Mining companies ‘causing revenue loss’ to face stringent action: Odisha Minister

Odisha government is set to initiate legal proceedings against mining companies implicated in the underreporting of revenues due to illegal mining activities, Minister of Parliamentary Affairs, Mukesh Mahaling, informed the Legislative Assembly on Thursday on behalf of the Minister of Mines, affirming the State's commitment to addressing these allegations.

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Minister warns of strong action

According to Minister Mahaling, an investigation is underway targeting entities accused of misrepresenting the quality of high-grade iron ore as lower-grade major minerals, a practice that has purportedly led to significant revenue deficits.

The State's actions are grounded in the findings of Shah Commission, which underpins the legal cases amounting to a total of Rs 2,700 crore filed against 23 mining firms.

Minister Mahaling reiterated the State government’s resolve to reclaim the lost funds while responding to queries posed by legislator Upasana Mahapatra, who raised concerns about the State’s mining revenues.

The Minister provided an overview of Odisha’s mining revenue over recent years: Rs 13,981 crore for 2020-2021, Rs 49,859 crore for 2021-2022, Rs 38,075 crore for 2022-2023, Rs 46,396 crore for 2023-2024, and Rs 39,242 crore for 2024-2025.

“Certificate cases for around Rs 2,700 crore have been registered so far against 23 mining companies, based on Shah Commission report. The government is taking appropriate steps for recovery of the said amount,” Minister Mahaling said in the Assembly.

Main minerals illegally mined in Odisha

Odisha is rich in various minerals, making it susceptible to illegal mining. Commonly targeted minerals include coal, iron ore, bauxite, chromite, and manganese. For instance, illegal chromite mining has been a persistent issue in Sukinda, often linked to environmental damage and health risks. The involvement of organised crime syndicates exacerbates the problem.

Impact of illegal mining on environment

Illegal mining activities contribute significantly to deforestation, soil erosion, and water pollution. The use of hazardous chemicals like mercury and cyanide in illegal gold mining contaminates water bodies, posing severe threats to aquatic life and human health. Moreover, the clearance of forest land for mining operations disrupts ecosystems and biodiversity.

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Socio-economic consequences of illegal mining

Illegal mining leads to substantial revenue losses for the State, depriving it of funds for development projects. It also fuels corruption and undermines the rule of law. Local communities often suffer displacement, loss of livelihood, and health problems due to environmental degradation caused by excess/illegal mining activities.