Post auction mineral revenues in Odisha have seen collections for the state government whose mineral collections crossed INR 19,000 crore in the first six months of FY 2021-22, far exceeding the INR 13,600 crore collected for the full FY 2020-21.
This bounteous earning comes from royalty on strong iron ore prices but also on the high premiums the mines are paying. Wrapping up a successful second round of mineral auctions, the state’s steel and mines department expects to cross INR 40,000 crore by the end of the financial figure.
A senior government official said the state would be executing lease deeds by the month end and hopes to include the upfront payments in the year’s total. The bids for the nine iron ore mines, most of them greenfield, averaged to 117 percent surprising many.
Up until 7 October, the state’s steel and mines department had collected INR 19,118 crore compared to INR 5,947 crore during the same period, a 200 percent increase. The department is also claiming shortfall compensation from miners failing to meet their Mine Production and Development Agreement targets.
The total collection from the mining and metal sector in the first six months has also surpassed the total collection of Rs 11,200 crore in 2019-20. Mineral revenues have come at a critical time for the state coping with post pandemic economic challenges.
Mining has contributed nearly 60% of state’s overall revenue collection (around INR 33,000 crore) in the first six months. Until October 7, an estimated 69.13 million tonnes of iron ore were produced against 67.64 mn t produced in the first six month of last year. Production of coal stood at 87.04 MT compared to 69.07 MT during the corresponding period of the last fiscal.
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