CAG Report 2022: How Governance Gaps Cost Odisha ₹864 Crore in Mining Revenues
Key Points
Insights into Odisha’s mining inefficiencies and strategies for better governance.
Bhubaneswar, Apr 2: Odisha faced significant financial setbacks in its non-tax revenue sector from minor minerals during the fiscal year ending March 2022.
With only 28.27% of 520 identified minor mineral sources operational and the rest lying dormant, the state recorded a revenue loss of ₹20.10 crore. Irregularities in lease approvals, environmental clearance delays, and unregulated mining activities were major contributors to the revenue shortfall.
The Comptroller and Auditor General (CAG) of India highlighted operational inefficiencies in its 2022 report. The report noted unauthorized mining, over-extraction, and lapses in administrative oversight as factors resulting in an estimated ₹864.45 crore revenue gap.
Meanwhile, non-compliance with regulations led to illegal extractions totaling thousands of cubic meters of minor minerals, translating into uncollected royalty dues of ₹98.30 crore.
Furthermore, monitoring weaknesses, including the lack of satellite-based oversight, failed to prevent unlicensed mining activities, costing the state significantly in both finances and natural resources. The report also flagged delays in auction processes and inadequate environmental assessments as bottlenecks hindering the efficient operation of mineral sources.
The CAG recommends enhanced internal controls, stricter enforcement of existing policies, and leveraging modern technology such as satellite surveillance for effective governance in the mining sector.
Notable Data Mentioned In CAG Report
Revenue and Sources: From 2015-22, Odisha earned ₹2,968.75 crore in minor mineral revenue. Of the verified 520 minor mineral sources, only 28.27% were operational by March 31, 2022.
Operational Irregularities: ₹6.21 crore loss due to irregular bidder finalization; ₹20.10 crore revenue loss as mining operations lacked environmental clearances; ₹8.40 crore loss following revised rent and royalty rates.
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✨Uncollected Dues: Mining dues totalling ₹92.28 lakh (including interest) remained uncollected; Illegal mineral extraction without environmental clearance led to dues of ₹4.38 crore.
Illegal and Unauthorized Activities: Unauthorized mining on forest land caused ₹51.69 crore in non-recovery; ₹33.50 crore dues for illegal extraction of stone beyond approved plans.
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