The Comptroller and Auditor General (CAG) of India has detected ₹1,210.82 crore in mining irregularities across Odisha's coal sector, highlighting significant lapses in environmental compliance and revenue collection. According to the latest audit findings, more than 1.18 crore tonnes of coal were produced beyond environmental clearance limits and without valid clearances, with the lessee liable to pay ₹975.57 crore for the mineral's value. The violations were primarily detected at Mahanadi Coalfields Ltd's (MCL) Kalinga opencast project in Talcher, where coal extraction continued without valid environmental clearance from October 24, 2021 onwards. The CAG found that 1,15,66,590 tonnes of coal were extracted during this period, valued at ₹956.56 crore, as the original environmental clearance had expired after 30 years on October 23, 2020, and the state government failed to verify the EC's validity during assessments.
The audit revealed that MCL's Kulda opencast project exceeded approved production limits during the 2022-23 financial year. According to the CAG findings, the production limit under the EC was enhanced from 19.6 mtpa to 21 mtpa on May 24, 2022, making the annual production permissible on a pro-rata basis 20.77 million tonnes. However, the mine produced 21 million tonnes during 2022-23, exceeding the approved limit by 0.23 million tonnes, with the excess production valued at ₹19.02 crore. Additionally, the state government short-levied ₹92.39 crore in royalty and mining dues across nine MCL coal mines due to inadequate sizing charges inclusion. The CAG estimated that 5,74,61,682 tonnes of sized coal were dispatched between April 2020 and September 2021, with applicable sizing charges of ₹87 per tonne not included in run-of-mine coal pricing, resulting in short levies of ₹69.99 crore in royalty, ₹21 crore towards DMF and ₹1.4 crore towards NMET.
The Comptroller and Auditor General (CAG) of India has flagged large-scale non-utilisation and unauthorised use of land allotted for industrial and allied activities across Odisha. According to the performance audit, 12,393.651 acres of land allotted between 1981 and 2021 for establishing industries and allied activities remained unutilised for the intended purposes, while another 252.692 acres were used for purposes other than those for which they had been sanctioned. The audit covered eight districts and revealed that the Odisha Industrial Infrastructure Development Corporation (Idco) had allotted a total of 50,231.849 acres for industrial land establishment as of March 2024. However, the absence of effective monitoring and enabling provisions in lease deeds made it difficult for the authorities to enforce utilisation of allotted land within the stipulated period or resume land that remained unused.
The audit highlighted significant gaps in government land management, with 668.893 acres of government land valued at ₹597.87 crore remaining under unauthorised occupation in sampled areas. As reported by the CAG, village-wise land banks mandated under Rule 42 of the Odisha RFCTLARR Rules, 2016, had not been formed despite provisions intended to ensure productive use of government land. The Revenue and Disaster Management (RDM) Department was found to not maintain a database of acquired or allotted land, while neither Idco nor district collectors had taken steps to survey and ascertain the utilisation status of allotted land. The CAG noted that "in the absence of such land banks, 668.893 acres of government land, valued at ₹597.87 crore, remained under unauthorised occupation in the sampled areas. Such land could otherwise have formed part of the land bank for productive utilization."
The CAG identified several enforcement gaps that contributed to the widespread non-utilisation issues across both industrial and mining sectors. According to the audit, the Odisha Government Land Settlement (OGLS) Act and Rules, 1983, and the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013, provide for utilisation of leased or acquired land within prescribed periods of three and five years respectively. However, lease deeds executed between district collectors and allottees did not stipulate specific periods for land utilisation, weakening enforcement mechanisms. The CAG recommended that the RDM Department ensure allotted land is utilised for intended purposes within prescribed periods and initiate steps for resumption of unused land, while forming village-wise land banks and implementing robust mechanisms to prevent unauthorised agricultural land conversion. The department has been advised to "take effective steps to ensure that allotted land is utilised for the intended purposes within the prescribed period. Where land is not utilised within the stipulated period, the government should initiate steps for its resumption."
