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Mineral Revenue Turns Savior

Bhubaneswar: Due to COVID-19 Pandemic, while other revenue generating sectors are facing slow down, Mineral Sector has turned out to be the savior for the State in generating huge revenue during this 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 668 Percent growth in generation of Mineral Revenue during May, 2021 as compared to May 2020.

This is all time record 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 is not that comfortable in other sectors, Non Ferrous Mining and Metallurgical Industries sector experiencing boom for which Odisha is reaping benefits, officials admit.

While during 2021-22 Budget Estimate for Mineral Revenue Generation was targeted at Rs.13,700 Crore, by May 31 Odisha has been able to collect Rs.5731.73 Crore from Non-Ferrous Mining & Metallurgical sector, admits a senior official in Department of Steel & Mines.

During 2020-21actual collection from the Non-Ferrous Mining and Metallurgical Industries sector was Rs.13,604.89Crores and keeping in view the achievement during last year, State Government kept the target of Rs.13,700 Crore hardly Rs.100 Crore extra keeping in view COVID-19 Pandemic.

In fact 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,  as there was less demand in market, while it was not a Pandemic year.

However in 2021-22 it is likely to surpass all the previous records officials say as the Mineral sector 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 May, 2019, State was able to collect Rs.2036.64 Crore.

This went down during 2020-21 and up to May 2020, collection from  Mineral Sector was Rs.746.69 Crore, which resulted in a negative growth of Minus 63.34 Percent as compared to May, 2019.

However, it surpassed all records and State achieved a growth of 667.62 Percent growth over May 2020.

As compared to Revenue Collection of up to May 2019, State has achieved a growth of 181.43 Percent by 31 May, 2021, officials say.

Collection during May, 2021 from Mineral Sector was Rs.3369.68 Crore, which is also all time high, admit official sources.