Bhubaneswar: Reformation in the mining sector, which produced the Head of Minister of Naveen Patnik Praise Prime Minister at Rajya Sabha on Tuesday, helped the country’s great income even during the Covid-19 pandemic.
Steel and mine officials said that Odisha had, so far, produced RS 36,321 crore from mining, which was almost four times the income collected during the same period last year, registering growth of more than 300%.
“This substantial growth is mainly due to the collection of premiums from mineral blocks auctioned over the past few years.
The total collection of this sector can touch Rs 45,000 Crore at the end of the current financial year (March 31),” said a senior mining department official.
The mining and metal sector is estimated to produce RS 11,200 Crore for 2019-20, while it is pegged around RS 13,800 Crore in the financial year 2020-21.
For current fiscal (2021-22), the state government has set a target of collecting RS 25,000 Crore in revenue from this sector.
This year’s iron ore production was almost equivalent to last year.
At 114 million tons, iron ore production rose 3mt from last year.
The main reform carried out by the state government in the mining sector includes accelerating the auction process in accordance with the provisions of the 2015 New Mining Act (Development and Regulation) Law (Development and Regulation), applied by the Government of Narendra Modi.
The state government, so far, auctioned more than 30 mineral blocks while almost 20 of them have started production.
Apart from royalties and premiums, the state has also made a large income under the funds of the Mineral Foundation (DMF) district, which has been spent to improve the life standards of people in the mining affected areas.
More than RS 16,000 Crore has been collected under DMF in the state.
Adoption The online method for tracking production and shipping of mineral resources is another reform carried out by the state government in this sector.
In his reply to the movement thanks to the address of the President at Rajya Sabha, Prime Minister Narendra Modi praised the head of the head of Naveen Patnaik because it was at the forefront of reform and for the excellent implementation of the central scheme in the spirit of the actual cooperative federalism.
Odisha: Mining reforms encourage state revenues by 300%
