.
Ahuja said the amended rules seek to bring a more comprehensive legal framework to prevent illegal mining and regulate unlawful trading, storage and movement of minerals in the state aligning with the Mine and Mineral (Development and Regulation) Act, 1957 as amended till date.
The move to the repeal the existing OMPTS Rules, 2007 and frame a new one was necessitated following detection of mining revenue loss to the tune of `22,392 crore between 2015 and 2022 due to undervaluation of different grades of minerals, particularly iron ore.
In its performance audit report in 2024, the Comptroller and Auditor General (CAG) said the state incurred this staggering loss of revenue as mining leaseholders misreported the quality of ore while mining in excess of the approved plan in violation of all statutory rules and regulations.
Sources in the Steel and Mines department said the government had amended the OMPTS Rules in 2021 to make the method of stacking and sampling more scientific and accurate and exactly ascertain the quantity and grades of the minerals stored and despatched.
That apart, new provisions were introduced to facilitate use of drone technology for surveillance in the mining areas to curb illegal mining and transportation, theft and smuggling. As the existing rules were found to be wanting in many respects, the government decided to go for a overhaul to give more teeth to the regulatory mechanism, the sources added.
The chief secretary said the cabinet also approved another proposal of the department to introduce e-lottery for allotment of quarries of minor minerals like stones, sand on lease.
This new system will expedite the allotment and operationalisation of the minor mineral sources and mitigate the supply-demand gap with reasonable cost of minor minerals, he said. He also said that maximum rate capping provision for minor minerals has been made in the rule. From now on, one can obtain lease of maximum three minor mineral quarries in a district and five in the entire state.