A mine in Orissa

Bhubaneswar, April 12: While the multi-crore mining scam has been rocking Orissa since the past two years, the comptroller and auditor general has detected under-assessment and under-realisation of mining revenue worth Rs 658 crore between the financial years 2004-05 and 2008-09.

The CAG, in its report for 2009-10, has detected that “non-levy or short-levy of royalty, dead rent, surface rent, interest etc” during the five years had resulted in revenue loss of Rs 658.83 crore. In all, 885 such cases were identified.

While deficiencies to the tune of Rs 58.54 crore in 2004-05 were detected by the CAG , shortcomings with revenue implications of Rs 116.84 crore for the next year were pointed out by the audit team. Short- or non-levy of Rs 55.08 crore, Rs 225.85 crore and Rs 202.52 crore were found during subsequent years.

Of the total deficient amount of Rs 658.83 crore found by the CAG, the state mines department had accepted audit observations in 264 cases involving Rs 78.80 crore and recovered only Rs 33.45 crore in 59 cases.

During 2009-10, the CAG audit team test checked the records of 20 units and found non-levy or short-levy of mining revenue and other irregularities involving Rs 269.95 crore in 356 cases. While non-levy or short-levy of royalty, dead rent or surface rent to the tune of Rs 242.50 crore was detected, various types of irregularities involving Rs 26.87 crore were found.

As such, the mines department officials had been accused of allowing illegal mining activities in Keonjhar, Mayurbhanj and Sundargarh districts, which resulted in loss of revenue to the tune of Rs 10,000 crore.

Following allegations from the Opposition, the state government had ordered a vigilance probe. Vigilance sleuths had arrested nine senior mines and forest department officials including the then mines director and a few mines operators. Not satisfied with the vigilance probe, the Opposition have been demanding a CBI inquiry into the mining scam. A PIL to this effect is pending in Orissa High Court.

Endowed with vast mineral deposits, Orissa occupies a prominent place in India’s mineral map. The state has 95 per cent of country’s chromite deposits, 92 per cent nickel ore, 55 per cent of bauxite and 33 per cent of iron ore.

Orissa ranks highest (13.10 per cent of all India total) in terms of value of mineral production, where as Bihar accounts for 0.02 per cent, Uttar Pradesh 0.91 per cent and Bengal 2.78 per cent of the country’s total mineral production. The mining sector contributes more than seven per cent towards Orissa’s real gross state domestic product. The share of mining sector has, however, been steadily declining: from 8.37 per cent in 2006-07 to 7.23 per cent in 2009-10.