As revenue mop-up lags, Orissa asks captive mines to raise output

FY15 target stood at Rs 6,346 cr, but by November-end, only Rs 2,625 crore could be collected.

Wary of falling mining revenue this fiscal, the Orissa government is planning to ask leaseholders of captive mines to maximise their production of iron ore on par with last year’s output.

Though it had fixed the target of mining revenue at Rs 6,346 crore for FY15, by the end of November it could only collect Rs 2,625 crore against a target of Rs 3,842 crore. With iron prices dropping globally from $140 last year to $70 this year and the forecast for iron ore prices expected to further go down, mining department officials said that meeting the FY15 target is unlikely .

Till November-end, just 32.18 million tonnes of iron ore had been dispatched from mines against a projected target of 78 million tonne till March-end next year. After the mining scam came to light in 2009-10, the number of operational mines have come down from about 180 four years ago to 34 now mainly due to restrictions imposed by the Supreme Court, Ministry of Environment & Forests and other regulatory bodies, thus affecting the mining revenue.

Story continues below this ad

The May 2014 Supreme Court order stopping the operation of 26 working mines whose production accounted for 40 million tonnes last year also hurt production. The decline is also due to less average sale prices of different grades of iron ore published by the Indian Bureau of Mines this year against last fiscal.

Collection from mining constitutes 67 per cent of state’s non-tax revenue and 22 per cent of state’s overall revenue. “Such decline in collection from one of the most potential sources of revenue is a cause for concern,” chief secretary GC Pati wrote in a recent letter to the mining department officials. A senior mines official said the lessees of captive mines would be pursued to raise their production.

Public Safety Minister Gary Anandasangaree said the designation gives law enforcement “enhanced powers to combat a group that has instilled fear through violence and intimidation”.

Canada designates Lawrence Bishnoi gang a terrorist entity

Cities7 hr ago

The Canadian government has labeled the Lawrence Bishnoi gang as a terrorist group, granting authorities more authority to combat their violent behavior. The gang, operating in British Columbia, Ontario, and Alberta, has been connected to 50+ violent incidents since 2023.

View all shorts

Live Blog

PHOTOS