Odisha earns 19,000 cr in first 6 months of FY 21 from mining

BHUBANESWAR: The state government has recorded more than 200% growth in revenue from the mining and metal sector in the first six months of the current financial year. The state’s revenue from the mining and metal sector as on Thursday is estimated to be around Rs 19,118 crore, which is much more than the Rs 5,947 crore collected during the corresponding period of the previous fiscal.
The first six months’ collection from the sector is also more than the total collection of the previous fiscal as mining had contributed Rs 13,600 crore in the 2020-21 fiscal and Rs 11,000 crore in the previous financial year.
Though the state’s revenue from all sources is yet to be estimated officially, sources said it could be around Rs 33,000 crore by the end of September, which means that the mining sector contributed over 60% of total revenue in the first half of the current fiscal.
The substantial growth in the collection of mining revenue is mainly because of collection of premiums from the mineral blocks auctioned early last year. We hope the total collection from the sector by the end of the fiscal may touch Rs 40,000 crore, which will be a record in revenue collection,” said a senior official of the steel and mines department.
Every year the mining sector contributes a major chunk to the state’s overall revenue. Over the past few years that has been in the region of 25%. Huge growth in revenue collection from the sector would come as a breather for the state government trying to bring the pandemic-hit economy on track.
While the state government had successfully auctioned 19 blocks with high premium during February-March last year, production and dispatch in as many as 16 of them have already started.
he official said production of iron ore and coal has also increased this fiscal compared to last year. Iron ore production till date is estimated at 69.13 million tonne (MT) compared to 67.64 MT produced by October 7, last year.
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