Most states failed to collect data on mining ops: Report

New Delhi, Oct 20: No states, barring Chhattisgarh and Odisha, have started the system of collecting data related to mining operations and failed to detect production loss and verify the mineral output claimed by miners, according to a report.
Besides, states like Gujarat, Kerala, Rajasthan, Uttar Pradesh and West Bengal could not furnish the extraction figures of major minerals, said the Natural Resource Accounting report.
The report prepared by the government accounting standards advisory board under the aegis of Comptroller and Auditor General of India further said that since states like Gujarat, Kerala, Meghalaya, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal could not provide the extraction figures of major minerals, their accounts had to be based on production figures only.
Further, Madhya Pradesh did not have extraction as well as production figures and accordingly their asset accounts were based on dispatch figures only. “Consequently, these states remained unaware about the production loss depicted and claimed by the lessees,” it said.
The royalty is collected on the minerals dispatched and therefore more the production loss, higher is the revenue leakage.
Moreover, cases of irregular claims of production loss also remained undetected on account of such system lacunae.
Only Chhattisgarh could provide the detailed position of extraction, production and dispatch of resources along with the production loss, which was within five per cent.
Most of the states have not prepared a comprehensive mineral map of the state.
States, it said, should be encouraged to prepare the mineral maps as it would be the first step towards effective management of mineral resources.
Besides, there are funds earmarked for this purpose under the National Mineral Exploration Trust (NMET) for carrying out the surveys.
There is no system for issuance of premits/transit passes for coal on advance payment of royalty, which is a pre-requisite as per the MMDR Act, 1957.
There is no control and monitoring of the mining officers on production and dispatch of coal from the mine head.
The lessees have their own system of issuing permits/passes and weigh-bridges for measurement, which has no involvement of mines department personnel, it said.
The department also do not have any weigh-bridges or check gate to monitor actual dispatch of coal.
Assessment of revenue is done solely on the basis of returns furnished by the lessees. “This system is highly susceptible to illegal mining, pilferage of minerals leading to windfall gains to the lessees and connected parties and commensurate loss to the state exchequer,” it said.
The state government may take suitable action to establish control and monitoring system and may also look into any case of pilferage of resources leading to revenue loss to the state exchequer. (PTI)