Coal worth ₹975 crore produced in violation of environmental norms in Odisha: CAG | Bhubaneswar News


Coal worth ₹975 crore produced in violation of environmental norms in Odisha: CAG
CAG found irregularities in two coal mines operated by MCL

Bhubaneswar: Comptroller and Auditor General (CAG) has flagged alleged violations of environmental-clearance norms in Odisha’s coal sector, stating that more than 1.17 crore tonnes of coal were produced beyond permissible limits or without a valid environmental clearance, making the lessee liable to pay ₹975.57 crore.In its compliance audit report for the year ended March 2024, CAG found irregularities in two coal mines operated by Mahanadi Coalfields Limited (MCL). According to the audit, one mine exceeded the production limit permitted under its environmental clearance, while another continued production after the validity of its environmental clearance had expired.The larger violation was reported at Kalinga Open Cast Project under Talcher mining circle. The audit found that the mine’s environmental clearance expired in Oct 2021. Even after accounting for Covid-related extensions granted by Union environment ministry, the clearance remained valid only up to Oct 23, 2021. However, the mine continued coal production thereafter and extracted 1.15 crore tonnes of coal between Oct 2021 and March 2023 without a valid environmental clearance. The value of the coal produced during this period was assessed at ₹956.56 crore, the report stated.The audit observed that at Kulda Open Cast Project under Rourkela mining circle, the environmental clearance for coal production was enhanced from 19.6 million tonnes per annum to 21 million tonnes per annum in May 2022. However, based on the date of approval, the permissible production for 2022-23 worked out to 20.77 million tonnes on a pro-rata basis. Despite this, the mine produced 21 million tonnes, exceeding the permitted level by 2.3 lakh tonnes. CAG estimated the recoverable value of the excess production at ₹19.02 crore.Citing provisions of the Mines and Minerals (Development and Regulation) Act, 1957, CAG said the lessee was liable to pay the value of the mineral extracted without lawful authority. Together, the violations in the two mines involved 1,17,96,540 tonnes of coal, attracting a recoverable amount of ₹975.57 crore.The audit also criticised the mining authorities for not adequately verifying the validity of environmental clearances and production limits while assessing mining operations. In the case of Kalinga OCP, Deputy Director of Mines, Talcher, “did not check the validity of EC and lawfulness of the production from the mine”, the report noted.When the audit pointed out the irregularities, the concerned deputy directors of mines stated that compliance would be furnished after verification of records. Govt’s response was awaited at the time of finalisation of the audit report.



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