Iron ore output hits new high in Odisha

08 May 2017

It has been reported that even as revenue earning from the mining sector has crashed to below INR 5000 crore mark, iron ore production in Odisha has reached a record high of 102.66 million tonne in 2016-17 with the State registering a growth of about 27%. Improving its own production rate of 80.8 million tonne in 2015-16, the State has crossed the 100 MT benchmark set for the last fiscal.

It is reported that even as revenue earning from the mining sector has crashed to below INR 5000 crore mark, iron ore production in Odisha has reached a record high of 102.66 million tonne in 2016-17 with the State registering a growth of about 27%. Improving its own production rate of 80.8 million tonne in 2015-16, the State has crossed the 100 MT benchmark set for the last fiscal.

The State has also set another record by dispatching 120.11 million tonne of iron ore as against its target of 110 million tonne. Ore despatch in the last fiscal was 81.66 million tonne.

Minister of State for Steel and Mines Prafula Mallick told this paper that “Miners (both merchant and captive) of Odisha were able to better their performance because of pro-active action of the State Government by timely extending validity of mining leases after enactment of the amended Mines and Minerals Development and Regulation (MMDR) Act.” He said that besides, increased mechanisation for excavation is another factor for the improved production level.

The State Government has already extended the validity of 74 mines before January 11, 2017, the last date for execution of lease in favour of mines waiting for lease extension as per the amended MMDR Act.

The minister said that “More mines are expected to restart operations this year. We are hopeful that iron ore production can touch 120 MT, the target set for 2017-18, if all the mines meet the production level as per their mining plans.” The State has retained the top slot in iron ore production in the country despite a sluggish market and low price for the ore in international market.

The Minister said the State performed better in overall production and despatch of mineral in last financial year. It recorded a total production of minerals of 264.84 MT in 2016-17 compared to 239.45 million tonnes in 2015-16.

Odisha is a leading producer of iron, steel, ferro-alloy and aluminium and has a strong base for coal-based power generation.

The mining sector which drives the State’s economy that witnessed high growth between 2004-05 and 2015-16, was able to generate a revenue of Rs 4,500 crore against a target of Rs 6,500 crore. It is a substantial fall as compared to 2015-16 when the revenue collection from the sector was Rs 5,400 crore. A sharp drop in demand of iron ore and low prices in international markets are the reasons for decline in the income.

Source : EXPRESS NEWS SERVICE