SHILLONG: The Divisional Mining Officer (DMO), Jowai failed to realize royalty to the tune of Rs 27.76 crore on coal from seven manufacturing units including five cement plants operating in Jaintia Hills.
As per the CAG report for the year ended 31 March 20014, the seven manufacturing units (M/s Meghalaya Power Ltd., M/s Green Valley Industries Limited, M/s Meghalaya Cement Company Limited, M/s Star Cement Limited, M/s Hills Cement Limited, Cement Manufacturing Company Limited and M/s JUD Cement) under the jurisdiction of DMO, Jowai procured 5.48 lakh metric tonnes of coal within the State between April 2012 and March 2013 on which royalty of Rs 31.60 crore was payable but only Rs 3.84 crore was deposited by these units.
“No action was taken by the DMO to realize the balance royalty from these manufacturing units thereby resulting in short-realization of royalty of Rs 27.76 crore,” the CAG report stated.
According to the report, Section 9 (2) of the Mines and Minerals (Development and Regulation) Act, 1957 lays down that every license or permit holder or lessee shall pay the prescribed royalty in respect of the mineral removed or consumed by him.
In Meghalaya, the royalty on coal was Rs 290 per metric tonne up to June 2012 and Rs 675 per metric tonne thereafter, the report stated.
Rs 16 lakh lost due to faulty collection: Meanwhile, the CAG report also revealed that as per the records of the Director of Mineral Resources (DMR), Williamnagar, between June 22, 2012 and June 23, 2012, the DMR staff at Dainadubi check gate detected excess load of 0.03 lakh MT of coal and realized additional royalty along with penalty of Rs 12 lakh on the excess load at Rs 2.90 per MT instead of Rs 29 lakh at the revised rate of Rs 675 per MT, thereby resulting in short collection of additional royalty and penalty of Rs 16 lakh.
“Despite the information available with the DMO, no action was taken to direct the check gate to realize royalty at the revised rate thereby resulting in loss of revenue to that extent,” the CAG report stated.
The case was reported to the Mining and Geology Department in February 2014. The reply was still awaited as on November 2014.
Conflicting records: The CAG report also revealed that the DMO Jowai records showed that between April 2012 and March 2013 mineral cess challans (MCC) were issued for extraction, consumption and export of 1.42 lakh MT of limestone and Rs 28 lakh was collected as cess.
“Further scrutiny of the report revealed that during the same period, 5.57 lakh MT of limestone was transported/exported through three check gates (Mookyndur, Umkiang and Dawki) under the jurisdiction of the DMO and cess of Rs 5 lakh on 0.26 lakh MT of excess limestone transported/exported was collected by two check gates (Mookyndur and Umkiang) resulting in non-collection of cess on 3.89 lakh MT of limestone valuing Rs 78 lakh. Besides, interest of Rs 12 lakh is also leviable,” the CAG report stated adding that the case was reported to the Mining and Geology department on February 2014 and the reply was still awaited as on November, 2014.