‘OMC liable to pay Rs 1,328 cr for excess mining’ | Bhubaneswar News

‘OMC liable to pay Rs 1,328 cr for excess mining’
The CAG report released on Tuesday

Bhubaneswar: State-owned Odisha Mining Corporation (OMC) is liable to pay Rs 1,328 crore in penalties for excess production in two of its mines, a CAG report has flagged.The report on state PSUs, tabled in the assembly on Tuesday, said in the Kodingamali bauxite mine, OMC produced 27 lakh MT of bauxite in 2018-19 against the approved consent to operate (CTO) limit of 22.6 lakh MT. This resulted in 4.4 lakh MT of excess production, attracting a penalty of Rs 1,298.39 crore.In the Sukrangi chromite mine, OMC produced 1.67 lakh MT of chromite against the approved environmental clearance (EC) capacity of 1.30 lakh MT during the same year. The excess 37,100 MT of production would entail an additional penalty of Rs 29.98 crore, the report stated.It may be mentioned that following a Supreme Court judgement in Aug 2017 on collection of fines for excess mining, OMC had paid Rs 4,364.15 crore in penalties for excess or unauthorised extraction of minerals — Rs 3,761.88 crore for violating environmental and forest clearances and Rs 602.27 crore for mining beyond the limits allowed under consent to operate and approved mining plans between 2017-2022.The CAG highlighted several operational lapses in OMC, which has 36 leases, of which 18 have remained inoperative for six to 35 years. Despite a turnover of Rs 23,630.79 crore, the CAG said inefficiencies, avoidable expenditure and weak oversight continue to erode OMC’s financial performance and recommended stronger compliance, planning, contract scrutiny and cost-control mechanisms.

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