Jharkhand's Declining Mineral Revenue: CAG Report Unveils Systemic Irregularities

The Comptroller and Auditor General (CAG) report highlights a significant decline in Jharkhand's revenue from minor minerals between 2017 and 2022, caused by inefficiencies in royalty collection and mining lease management. Irregularities and uncollected penalties compounded the issue, prompting recommendations for system improvements.

A recent Comptroller and Auditor General (CAG) report laid bare the consistent decline in Jharkhand's revenue from minor minerals between 2017-18 and 2021-22. The state saw a decrease from Rs 1,082.44 crore to Rs 697.73 crore during the period, attributed to short or non-levy of royalty and penalties, as well as issues in mining lease management.

Revealed on Thursday in the state assembly, the report was presented by State Finance Minister Radhakrishna Kishore. It flagged critical irregularities that plagued the sector, including unauthorized granting of mining leases. Investigations showed notable administrative failures, such as inappropriate lease issuance beyond jurisdiction and misleading size reductions without formal requests.

The audit outlined systemic weaknesses, highlighting persistently uncollected royalties and dead rents, which cost the state significant revenue. In particular, the state lost potentially Rs 70.92 crore due to 368 non-operative sand ghats. To address these challenges, the report recommended implementing online mining applications and centralized royalty clearance through the Jharkhand Integrated Mines and Minerals Management System (JIMMS).

(With inputs from agencies.)