Illegal mining: Govt incurring Rs 18-20k cr loss, says PAC

PAC chairperson Krishna Byre Gowda tabled the report, which was compiled based on CAG observations on the department of mining and geology

Karnataka is incurring a loss of Rs 18,000-Rs 20,000 crore due to the illegal extraction of minor minerals, the Public Accounts Committee (PAC) has said in its report tabled in the Assembly on Tuesday.

PAC chairperson Krishna Byre Gowda tabled the report, which was compiled based on Comptroller and Auditor General (CAG) observations on the department of mining and geology.

The CAG report took one taluk - Chikkaballapur - for its audit and stated that the government lost potential revenue to the tune of Rs 2,324 crore due to illegal mining. Based on this, the PAC took stock of mining across the state, pegging the loss to be in the range of Rs 18,000 to Rs 20,000 crore.

The report also pointed out that the state government did not have an inventory of mining areas concerning minor minerals, which include building stones, granite, gypsum, silica sand, jasper and so on.

An inventory has to be prepared within three months, the PAC has recommended.

The committee further expressed disappointment that in spite of Karnataka leading the country in technology innovation, the government was still banking on outdated methods to identify mining areas. The latest technology must be used and the department should identify those mining without licences and those exceeding permitted boundaries, it added.

At present, the state government is generating a non-tax revenue of Rs 6,300 crore through the extraction of minor minerals. There is potential to triple this amount, the report stated.

In another report on the state’s finances, the PAC has pointed out that several departments have failed to produce bills for expenditures incurred in 2019-20. While it is mandatory for departments to produce bills on the expenditure to the Auditor General within 18 months of fund release, departments have failed to submit them. This has been found in as many as 51 cases, amounting to Rs 182 crore. As a result, it is difficult to ascertain where the money has gone, the report said. It has directed the finance department to pull up the department heads for this.

Apart, several departments are failing to make use of the funds allotted to them. Such instances have only grown between 2011-12 and 2019-20. The departments are unable to come up with action plans on time, delaying fund allocation. This has resulted in the under-utilization of funds, it has said.