NLC India's Neyveli mine has only 46.19 hectares of land left for mining
This audit examined the operational performance of lignite mines and selected thermal power stations of NLC India Limited at Neyveli for the period from 2017-18 to 2022-23.
NLC India Limited (under the Ministry of Coal, Government of India)
- Potential revenue loss of ₹338.62 crore due to lignite shortage caused by land constraints in Mine-II during 2022-23.
- Additional expenditure of ₹364.80 crore incurred for removing dumped soil in Mine-IA due to land acquisition issues.
- Avoidable loss of revenue from minor minerals (ball clay, silica sand, fire clay) due to a 20-month delay in applying for a separate mining lease.
- Mine-II operated without a valid Environmental Clearance (EC) due to failure to submit re-validation applications on time.
- Overburden dumps exceeded Environmental Clearance height limits (up to 120 meters in Mine-II vs. 65 meter limit), causing soil slides, damage to equipment, and compensation payments of ₹2.18 crore.
- Failure to install a continuous slope monitoring system as recommended by IIT Varanasi, despite known safety risks.
- Recommendation to expedite land acquisition, install slope monitoring systems, and adhere to dump height limits.
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Audit report
2025
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Document details
| Official title | 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) |
| Source body | Comptroller & Auditor General of India (CAG) — audit reports |
| Reference number | — |
| Status | closed (audit_report) |
| Year | 2025 |
| Closing date | — |
| Documents | 1 |