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Odisha tops in mineral output value with 34% of total: Economic Survey

Odisha leads in the outbound movement of limestone, iron ore, manganese ore and metal products

Jayajit Dash  |  Bhubaneswar 

New ground realities in iron ore
Iron ore

Odisha aces other mineral producing states in value of output. In 2017-18, Odisha known for its immense repository of minerals, contributed 34.3 per cent to the total production by value. Rajasthan had to contend at the second slot, accounting for 18.8 per cent share, data by the 2018-19 for Odisha showed.

According to the survey's findings, Odisha is a major supplier of raw materials to other states. It leads in the outbound movement of limestone, iron ore, manganese ore and metal products. In 2016-17, Odisha exported 67.5 per cent of iron ore, 31.8 per cent of manganese, 21.7 per cent limestone and 26 per cent coal to other states. In intra-state movement of minerals, Odisha leads in limestone, dolomite, gypsum, manganese and iron ore. Only Chhattisgarh, its geographically contiguous neighbour trumps Odisha in movement of coal and coke with a share of 26.7 per cent, marginally bettering Odisha's 26.5 per cent.

Mining and quarrying sector contributed 10.79 per cent to Odisha's Gross Value Added (GVA) in 2018-19. The state occupies an important spot in the country's mineral production map. Endowed with 96 per cent of the country's chromite reserves, 92 per cent of nickel, 53 per cent of bauxite, 45 per cent manganese, 35 per cent iron ore and 25 per cent coal, mining royalty is the biggest non-tax contributor to the state's revenue stream. The state realised Rs 6130.97 crore by way of mining revenue from production of 270.84 million tonnes (mt) and 287.80 mt despatch of minerals in 2017-18. In last fiscal, the mining revenue is estimated to have crossed Rs 10,000 crore.

As a sector, mining and quarrying is a significant employment generator. At the end of 2017-18, 55940 workers were directly employed in major mineral activities. Coal mining is the largest employer directly absorbing 22,200 workers followed by iron ore (19,600) and chromite (6074).

Odisha has been at the forefront of auctioning virgin mineral blocks after the amended Mines and Mineral Development & Regulation (MMDR) Act was notified on January 12, 2015. In 2015-16, the state was the first to auction an iron ore block- Ghoraburhani-Sagasahi block with 99.5 mt of deposits. Two more iron ore blocks- Netrabandh Pahar and Kalamang West were put to online auctions in May 2017. While no block could be auctioned in last financial year because of pending litigation, Odisha is prepared to bid out 40 new blocks in 2019-20.

First Published: Wed, July 03 2019. 17:53 IST
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