Revenue from minor minerals dipped in Jharkhand: CAG

Ranchi, Dec 11 (PTI) Revenue receipts from minor minerals in Jharkhand declined consistently between 2017-18 and 2021-22 due to several factors, including short or non-levy of royalty, dead rent and penalties, according to the latest Comptroller and Auditor General (CAG) report tabled in the state assembly on Thursday.

According to the findings, revenue from minor minerals fell from Rs 1,082.44 crore in 2017-18 to Rs 697.73 crore in 2021-22.

The contribution of minor mineral receipts to the state’s total revenue also dropped sharply from 5.36 per cent to 2.23 per cent during the period, the report said.

State Finance Minister Radhakrishna Kishore tabled the report, which flagged irregularities in the grant and management of mining leases.

The performance audit on the management of minor minerals in the state was conducted during November 2022 to October 2023 to identify areas that require corrections and improvement in the management of minor minerals in the state, the report stated.

Apart from Jharkhand State Mineral Development Corporation Limited (JSMDC), six district mining offices were selected as part of the audit.

"A decline in revenue receipts from minor minerals, which dropped from Rs 1,082.44 crore in 2017-18 to Rs 697.73 crore in 2021-22, was witnessed. The share of minor mineral receipts in the state’s total revenue also saw a decline, falling from 5.36 per cent to 2.23 per cent during the period," the report said.

Although no reasons for this fall in revenue from minor minerals were provided by the department, the audit observed several instances of loss of revenue to the government exchequer due to reasons such as short/ non-levy of royalty, dead rent, penalty etc, it highlighted.

It also stated that Sahibganj deputy commissioner granted mining lease of 4.74 hectare beyond his jurisdiction, it stated.

"In another case, DMO (district mining officer), Sahibganj, not only entertained the application for mining lease over an area of 3.136 hectare, but also issued LoI (letter of intent) by arbitrarily reducing the area to 2.833 hectare without any request from the applicant," according to the report.

In district mining offices in Chatra and Palamu, eight leases of stone were granted on the land described as ‘Jungle Jhar’ (forest and shrub), which fell under the category of forest land, it said.

It further said the progress of auction of mineral blocks was very slow with only 3.77 per cent (11 out of 292 blocks) auction completed during 2018-23.

Leakages in revenue continued during the audit period, with short levy of royalty—including District Mineral Foundation Trust (DMFT) funds—amounting to Rs 7.53 crore in 30 cases between October 2019 and January 2022. Non-realisation of dead rent of Rs 2.33 crore in 15 cases between March 2016 and March 2022 was also observed.

"Twenty six leases between April 2014 and July 2023 in four districts extracted 33.21 lakh cubic meters of minor minerals beyond permissible limits. These leases were liable to pay penalty amounting to Rs 205.21 crore for unauthorised extraction of minerals but district mining offices of respective districts did not impose and collect the penalty," it added.

The state government also suffered potential losses of Rs 70.92 crore due to 368 non-operative sand ghats having an area of 9,782.55 acres during the audit period, the report said.

The report suggested implementing a system of online application of mining lease and putting in place a procedure for issuing or obtaining centralized royalty clearance certificate through Jharkhand Integrated Mines and Minerals Management System (JIMMS). PTI SAN SAN MNB