CAG pulls up NLC India for operating mine without valid environmental clearance 
News Updates

CAG pulls up NLC India for operating mine without valid environmental clearance

The Comptroller and Auditor General of India (CAG) has pulled up NLC India for operating one of its mines without a valid environmental clearance

PSU Watch Bureau

New Delhi: The government auditor Comptroller and Auditor General of India (CAG) has pulled up NLC India for operating one of its mines without a valid environmental clearance.

PSU Watch is now on Whatsapp Channels. Click here to join

In its report, CAG said that NLC India operated its Mine-II without a valid Environmental Clearance (EC) due to the company's delay in seeking EC revalidation.

The audit highlighted that the delay in seeking EC revalidation post a Supreme Court order in August 2017 and a Ministry of Environment, Forests and Climate Change (MoEFCC) notification in April 2018 resulted in unauthorised operations at the mine.

The Audit Report, which contains results of the Performance Audit on ‘Operational Performance of NLC India Ltd’ covering the period from 2017-18 to 2022-23, was laid on the table of the Rajya Sabha on Monday and on the table of the Lok Sabha on Wednesday.

The lack of coordination between the Corporate Environment Cell and the Mine-II Planning Department led to the lapse, restricting NLC India from production and sale of minor minerals, according to the CAG report.

NLC India Ltd, under the coal ministry, operates major open-cast lignite mines and pit-head thermal power stations, primarily at Neyveli, Tamil Nadu and Barsingsar, Rajasthan.

As of March 2023, lignite mining capacity and power generation capacity of NLC India were 27.10 MTPA and 3,640 MW, respectively.

Audit included assessment of lignite production of three lignite mines at Neyveli viz. Mine-I, Mine-IA and Mine-II and review of the operational performance of thermal power station-I (TPS) expansion, TPS-II and TPS-II expansion located at Neyveli.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)

India puts 20 critical mineral blocks for auction in 8th tranche

Reddy unveils maiden India Mining Week 2026, says reforms have made India a top mining destination

India opens coal exchange registrations, moving market reform from paper to practice

SECL's Biranchi Das represents Coal India at BRICS Trade Union Forum Summit 2026

ECL issues appointment letters to 56 candidates under NCWA, R&R Policy