Bhubaneswar: With iron ore prices going down in domestic as well as global markets, Odisha’s revenue collection from the mining sector witnessed a sharp fall during 2022-23.
The total revenue collection of the state from the mining sector was estimated at Rs 37,174 crore (provisional figure) during the last financial year, down from Rs 49,858 crore collected in 2021-22 fiscal, according to statistics.
While Rs 43,400 crore revenue was estimated to be generated from the mining sector in the annual budget of the state for the year, the total amount collected from the sector during 2022-23 is much less. Revenue from the mining sector happens to be a major contributor to the state exchequer in Odisha.
The sharp fall in mining revenue was witnessed despite the fact that iron ore dispatch during 2022-23 from the state was estimated to be 138 MT, almost at par with the volume of dispatch during the previous financial year.
Sources said tevenue from the mining sector is being generated in the form of royalty contributed by the leaseholders on the sale value of minerals, mostly from iron ore.
As royalty is collected on sale value of iron ore, the devline in its market price directly affects the collection of revenue from the mining sector.
The export duty on iron ore imposed by the Centre in May 2022, which was withdrawn six months later in November, is also another factor behind low revenue collection from the mining sector as it affected the price, they said.
The annual earnings of the state from the mining sector was estimated at around Rs 10,500 crore to Rs 13,900 crore between 2018-19 and 2020-21. It rose substantially to Rs 49,858 crore in 2021-22 following the auction of around 20 working mines.
