CAG uncovers over ₹1,210 crore mining violations in Odisha amid MMDR reforms

The Comptroller and Auditor General’s audit of Odisha’s mining sector revealed irregularities amounting to ₹1,210.82 crore. Mahanadi Coalfields Ltd produced over 1.17 crore tonnes of coal beyond the limits set by environmental clearances and after the clearances lapsed, creating a revenue gap of ₹975.57 crore. The audit also found that nine coal mines were short-levied on royalty, District Mineral Foundation and National Mineral Exploration Trust contributions by ₹92.39 crore because sizing charges were omitted.

Additional royalties of ₹27.74 crore were not collected on two coal blocks whose leases were extended for 20 years. A separate case involved the Mahulsukha iron and manganese mine operating for about 18 months without a valid consent to operate, costing the state ₹45.59 crore. The CAG criticized the state’s mining authorities for inadequate assessment, monitoring, and interest collection on delayed payments, pointing to systemic revenue losses.