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CAG brings Odisha Over Rs 112 Crore Royalty Loss On Coal

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The Comptroller and Auditor General (CAG) of India’s report on Odisha’s revenue sector for assessment year have drawn up for non-inclusion of sizing charges in the Run-of-Mine price Coal, following in a short tax of the royalty of 112.26 crores.

According to the Mines and Minerals Development and Regulation Act, 1957 gives the holder of a mining lease which will pay royalty with any mineral transferred or utilized from a lease area with a particularized rate. The report deferred in the Odisha Assembly stated that in 2012 notification of the Ministry of Coal, the terms recommended that the royalty on Coal is leviable at the actual rate of around 14 percent ad-valorem on the price of Coal. This was also indicated in the invoice, which eliminated taxes or levies or any charges.

The notification depicted that the price of Coal according to the Coal India Limited of December 2013, if the top size of Coal is limited to 100 millimeters through standard facilities or mechanical means, sizing charge at the rate of Rs 79 per tonne shall be added to the price applicable for Run-of-Mine (ROM) coal. Even according to the Mining Concession Rules (MCR), 1960, in any case of processing of ROM minerals, which is brought out in the leased area, then charges will be penalized for the royalty on the processed mineral excavated from the leased site.

The CAG report stated that due to the not adhering to the designated guidelines and notifications during the royalty assessment year on Coal, the DDMs deprived the State treasury of royalty worth 112.36 crore. Even the dead rent of Rs 155.95 lakh by 65 lessees and Surface Rent of Rs 16.67 lakh by 14 lessees were neither paid nor directed by the Deputy Director of Mines. The CAG also further pointed that out of the salary component of 51.26 Lakh about the government staff posted in private weighbridges was not obtained by the Deputy Director of Mines and deposited in the government account.

Article Written by Dikhya Mohanty


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