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Mineral Boom Boosts Revenue

Bhubaneswar: Odisha has been able to achieve its Annual Mineral Revenue Collection Target in the first five months of Fiscal 2021-22, thanks to ‘Mining Boom’ and overdrive for Revenue Collection by the State Administration.

While in the Budget Estimate of 2021-22 for Mineral Revenue Generation was targeted at Rs.13,700 Crore, and by 31 August Odisha has been able to collect Rs.15,859 Crore from Non-Ferrous Mining & Metallurgical sector, admits a senior official in Department of Steel & Mines. And in first five months of fiscal the State has crossed the target.

Mineral Sector has turned out to be the biggest ‘Revenue Earner’ for Odisha, while generating huge revenue during this COVID-19 Pandemic period and supporting the State Exchequer for funding major developmental programs.

Thanks to overdrive of the senior officials in Department of Steel & Mines, Mineral Rich Odisha has been able to achieve more than a whopping nearly 211 Percent growth in generation of Mineral Revenue in August 2021 as compared to August 2020. So far comparison between 2021 and 2019 of August is concerned; State has achieved growth of 255 Percent.

This is record of sorts and it has come as a great support during the COVID-19 Pandemic, when the State Government requires more funds for generating job opportunities and spending on virus control process, officials admit.

State is facing economic slowdown due to COVID-19 Pandemic and revenue generation in Non Ferrous Mining and Metallurgical Industries sector experiencing boom for which Odisha is reaping benefits, officials admit.

During 2020-21actual collection from the Non-Ferrous Mining and Metallurgical Industries sector was Rs. 13,791.33 Crores and keeping in view the achievement during last year and ongoing COVID-19 Pandemic situation the State Government kept the target of Rs.13,700 Crore.

In fact the State Government had earned revenue more than Rs.13,790 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, as there was less demand in market, while it was not a Pandemic year.

In Fiscal 2021-22 it is likely to surpass all the previous records officials say as the Mineral Sector is experiencing ‘Boom’ and has been responding very positively during the Pandemic and as compared to last year, this sector is yielding more revenue for the State, said sources.

If we take a comparison over collection of Mineral Sector Revenue for last three years during May, it came to fore that by 31 August, 2019, State was able to collect Rs.4473 Crore.

This went up during 2020-21 and up to August 2020, collection from  Mineral Sector was Rs.5094.25 Crore, which resulted in a positive growth of 14 Percent as compared to August, 2019.

However, it surpassed all records and State achieved a growth of 255 Percent growth by 31 August, 2021 as compared with 31 August 2019.

Mineral Revenue Collection of up to August 2021, State has achieved positive growth and collection during August, 2021 from Mineral Sector was Rs.3003.94 Crore, which is also high, admit official sources.