Home Economy Mineral Revenue Jumps 354%

Mineral Revenue Jumps 354%

Bhubaneswar: Mining and Metallurgical sector, a major source of revenue generation in the State, after witnessing a sharp contraction in 2020-21, has bounced back with a robust growth of nearly 354 Percent of the Budget Estimate (BE).

While State Government in Budget Estimate of 2021-22 it was targeted for collection of Rs.13,700Crore from Non  Ferrous Mining & Metallurgical Sector, actual collection on 31 March recorded a whopping Rs.48,490 Crore, officials admit.

The State has collected Rs 13,791crore revenue from mineral sector in the year 2020-21.

As per the available data on the total mineral revenue collection in 2021-22 was Rs. 48,489.98 Crore.  This is a substantial jump in mineral revenues which would allow the state to direct spending towards developmental purposes, said asenior official.

While collection from Mineral Sector in 2019-20 was Rs.11,020Crore, target for 2020-21 was set for 13,000 Crore.

During 2021-22 collection from Mineral Sector was showing continuous growth and so far growth as compared to last fiscal it recorded 251.59 Percent.

State collected one of the highest mineral revenue of Rs.7892.63 Crore  in March-2022. This is all time record, official admit.

International prices in the market is on high rise and with Odisha has been successful in implementing mineral sector reforms in an effective way, the State Government is reaping rich dividends, say officials.

Prime Minister NarendraModi is on record appreciating the efforts of Odisha Government on Mineral Sector Reforms.

Replying to ‘Motion of Thanks on President Ram NathKovind’s Address to Parliament in the upper house, Prime Minister NarendraModi spoke on cooperative federalism gave examples of reforms in coal and mining sectors.

“These reforms are important decisions of cooperative federalism. Odisha has been at the forefront of implementing these reforms. I congratulate the Odisha Chief Minister…his government worked for all the reforms working shoulder to shoulder with us,” PM Mr.Modi said

“With a renewed vigour to industrialize the state, harnessing of the natural resources in a sustainable manner changed the economic landscape of the State,” said a senior official.

Within industry, mining and quarrying has 1/5th share in gross value added. Therefore, such a rebound in the sector has resulted in overall high growth of the industrial sector, it said.

Odisha accounts for India’s 96 per cent chromite, 92 per cent of nickel, 51 per cent of bauxite, 33 percent of iron ore, 43 per cent of manganese ore and 24 percent of coal reserves.

Odisha is the largest steel and stainless-steel producer in the country with the installed capacity of MoU-based Steel Plants being 25.27 MTPA, an increase of around 20 per cent over the last five years.

Mining generates different categories of employment including unskilled or semi-skilled labour. By the end of 2020-21, around 61,400 workers were employed directly in major mineral activities. Coal mining directly employed nearly 21,890 workers followed by iron ore (21,670 workers), chromite (7,690 workers) and manganese (3,900 workers), states the Economic Survey Report.