Lockdown impact : Odisha’s mining revenue slips 66% during April-May
Bhubaneswar: Odisha, one of India’s leading mineral producing states, has reported 66 per cent drop in mining revenue for the months of April and May mainly due to the lockdown related disruptions.
According to the data provided by the state directorate of mines, Odisha has collected total Rs. 641 Crore as mining revenue till May 29 in the current financial year, as compared to Rs. 1872 crore in the corresponding period of last year, thereby registering a drop of 65.75 per cent.
Despite mining sector being classified as an essential sector in the lockdown guidelines, low dispatch and logistic related disruptions have reportedly impacted the mining output.
“ Mining operations have been impacted due to the lockdown. Several mines are not operating with their 100 per cent capacity and mineral dispatch has also been declined due to closure of factories. Due to all these reasons mineral output has impacted” said Deepak Mohanty, Director of Mines, Odisha.
Odisha has collected mining revenue of Rs.10,943 Crore in the recently concluded 2019-20 financial year.
Mining being the main source of income for the state, sharp fall in mining revenue coupled with lower GST collection is likely to impact the state’s finances. While the state had reported 64 per cent drop in GST collections in April, it is likely to drop further in the current month also.
However, the state aims to augment mining revenue in the coming months after commencement of mining operation by new leaseholders who have secured mining blocks in the February round of auction.