Odisha CM Stresses On Further Reforms In Mineral Sector

Bhubaneswar: Chief minister Naveen Patnaik on Wednesday emphasised on further reforms in mineral sector to ensure uninterrupted supply of ore to industry and safeguard the employment and state revenue.

He raised the issues during a meeting held through video conference with Union Coal Minister Pralhad Joshi and Petroleum Minister Dharmendra Pradhan.

He said Odisha has been one of the first state to successfully conduct auction of mineral blocks in accordance with the orders of Supreme Court. However, there have been some glitches in commencement in mining operations leading to disruptions in production and dispatch leading to shortage of minerals for end user industries and price rise. Such disruptions and uncertainties in production and dispatch are undesirable, especially during these times. Shortages of ore and resultant high price has posed a challenge for the sponge iron plants, small and medium size steel plants.

Naveen suggested that the state and Central PSUs can play an important role in maintaining the level of supply of ore to the end user industries at such critical moments. Their strong presence in the mineral market will ensure smooth supply at reasonable prices. This shall go a long way in mitigating the constraints faced by the MSME in this sector.

He proposed reservation of some of these expired working mineral blocks under provisions of section 17A of the MMDR Act to State PSUs like OMC to ensure uninterrupted supply of ore to the end-user industry. Odisha supports further mineral sector reforms and streamlining of procedures which will go a long way in unlocking the mineral resources of the Country and give a boost to the economy, he added.

One of the longstanding issues of Odisha and other State Governments has been the revision of royalty for minerals other than coal. This revision has been pending since 2017. Similarly, royalty on coal has been due since September 2017.

Though the clean energy cess has undergone multiple enhancements, there has been no accrual to the state. The chief minister requested for early action in this regard as this will greatly benefit the state, especially in a post-COVID scenario.

Minister of Steel and Mines Prafulla Mallick, Chief Secretary Asit Tripathy, Union Coal secretary Anil Kumar Jain, Development Commissioner Suresh Chandra Mahapatra, Secretary to CM (5T) VK Pandian and OMC MD Vineel Krishna were also present