Odisha To Generate Rs 8,500 Crore Revenue From Mining Sector
The state government aims to raise around Rs 8,500 crore of revenue from the mining sector in the 2019-20 financial year, according to the budget estimate. Odisha being a mineral-rich state gains most of its revenue from mining and metallurgy industries.
“We have surpassed our target in the previous financial year as we had generated around Rs 10,479 crore against the actual target of Rs 7,100 crore,” said Deepak Mohanty, Director of mines. He also remarked that the target has been increased by around Rs 1,400 crore from the Rs 7,100 crore target last year. Whether the actual collection would surpass the target or not, would be determined based on the amount generated in the first two quarters, Mohanty added.
Official figures from the state steel and mines department estimate the collection at Rs 2,036 crore in April and May, which is around 24 percent of the targeted amount. The figure was Rs 1,320 crore for the first two months of the previous financial year.
Prafulla Mallik, state steel and mines minister, said at least 36 mining blocks are ready to put to auction, out of which at least five to six blocks to be auctioned in July or August.
The production of iron ore is still the same at 120 MT for the current fiscal. The royalty while dispatching the minerals is the main source of revenue for the government. The leaseholders submit a 15 percent royalty amount while applying for a route permit to dispatch the produced mineral.
The rise in the price, production, and dispatch of iron ore are the driving forces behind the surge in its revenue. Odisha has already auctioned five mining blocks that are awaiting statutory clearances.