‘Mining contractors caused ₹1,500-crore loss in 2017-18’

CHANDIGARH : Haryana government suffered losses to the tune of Rs 1,476 crore due to numerous administrative lapses by the mines and geology department in 2017-18, according to the Comptroller and Auditor General (CAG) of India.

In its performance audit about the functioning of mines and geology department, the CAG has come across cases of either delayed or non-execution of agreements by the contractors and delayed/non-deposit of balance bid security.

“Delays in renewal of licences to operate stone crushers, cases of short/non-recovery of royalty… resulted in loss of Rs 1,476 crore,” the CAG report that was tabled on the floor of Haryana assembly on Tuesday says.

Due to obstruction in river flow by sand miners, the river flow regime had changed, it says.

And the survey of selected sand and boulder/gravel mines revealed that there is mismatch between the coordinates of mining sites as given in mining plans and as observed on site inspection.

“As many as 77 of 95 contractors executed agreements after delay ranging between five and 891 days. Nine contractors didn’t execute the agreements,” the audit report says.

The contractors have to deposit security equal to 25% of the annual contract. While 10% security is deposited as initial bid security, the balance 15% is deposited before starting the mining operations.

But 59 contractors deposited balance bid security of Rs 132 crore with delay ranging between three and 854 days and 11 contractors didn’t deposit balance bid security of Rs 29.28 crore, it points out.

The CAG has said department didn’t initiate action against 48 contractors for short/ non-deposit of Rs 49.30 crore in the mines and mineral development, restoration and rehabilitation fund.

RISE IN REVENUE RECEIPTS

In 2017-18 there was an increase in revenue receipts in Haryana over the previous year by Rs 10,198 crore (up by 19.43%).

The total revenue receipt of Haryana in 2017-18 was Rs 62,694.87 crore, up from Rs 52,496.82 crore in the 2016-17 fiscal.

Out of this, 80% (Rs 41,099.38 crore) was raised through tax revenue and non-tax revenue (Rs 9,112.85 crore), the balance 20% was received from the Union government as state’s share.