Lagatar24 Desk
Ranchi: Jharkhand has suffered a financial loss of ₹60.85 crore due to errors in calculating reserve prices for coal and royalty on limestone, according to a recent audit report. The loss includes ₹60.30 crore from coal reserve price underestimations and ₹55.05 lakh from missed royalty collections on limestone dispatches.
Reserve Price Discrepancy Under CMSP Act
The audit, conducted by the Comptroller and Auditor General (CAG), pointed to non-compliance with the Coal Mines (Special Provisions) Act, 2015, and Standard Bidding Document (SBD) guidelines, which outline the formula for revising coal reserve prices. Two leaseholders operating under the jurisdiction of the Pakur District Mining Officer were found to have produced 296.52 lakh cubic feet of coal between 2019 and 2022, but paid only a fixed reserve price of ₹100 per ton, without applying the mandated revision formula. Based on SBD calculations, these lessees should have paid ₹356.83 crore, but only ₹296.52 crore was collected, causing a loss of ₹60.30 crore.
Systemic Failures and Royalty Miscalculation on Limestone
The audit blamed the absence of an automated reserve price verification system and the failure of the District Mining Officer to scrutinize monthly returns. Additionally, the report highlighted discrepancies in royalty collection from two limestone leaseholders in the Chaibasa region. Despite their lease renewals in October 2017 (extended until March 2030), additional royalty, mandated under the amended MMDR Act, 2021, was not levied. Between April and May 2021, 68.81 thousand MT of limestone was dispatched, but only the base royalty of ₹55.05 lakh was collected. This resulted in an equivalent loss due to non-collection of the additional royalty amount.
