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Mining Boost For Revenue

Bhubaneswar: State has recorded nearly 160 per cent growth in non-tax revenue till June  30, 2021 due to robust growth in mining sector revenue.

The non-tax revenue collection by June 30 was Rs.17656.70 crore as against the collection of Rs.8307.54 crore during the corresponding period last year.

A report on fiscal performance of the State reveals that till June, 2021, non-tax revenue growth was 159.55 per cent, primarily because of revenue collected from mining royalty.

Out of the total non-tax collection amount, the major share is from mining sector despite the slow-down due to the Covid pandemic.

According to the report, mining royalty collection by June 30 was Rs.9338.29 crore—an increase of 212.23 per cent– as compared to June 2020.

Last year Odisha collected Rs.2990.83 crore, while this year it has been able to collect Rs.6347.46 crore more.

The mining revenue continues to register a robust growth with market price of iron ore and other minerals skyrocketing.

Odisha is a mineral rich and ore prices in both international and domestic market is on boom.

While during 2021-22 Budget Estimate for mineral revenue generation was targeted at Rs.13,700 crore, by May 31 Odisha had been able to collect Rs.5731.73 crore from non-ferrous mining & metallurgical sector, said a senior official in the Department of Steel & Mines, adding within one month it has added Rs.3606.56 crore.

During 2020-21 financial year actual collection from the non-ferrous mining and metallurgical industries sector was Rs.13,604.89 crore.

Keeping in view the achievement during last year, the State Government kept the target of Rs.13,700 Crore hardly Rs.100 crore extra keeping in view COVID-19 pandemic.

Notably, the State Government had earned revenue of Rs 13, 604.89 crore from mineral sector during the 2020-21 financial year, despite the Covid-19 pandemic.

It had collected around Rs 11,000 crore from mineral sector in the 2019-20 financial year- not a Pandemic year- as there was less demand in market.

The collection during May 2021 from mineral sector was Rs.3369.68 crore– all time high, while June 2021 collection was Rs.3606.56 crore, said officials.

Officials feel that during 2021-22 the mining royalty is likely to surpass all the previous records as the sector has been responding very positively during the pandemic and as compared to last year is yielding more revenue for the State, said the sources.

The other non-tax revenue from Industrial and water rate has registered 5.77 per cent growth with Rs.162.4 crore collection by June 30, 2021 which was Rs.153.55 crore by that date last fiscal.

The irrigation water rate collection has registered 5.74 per cent growth.

However, the water supply and sanitation revenue has received a jolt with less than 64 per cent negative growth.

Similar is forest and wildlife sources, which received negative 58.81 per cent negative growth.