Odisha to set up Rs 818 cr SPV for mine area development

An action plan of Rs 818 crore has been drawn up for Odisha Mineral Bearing Area Development Corporation (OMBADC), a special purpose vehicle (SPV) formed for taking up periphery development work around the mine lease areas.

The major activities include raising social infrastructure, provision of drinking water, sanitation, livelihood promotion, irrigation, skill development for alternative livelihood and supplementary income, environmental upgradation, construction of roads, anganwadi centres, power supply infrastructure, health services and development of sports. The programmes will be coordinated and monitored through a district-level committee under the chairmanship of the district collector, concerned .

The state government's line departments, people's representatives and NGO workers will be involved at the ground level for better implementation. In the first phase, it has been proposed to launch the interventions in eight districts - Keonjhar, Sundargarh, Jajpur, Koraput, Jharsuguda, Dhenkanal, Mayurbhanj and Angul as major portion of the total additional NPV (net present value) of Rs 1,661 crore has been realised from these districts.

The NPV is the amount the user agencies need to deposit for diversion of forest land. It includes the cost of the land along with tangible and intangible benefits of the forest area and is charged in the range Rs 5.8 lakh-Rs 9.2 lakh per hectare, depending on the type and density of the diverted forest land. OMBADC will undertake area development and tribal welfare works for ensuring inclusive growth and environmental upgradation in mineral bearing areas of the state.

The objectives of the corporation include improved infrastructure, facilitating livelihood enhancement, income enhancement of the tribal and vulnerable households, boosting up human development index, environmental sustainability and reduction of income disparity. The corporation will draw its funds from additional NPV realised from mining leases.

About 50 per cent of such NPV will be utilised through this SPV. The onus will be on OMBADC to ensure inter-departmental coordination and convergence with ongoing programmes of the state.