Bhubaneswar: State-run Odisha Mining Corporation (OMC) has paid one of its largest-ever financial penalties—₹4,364 crore—for illegal and excess mineral production, raising serious concerns over regulatory compliance in Odisha’s mining sector.
The penalties arise from violations of key environmental and forest laws, including the Environment Protection Act and the Forest Conservation Act, as well as breaches of approved production limits.
CAG Audit Flags Major Violations
A report by the Comptroller and Auditor General of India revealed that 14 out of 18 operational mines under OMC produced approximately 29.47 million tonnes of minerals between 2000 and 2011 either without necessary clearances or beyond permitted limits.
A significant portion of the penalty—₹1,666 crore—was attributed to excess chromite extraction from the Sukrangi and South Kaliapani mines. Delayed settlement of dues further escalated the financial burden due to accumulated interest.
Widespread Non-Compliance
The audit also identified violations in other mining locations, including:
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Daitari
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Gandhamardan
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Dubuna
These irregularities contributed to additional penalties, indicating systemic gaps in monitoring and enforcement mechanisms.
More Penalties Likely
The report further flagged fresh instances of non-compliance that could lead to additional penalties exceeding ₹1,300 crore, signaling ongoing regulatory challenges within the sector.
Concerns Over Oversight
The findings have raised questions about governance, compliance oversight, and environmental safeguards in Odisha’s mining operations. Experts say the scale of violations underscores the need for stricter monitoring, timely clearances, and accountability mechanisms to prevent recurrence.
-OdishaAge
