Bhubaneswar: The Odisha  Government has slaped a  fine of Rs 1,306.59 crore on the Mahanadi Coalfield Ltd (MCL) in Angul for illegal coal mining.

It said, MCL had resorted to illegal extraction of coal in the absence of statutory clearances and therefore, is liable to pay the penalty amount.

The Steel and Mines Secretary, the Director of Mines last week had sent a revised demand notice to MCL amounting to Rs 1,306.59 crore towards the dues assessed for realisation of the cost price of the coal mined illegally. The bill was prepared as per the observation of the Deputy Accountant General (R&A) Odisha.

The letter said MCL had resorted to illegal extraction of coal in the absence of environmental clearance (EC). Earlier, the Deputy Director of Mines, Sambalpur, had issued a demand notice to the MCL for Rs 862.58 crore. The revised bill was sent after the observation of the CAG regarding the short assessment of cost price towards realisation on illegal coal mining in the areas having no EC.

The bill was prepared as per the observation of the Deputy Accountant General (R&A), Odisha. The revised bill was sent after the observation of the Comptroller and Auditor General (CAG) regarding the short assessment of cost price of coal mined illegally in the areas not having environment license.

Meanwhile the state steel and mines minister Raghunath Mohanty has asked the Steel and Mines Department to take appropriate steps to check illegal extraction of coal by MCL, government sources said.