CAG pulls up Odisha for mining revenue losses of Rs 21,000 crore

Jul 29 2014, 01:26 IST
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SummaryThe Comptroller & Auditor General of India (CAG) has pulled up the Odisha government for mining revenue losses of R21,000 crore.

The Comptroller & Auditor General of India (CAG) has pulled up the Odisha government for mining revenue losses of R21,000 crore.

The CAG report on the revenue sector, which was tabled in the state assembly on Monday, said that the state had suffered revenue losses of R21,121 crore in five years between 2007 and 2012 due to failure in mining governance.

The CAG report has stated that between 2007-12, there was a non/short-levy, non/short-realisation of royalty, dead rent, surface rent with a revenue implication of R2,929.97 crore in 1,180 cases.

The audit report also found out from the records relating to mining receipts in case of 18 units that

there were 886 cases of non/short-demand of royalty, dead rent/surface rent, non/short recovery of interest and irregularities of miscellaneous nature involving R12,544.63 crore.

Further, the records relating to assessment and collecting of mining receipts in the offices of director of mines, deputy director of mines, and mining officers, where provisions of acts and rules were not adequately adhered to, suggest that R5,414.45 crore and R232.54 crore relating to other illustrative cases had been lost to the exchequer.

“It is a matter of concern that similar omissions have been pointed out repeatedly in the audit reports for the past several years , but the department has not taken any adequate corrective action,” CAG observed in its report.

The national auditor has suggested that the department needs to revamp its revenue recovery machinery to ensure recovery of non-realisation, undercharged of royalty/fees pointed out by audit, more so in those cases, where it has accepted audit contentions.

The state information and public relation minister, Atanu Sabyasachi Nayak, said the state government would implement all the suggestions and recommendations given by the CAG for the strengthening the mining administration.

Nayak said that the state government has taken up several initiatives to streamline the mining activities in the state.

The Integrated Mines, and Minerals Management System (i3MS), an IT initiative has been put in place to track the activities from raising of the minerals till its is disposed off or exported through ports.

The i3MS has integrated the revenue administrations networking the mining department with the commercial tax and transport departments, he explained.

Report states...

* The state suffered revenue losses of R21,121 crore between 2007 and 2012

* There was a non/short-levy, non/short-realisation of royalty, dead rent, surface rent with a revenue implication of R2,929.97 crore in 1,180

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