More embarrassment for Orissa government now. The Comptroller and Auditor General (CAG) of India has found unlawful extraction of iron ore, manganese ore as well as coal in excess of approved limit without prior environment clearance (EC) in the state.
The CAG findings come at a time when the Shah Commission is probing into mining irregularities in Orissa. The CAG report on revenue sector for the year ended march 2012 laid in the state legislature here on Monday said extraction of 290.99 MT of coal in violation of law led to “raising of demand of `1295.85 crores towards cost price thereof.”
Similarly, unlawful extraction of iron and manganese ores in excess of approved limit without prior EC led to non-realisation of `145 crores towards price of such materials.
The CAG report held that two lessees extracted 17.73 lakh MT of iron and 0.07 MT of manganese ore valued at `145 crores during the years 2004 to 2009-10 unlawfully and “hence the cost of mineral was to be recovered. The lessees are Joruri Iron and Manganese Mines of Tarini Minerals(P) Ltd over 66.368 hectares of land and BPJ Iron Ore Mines of the state owned Orissa Mining Corporation Ltd over 861.521 hectares of land were granted lease valid from February 6, 1990 to February 5, 2010 and from February 27, 1970 to February 26, 2000 respectively.
“Though the mining operation for one lessee was suspended since February 6, 2010 and the other since October 2009, no action was taken by the DDM [deputy director of mines], Joda to realise the cost price of the mineral unlawfully raised”, the report added.
Refuting the contention of the DDM that the EC was not required in cases other than renewal of mining lease, the report said, “The reply is not acceptable as the excess production over and above the production level of 1993-94 is treated as expansion in view of the clarification of GOI, MoEF in their notifications of October 2004 and EC from GOI, MOEF was necessary for such expansion”, it observed.
In yet another test check, the CAG team detected that the government of Indian owned MCL extracted 103.01 MT of coal from its Samaleswari Open Cast Project (SOCP) during 2004-05 and 2005-06 as against the approved extraction of 60 MTs leading to excess extraction of 43.01 MT of coal. “After we pointed out this out, the director of mines, Orissa intimated that the demand notice of `1295.85 crores was issued to the project officer, SOCP by DDM, Sambalpur on September 6, 2012”, it remarked stating that the reply from the state government has not been received till January last.