Odisha ranks as the top-most mineral producing state of India. Mines and minerals constitute a fundamental component of nation’s resources and economic base. The rich reserves of minerals in Odisha have led to establishment of several mineral based industries in Odisha.
In the recently released data by Odisha Govt., the total mineral output in FY18 crossed 263 MnT, generating Royalty for the State Government of almost INR 5073 crores.
Iron ore constitutes as the single most important mineral in terms of revenue generation for the State. It accounts for close to half of the total Royalty collected in FY18. It is noteworthy that Iron Ore production is considerably lower in FY18 than the permitted dispatch quantity, as nearly 20 million tonnes of iron ore production has been affected since the closure of mines on alleged illegal mining.
| SL No | Mineral | Production (in million tonnes) | Permitted Despatch (in million tonnes) | Royalty (in Rs crores) |
| 1 | Chromite | 3.648 | 3.635 | 623.94 |
| 2 | Iron ore | 104.98 | 125.9 | 2496.54 |
| 3 | Coal | 143.327 | 139.47 | 1722.32 |
| 4 | Bauxite | 11.367 | 11.31 | 201.88 |
| 5 | Manganese | 0.535 | 0.49 | 29.29 |
| Total | 263.857 | 280.805 | 5073.97 | |
NMDC SHOWS INTEREST IN ODISHA MINING SPACE
State-run NMDC Ltd has offered to augment mineral production in Odisha, which is likely to be hit by shortage of iron ore due to closure of mines. NMDC is interested to operate three mining leases of OMDC (Orissa Minerals Development Company Ltd) in case Odisha government allots in favour of NMDC. Operations have been suspended at a number of mines, where leaseholders failed to meet a deadline on 31 December, fixed by the Supreme Court, for paying penalties in connection with alleged illegal mining.
In another proposal, NMDC said it has asked the Odisha government to allot new leases under the government dispensation route, in which the company would conduct exploration work and develop them into operating mines.
NMDC has also shown interest to put up a pellet and benificiation plant in the state for which allocation of low grade iron ore deposits are sought. This would maximize the utilization and conservation of iron ore.
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