BHUBANESWAR: In a move to plug revenue leakages and strengthen regulatory oversight in the mining sector, the state government has ordered a statewide crackdown on illegal mining, grade manipulation, underreporting of production and other mineral-related irregularities. The directive comes against the backdrop of observations by the Comptroller and Auditor General (CAG), which had flagged substantial revenue losses to the state due to alleged undervaluation and misclassification of minerals, particularly iron ore. Official estimates have indicated a potential loss of more than Rs 4,162.79 crore due to undervaluation of iron ore transported through key corridors such as Joda-Koida-Jajpur.
The Steel and Mines department has directed the directorate of Mines and Geology and its field functionaries to intensify inspections, surveillance and enforcement measures across mining leases, transportation networks, storage facilities and mineral trading points. “Strict vigil should be maintained against grade manipulation, dilution, blending, misclassification or misdeclaration of mineral grades intended to influence valuation, realisation of royalty as well as auction premium and other dues payable,” said additional chief secretary (Steel and Mines) DK Singh in an official communication to director of Mines and Geology Rohit Kumar Lenka.
Cautioning that illegal mining, suppression of production, grade manipulation and other irregularities not only result in significant revenue losses but also undermine mineral conservation and the integrity of the regulatory framework, Singh asked the director to intensify inspections and surveillance of mining operations, with particular focus on unauthorised excavation of minerals such as iron ore, manganese ore, coal, chromite and bauxite. The directive also called for strict monitoring of mining beyond approved lease boundaries, extraction in non-leased areas and production exceeding statutory permissions.
The field officials have been asked to closely monitor mineral grades and valuation practices. Officers have been instructed to verify production records, dispatch data and stock positions to identify discrepancies between actual and reported output. With illegal transportation of minerals emerging as another major area of concern, the department has ordered rigorous checks on permits, transit passes, weighment records and vehicle movements to curb unauthorised transportation, forged documentation and movement of minerals from unlawful sources. Warning officials against complacency, Singh said, “Responsibility will be fixed on the concerned officers. Exemplary disciplinary and departmental proceedings will be initiated against erring officials without exception.”
