Bhubaneswar: Hitting out at the Odisha government over its approach towards the mining sector, Biju Janata Dal (BJD) MLA Ranendra Pratap Swain on Monday said the state contributes nearly 50% of India’s national mineral wealth, but continues to struggle with extreme poverty, large-scale migration, and unemployment.
Despite possessing vast mineral reserves, Odisha’s debt burden has surged to Rs 1.40 lakh crore, while mining operators are handed undue profits exceeding Rs 2 lakh crore, Swain said while participating in the discussion on budgetary demands of Steel and Mines department in the Assembly.
In his address, Steel and Mines Minister Bibhuti Bhushan Jena informed the House that budgetary demand of Rs 404,39,12,000 has been proposed for the department for 2025-26.
The BJD legislator said unchecked exploitation of mineral resources has caused environmental degradation, drying up rivers, destroying ecosystems, and pushing millions into distress.
Lamenting that the state is suffering substantial revenue loss due to policy loopholes, the BJD legislator sought corrective measures by the state government.
Despite Odisha being the sole producer of metallurgical-grade bauxite and holding the highest reserves, it is taxed at a much lower rate (0.6% of the LME price) compared to non-metallurgical bauxite, which attracts a 25% royalty, he said.
Swain sought to know as to why metallurgical bauxite should not be taxed at 50% of the ad valorem value of bauxite instead. Odisha earns approximately Rs 175 per tonne from bauxite, while global prices are Rs 7,000 per tonne, he said.
Referring to coal sector, he said Odisha produces 240 million tonnes of coal annually but consumes only 20 million tonnes. Excess coal production leads to environmental destruction, river depletion, and increased heat waves.
Stating that Odisha sells coal at Rs 900–3,500 per tonne, he said imported coal of the same grade is priced at Rs 13,000 per tonne.
Noting that West Bengal imposes a 25% cess on coal, Swain said Odisha can implement the same and generate Rs 70,000 – 1 lakh crore more annually.
Regarding chromite, the senior legislator said Odisha is India’s sole producer of chromite and the state receives only 15% royalty (Approx 3000/Tonne). By imposing 50% cess (approx 18000/Tonne), the State can generate 6000 crore annually approx. 4500 crore more than what Odisha is getting now.
Similarly with the Iron Odisha can get 40000 crore more revenue and from Manganese approx 400 crore more than what Odisha is getting now by not imposing 50% cess on market value. This is just an example of five minerals produced in Odisha. There are many more, and if sold at proper market prices, they will together generate lakhs of crores in additional revenue for the state.
Referring to the Supreme Court’s judgments of July 25 and August 14 of 2024, the BJD MLA said these verdicts enable Odisha to recover more than Rs 2 lakh crore annually. Additionally, Odisha is entitled to Rs 1.5 lakh crore in retrospective dues from mining operators. Despite clear judicial directives, the state government is intentionally avoiding implementation by citing the ORISED Act 2004, which is still pending before the Supreme Court, he claimed.
However, the ORISED Act 2004 and its Rules 2005 have become redundant and lost their relevance. By not introducing a new bill, the state government is losing approximately Rs 2 lakh crore every year, he said.
Speaking about auctions, Swain said the Odisha government is auctioning mineral blocks during a recession in the metal market, which will lead to severe revenue losses. Instead of auctions, the state should allocate these blocks to Odisha Mining Corporation (OMC) to ensure better revenue generation and control over resources, he said.
Noting that the Chief Minister had pledged to act on the Justice Shah Commission report on illegal mining, the senior leader said no concrete action has been taken. The mining syndicate has accumulated enormous wealth and now exerts control over Odisha’s political spectrum, he said
Swain further stated that unregulated mining and industrial waste disposal have severely affected rivers like Brahmani, Baitarani, Mahanadi, Nagabali, Indravati, and Rushikulya, contributing to environmental degradation and increasing the risk of heat waves. Rising pollution, ecosystem collapse, and public health crises continue unchecked. Despite being a Scheduled Area state,
Odisha has not implemented the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA), allowing corporate exploitation of land and minerals, he said.
The BJD MLA said Odisha must stop mineral auctions till the PESA is fully implemented across the state and transfer mines to OMC for state-controlled resource management. It should implement the Supreme Court’s Judgement to impose cess and taxes on all minerals and mineral-bearing lands, revise the long-term linkage policy to reflect fair market prices.
The government should withdraw the petition pending before the Supreme Court and introduce a new bill in the Assembly in place of ORISED (Odisha Rural Infrastructure and Socio-Economic Development) Act 2004, he said.
Instead of involving third-party MDOs, the government should empower local cooperatives from the Gram Sabha level to state-level cooperatives. “Odisha’s wealth belongs to its people, not a privileged few. It is time to save Odisha and liberate it from the mining syndicate,” the BJD legislator added.
