The Cabinet, headed by Prime Minister Manmohan Singh, approved the ATR (action taken report) at its meeting this evening, a senior minister said.
The Commission in the first report containing five volumes has recommended a CBI probe into all reported cases of illegal mining during 2008-2011, including the FIRs lodged by the police and vigilance departments.
The high powered panel has also said that the CBI inquiry would also unearth many more untraced cases.
Sources said the ATR states that the government of Odisha is of the view that as the trial of nine criminal cases has already started and the trial courts have taken cognizance of the offences, there is no need of investigation by the CBI.
The ATR, prepared by a Committee of Secretaries headed by Cabinet Secretary Ajit Kumar Seth, states that the Odisha government has conveyed it has taken action against the lessee and power of attorney holder for illegal mining in Joda circle.
The Shah Commission, which submitted its report in two parts, said: "All modes of illegal mining" were being carried out in Odisha and "it appears that law has been made helpless because of its systematic non-implementation."
Recommending recovery of over Rs 59,203 crore from miners in the state for extracting iron ore "illegally and without lawful authority," the Commission said there was a collapse of government machinery during 2008-2011.
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