Bhubaneswar: Odisha, the biggest iron ore producer in the country is aiming at a production of 100 MnT in this fiscal. Iron ore production in the state jumped from 50 MnT in FY15 to 75 MnT in last fiscal. This came on the back of the state government’s swift orders to extend the validity of mining leases after the enactment of the amended Mines and Minerals- Development & Regulation (MMDR) Act.
“The state government is taking several steps to ramp up iron ore production. We have already extended the validity of 63 mining leases. During the current fiscal, iron ore production in the state should increase to 100 MnT, said Mr. R K Sharma, principal secretary (steel & mines), Odisha at an Assocham conference on ‘Mining in Odisha’. Pan-India iron ore production is projected at 180 MnT this fiscal.
On the other hand royalty from iron has become the highest contributor to Odisha’s annual mineral revenue, surpassing coal. While in FY16 Odisha’s total mineral revenue was INR 56.75 bn, the contribution from iron ore royalty was INR 29.20 bn, followed by coal royalty of INR 16.20 bn. So if iron ore production crosses 100 MnT this year, the royalty collection will be higher.
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