Comptroller and Auditor General of India criticised Odisha Government for its inability to frame a mineral policy of its own and pointed out large scale irregularities in the mineral sector.
“Audit scrutiny of records relating to formulation of State Mineral Policy revealed that a committee for formulation and finalisation of the said policy prepared draft State Mineral Policy in 2005 and was further modified in 2007 and 2010. Even after a lapse of seven years, the State Mineral Policy is yet to be finalised,” says CAG report which was tabled in State Assembly here on Monday.
In response to CAG report, the State said a high power committee had been formed in February 2011 to look into the matter.
“The fact remained that a State specific Mineral Policy could have further helped in framing a long term strategy for conservation and development of minerals and boosting investors’ confidence in mining sector,” CAG report points out.
According to the audit report, during the period from 2007-08 to 2011-12, 76 and 65 inspections were conducted in respect of working and non-working mines respectively against 536 and 237 number of inspections prescribed as per the norms in Joda circle.
“The percentage of annual inspection of working mines ranged between 11 per cent and 21 per cent whereas percentage of annual inspection of non-working mines ranged between 22 per cent and 32 per cent of the norms prescribed by DMO. Thus the frequency of inspection was inadequate. Three circles did not furnish information and three circles furnished incomplete information,” it adds.
“Non-inspections of mines could lead to illegal mining and unauthorised extraction or transportation of minerals, which would affect the State revenue adversely,” CAG points out.
CAG finds violation of Rule 37 of Mineral Concession Rules which says lessee cannot without the previous consent in writing of the State government, assign, sub-let, mortgage or in any other manner, transfer the mining lease, or any right, title or interest therein or enter into or make any bonafide arrangement.
According to report, audit scrutiny of 18 cases relating to transfer of mining leases registered in two registration offices, between 2003 and 2012 says eight lessees without previous consent of the State government made arrangements, by registration of documents titled as Partnership (one case) and General Power of Attorney (seven cases) for transfer of interest and operational rights in respect of seven MLs over 639.553 hectare with iron, manganese, lime stone and quartzite minerals, by which operation of their mines would be substantially controlled by a person other than the lessee.
“However, department did not have a mechanism in place to detect such cases. The registering authorities also did not ensure prior approval of government for registration of such deeds.
Thus, department failed to notice such irregular transfers of mining leases and take suitable action to comply with provisions of rules,” it says.
