Jajpur: The state-owned Odisha Mining Corporation (OMC) has been allegedly caught on the wrong foot due to mining on forest land without permission. As a result, OMC has to pay a fine of Rs 47.12 crore.
The state government has even directed the OMC authorities to identify the officials involved in the wrongdoing and take necessary action against them. Reports, however, said that no step has yet been taken after the state government’s directive. This has also been mentioned in the 2024 report of the Comptroller and Auditor General (CAG).
According to the CAG report, the OMC had received the record of rights (RoR) on 345.189 hectare of forest land for the Khandabandh iron ore mines in Keonjahr district for a period of 30 years from November, 1963 to November, 1993 from the state government. Later, the RoR of the mines was extended till November, 2033 on the application of OMC in June 2018.
However, OMC is alleged to have violated Section 2(2) of Forest Rights Act, 1980. The OMC had applied for the conversion of the forest land for Khandabandha mines before the Divisional Forest Officer (DFO), Keonjhar in October 1995.
The matter was taken up for a decision when OMC violated the Forest Rights Act and took up 15.349 hectare of forest land for mineral extraction. On being informed, the Forest department sought clarification from OMC in 1997. Moreover, the Forest department asked OMC not to use any new jungle area for mining.
However, violating this order, OMC further took up mining on an additional 113.746 hectare of forest land. Later, the Keonjhar DFO issued a notice for closure of all mines on used and non-used forest land without the prior permission of the Union government on the basis of Forest Conservation Act in December, 2009.
As a result, all mining work had come to a halt since January 2010. Later, the Union government, while giving in-principle sanction for conversion of 345.189 hectare of forest land, also directed the state government to collect penalty from OMC for the violation in January 2019.
Accordingly, the state government demanded Rs47.12 crore from OMC on charge of illegal mining on 129.095 hectare of forest land in between 1994 to 2009. Subsequently, OMC deposited the penalty in September, 2019. Although the OMC authorities were fully aware of the illegal mining, they never realised that the penalty will be so taxing.
As per the CAG report, the illegal mining by OMC was deliberate and it never complied with the Union government’s order. Moreover, no official has been held accountable for the violation in norms. The CAG has warned the OMC authorities to ensure that illegal mining will not take place in future.
The state government has informed that all the mines managers and the regional managers working during the period have retired from their services and has asked the OMC to conduct a detailed probe.
PNN