Odisha’s AI Crackdown: New Tech Shield to Stop Illegal Mineral Discrepancies

20 Dec 2025, 08:55 by Vinay Kakkad · KalingaTV

In a major regulatory overhaul aimed at ending the era of manual manipulation in the mining sector, the Odisha government has introduced the Odisha Minerals (Prevention of Illegal Mining and Regulation of Trading, Transportation and Storage) Rules, 2025.

These reforms specifically target long-standing discrepancies where actual mineral extraction often exceeds reported figures, leading to massive revenue leakages for the state exchequer.

The Core Shift: Ending Manual Interference

The primary driver of “excess mining” has historically been manual sampling and reporting, which allowed for the under-reporting of mineral grades and quantities. The new rules replace these with AI-driven automation:

Automated Bulk Sampling: The government has made it compulsory to use direct bulk sampling and analysis. Mineral grades will now be determined continuously via online analysers installed directly on conveyor belts.
Binding Data for Revenue: Data generated by these automated analysers will be the final and binding basis for calculating royalties, District Mineral Foundation (DMF) funds, and other statutory dues. This removes the “human element” that previously allowed for the downward revision of mineral quality to pay lower taxes.
Permissible Tolerance Limits: To prevent “leakage” through measurement errors, a scientifically defined tolerance limit is set. Any deviation beyond this between the online readings and government lab checks will trigger immediate penalties and revenue recovery.

Addressing Discrepancies in Mining Volume

To tackle the issue of mining more than what is reported (illegal “extra” extraction), the state has mandated a 360-degree digital surveillance system:

AI Camera Surveillance: 100% camera coverage is now mandatory for stacking areas, weighbridges, and exit points. These AI-enabled cameras are programmed to detect ore size and type automatically.
Automated E-Pass Disabling: If the AI detects a discrepancy—such as a truck carrying a different grade of ore than declared or unauthorized movement—the digital platform will automatically disable the generation of e-passes, effectively halting the dispatch of that mineral.
Single-Entry/Exit Stockyards: All stockyards must now have a single-entry and single-exit design. These gates are interlocked with RFID readers and Automatic Number Plate Recognition (ANPR). This prevents the “re-entry” of trucks or the movement of minerals through undocumented routes.

Strict Controls on Transportation & Storage

The new guidelines specifically target the “middlemen” and intermediate points where mineral diversion usually occurs:

Stockyard Restrictions: Intermediate stockyards cannot be established within a 40-km radius of the mining source (with some exceptions for PSUs). This is designed to prevent “mixing” or “dumping” of minerals before they are officially weighed and taxed.
Storage Caps: Storage for sale is capped at 50,000 tonnes, and minerals can only be stored after all statutory dues (taxes/royalties) have been paid.
Uptime Mandate: Mining lessees must ensure a 95% uptime for all digital systems (analysers, cameras, weighbridges). If the systems go dark, the mining operations essentially lose their legal “digital cover” to operate.

The Unified Digital Platform

All this data—from the conveyor belt analysers to the AI cameras and weighbridges—is fed into a unified state-controlled digital platform. This platform serves as a “single source of truth,” ensuring that what is dug out of the ground is exactly what is reported, transported, and taxed, leaving no room for the “excess mining” discrepancies that have historically plagued the sector.