Report of the Comptroller and Auditor General of India on Operational Performance of NLC India Limited Government Ministry of Coal No. 35 of 2025 (Performance Audit-Commercial)
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What did the audit examine?
The audit examined the operational performance of NLC India Limited's lignite mining and thermal power generation operations under the Ministry of Coal, covering the period 2017-18 to 2022-23.
Who / what it concerns
NLC India Limited (operating under Ministry of Coal)
What the auditor found
- 580 hectares of land acquired but not in possession (2000-2023)
- 46.19 hectares of land left for mining with 44.10 million tonnes lignite (only 20 months supply)
- ₹338.62 crore potential revenue loss due to lignite shortage (2.77 million tonnes short supply)
- ₹364.80 crore additional cost for removing dumped soil in Mine-IA
- ₹338.62 crore potential revenue loss from minor minerals due to delayed lease (20 months delay)
- Mine-II operated without valid EC (2018-2023)
- Soil sliding incidents causing ₹17.16 crore compensation and cleanup (₹2.18 crore + ₹14.98 crore)
- Overburden dumps exceeding EC limits (Mine-I: 50m vs 20m limit; Mine-II: 120m vs 65m limit)
Points worth noting
- 44.10 million tonnes lignite reserve sufficient only for 20 months (till November 2024)
- ₹338.62 crore potential revenue loss from lignite shortage and minor minerals
- Mine-II operated without valid EC for 5 years (2018-2023)
| Source body | Comptroller & Auditor General of India (CAG) — audit reports |
| Reference number | — |
| Status | closed (section: audit_report) |
| Year | 2025 |
| Closing date | — |
| Documents | 1 |
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Documents
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