Bhubaneswar: The Comptroller and Auditor General of India (CAG) has flagged several irregularities and implementation lapses in Odisha’s irrigation, mining, fisheries, forest and works sectors, including unfruitful expenditure, short levy of mining dues and delays in execution of projects.
The findings are part of the CAG’s Compliance Audit Report for the year ended March 31, 2024, covering the Fisheries and Animal Resources Development, Forest, Environment and Climate Change, Steel and Mines, Water Resources and Works departments. The report was prepared for submission to the Governor under Article 151 of the Constitution.
In the Water Resources Department, the audit found that 38 Minor Irrigation Projects were awarded without land acquisition and forest clearances, resulting in unfruitful expenditure of Rs 91.57 crore due to non-completion of headworks and distribution systems.
The report said unrealistic budgeting and underutilisation of funds during 2021-24 led to surrender of Rs 520.60 crore. It also flagged inadmissible payment of Rs 6.49 crore in contingency charges to OCCL and non-recovery of Rs 67.54 crore in interest on advances of Rs 510.19 crore released to the organisation.
The audit further noted that 64 Underground Pipeline works were delayed, leaving 19,290.951 hectares of cultivated command area without irrigation as of March 2025. It also said seven check dams, for which Rs 4.26 crore was spent between April 2023 and January 2025, appeared to have already existed at the time of the agreements based on geo-spatial verification, and said the possibility of fraudulent payment could not be ruled out.
In the Steel and Mines Department, the CAG flagged short levy of royalty and other mining dues amounting to Rs 92.38 crore due to non-inclusion of sizing charges in the Run-of-Mine coal price while assessing royalty. It also found that interest of Rs 69.53 crore on delayed payment of mining dues had not been levied and realised.
The audit also identified cases of mineral production beyond permitted limits or without the required Consent to Operate and environmental clearance, involving recoverable amounts running into several crores. In one case, production of 1,17,96,540 tonnes of coal from two mines beyond or without the prescribed environmental clearance attracted a liability of Rs 975.57 crore, according to the report.
In the Fisheries and Animal Resources Development Department, the CAG said 494 incinerators could not be installed or utilised due to non-availability of three-phase electricity, resulting in wasteful expenditure of Rs 16.60 crore. The Forest Department was also found to have suffered non-realisation of Rs 25.90 lakh due to delay in disposal of seized timber, poles and firewood.
The report also pointed to several lapses in the Water Resources and Works departments, including an avoidable extra cost of Rs 3.86 crore from use of higher-grade cement concrete in canal lining, undue benefits to contractors in transportation and dewatering provisions, and Rs 4.07 crore in blocked funds due to an incomplete bridge project in Keonjhar.
The CAG said the audit covered the period 2023-24, while instances noticed in earlier years and matters relating to subsequent periods were also included where considered pertinent.
