The Comptroller and Auditor General of India have detected excess iron ore excavation and has recommended the Odisha government realization of Rs 4,56.46 crore from lessees towards the cost of iron ores excavated beyond the State’s mining plan.

The CAG’s findings till March 2020 was tabled on Friday in the State Assembly with the premiere audit squad finding excess iron ore excavation of 8,20,797 metric tons.

The sub-section (5) of Section 21 of the Mines and Mineral (Development and Regulation) Act, 1957 provides that whenever any person raises, without any lawful authority, any mineral from any land, the State government may recover from such a person the minerals so raised.

The audit test checked the assessment records for the year 2018-19, production and dispatch statements and monthly returns along with the approved mining plan/ scheme in 11 out of 14 Mining Circle Offices. Audit observed that the Indian Bureau of Mines (IBM) approved (16 November 2017) the mining plan in respect of one mining lease holder90 under Joint Director of Mines, Joda circle, the audit report stated.

As per the approved mining plan, the production limit of Run of Mines (ROM) was 37,99,923 Metric Ton (MT) categorically bifurcating the production of ore at 29,66,333 MT and mineral rejects at 8,33,590 MT. However, as verified from the production details from monthly returns, the lessee produced iron ore of 37,87,130 MT and 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 MT (37,87,130 MT less – 29,66,333 MT) 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 cost has been calculated taking into account the average sale price of iron ore of Rs 5,561.17 per MT as published by IBM (from April 2018 to March 2019) as per the provision of the Act, the report maintained.

The Joint Director of Mines (JDM) neither recovered the excess ore produced nor realised the cost price. Since such a large amount of revenue has been overlooked; responsibility may be fixed for the unrealised amount and the lapse, the CAG pointed out.

“In reply JDM, Joda stated that compliance would be sent after due verification and scrutiny of records. The matter was also intimated to the Government of Odisha during June 2021. Their reply is awaited (September 2021)”, the CAG noted.