Bhubaneswar: The Odisha Mining Corporation Limited (OMC) lost a chance to earn revenue of Rs 1,838.98 crore due to shortfall in production of 114.44 lakh metric tonne of iron ore and 2.70 lakh metric tonne of chrome ore during 2012-17.
As per the Comptroller and Auditor General (CAG) report tabled by Finance Minister Sashi Bhusan Behera in the Odisha Assembly today, OMC had to bear an expenditure of Rs 57.26 crore as rent and watch ward expenses since 26 out of the 34 mining leases granted to it remained inoperative for a period ranging from seven to 37 years.
Avoidable expenditure of Rs 138.63 crore was also incurred by OMC for non-segregation of natural iron ore fines from the crushed iron ore fines. It was also not able to recover the royalty of Rs 37.28 crore on sale of ore to buyers due to absence of suitable provision in the sales contract, the report highlighted.
The OMC was further not able to earn profit of Rs 1,189.97 crore from two out of three projects as it failed to install iron ore handling plant, ensure infrastructure facilities and a mechanical evacuation system in its three major operating mines, the report stated.
"Let it be about OMC or any other government undertaking, it is only an audit report that needs review. It will be scrutinised by the Assembly Committee. Arriving on a conclusion now based on the report is inappropriate and the truth will come out after scrutiny," said government chief whip Amar Prasad Satpathy.
The CAG report also revealed irregularities in payment of Rs 3,114 crore wages to people working under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Similarly, out of the Rs 53.19 crore unemployment allowance under the rural job guarantee scheme, only Rs 15 lakh has been paid, the report mentioned.
Moreover, the CAG also pointed that unauthorised construction by Odisha State Police Housing & Welfare Corporation Limited (OPHWC) by deviating from the approved plan resulted in additional liability of Rs 1.94 crore.