Odisha seeks Centre's backing for allocation of key mineral blocks to OMC

Chief Minister Mohan Charan Majhi has sought allocation of key bauxite and iron ore blocks to OMC and faster clearances to strengthen Odisha's mining sector

With the Odisha government pushing aggressively to secure raw material resources for its expanding industrial base, Chief Minister Mohan Charan Majhi has sought greater support from the Centre to strengthen the state's mining sector, expedite clearances for mineral blocks and enhance Odisha's contribution to the national economy.

 

He urged Union Coal and Mines Minister G Kishan Reddy to expedite forest and environmental clearances for mineral blocks already auctioned in Odisha. He also requested the allocation of the Shashubohumali bauxite block and the Thakurani iron ore block to the state-owned Odisha Mining Corporation (OMC).

 

While the Shashubohumali mineral block in Rayagada district has deposits of around 81 million tonnes of high-grade bauxite, the Thakurani iron ore block in Keonjhar district contains more than 50 million tonnes of iron ore resources.

 

 

At a meeting with Reddy here on Monday evening, Majhi highlighted Odisha's growing importance in India's mineral economy and industrial development, informing him that the state produced around 471 million tonnes of minerals during FY26 and generated nearly Rs 46,000 crore in mining-related revenue.

 

He said Odisha has emerged as a key driver of the country's industrial growth and stressed that active cooperation from the Central government would be crucial to further accelerate the state's progress in the sector.

 

The discussions also focused on improving mining logistics and infrastructure. Majhi underscored the need for rapid expansion of railway and port infrastructure to make mineral transportation more efficient and cost-effective. He said enhanced connectivity would strengthen Odisha's competitiveness as a major mining and manufacturing hub while facilitating faster movement of minerals to domestic and export markets.

 

Addressing environmental concerns associated with mining activities, the chief minister proposed the preparation of a suitable framework for repurposing abandoned coal mines through the use of fly ash. Such an initiative, he said, would contribute to environmental protection while enabling productive utilisation of mined-out areas. He also sought Central assistance in deploying advanced technologies for mineral exploration to improve resource assessment and unlock new reserves.

 

Responding to the issues raised by the state government, the Union minister acknowledged that many challenges facing the mining sector require coordinated action by multiple ministries and departments, including Railways, Ports, Forest and Environment. Reddy proposed convening a high-level meeting involving all concerned ministries and the Odisha government to address pending issues through a coordinated and consultative approach.

 

The chief minister and the Union minister also reviewed the development of mining-affected regions and measures aimed at improving the welfare of local communities. It was also decided to implement welfare schemes in a saturation mode in line with Prime Minister Narendra Modi's vision, ensuring that all eligible beneficiaries in mining regions receive the benefits of government programmes.

 

Officials and stakeholders stressed the need for an integrated approach involving Central and state government schemes, District Mineral Foundation (DMF) funds and corporate social responsibility (CSR) initiatives undertaken by mining companies.

 

Officials informed the Union minister about Odisha's proposed 'CM Sampada' initiative, which seeks to ensure comprehensive development of mining regions through the convergence of various welfare and infrastructure programmes. The initiative aims to improve living standards, infrastructure, healthcare, education and livelihood opportunities in mineral-bearing districts.

 

The operational issues faced by major Central public sector enterprises engaged in the mining and mineral sector were also discussed. Senior officials from Mahanadi Coalfields Limited (MCL), Neyveli Lignite Corporation (NLC), Singareni Collieries Company Limited (SCCL), National Aluminium Company Limited (Nalco) and the Indian Bureau of Mines (IBM) participated in the discussions and presented issues related to mining operations, logistics, clearances and future expansion plans.

 

Among those present at the meeting were Union Mines Secretary Piyush Goyal, Chief Secretary Anu Garg, Development Commissioner D K Singh, Additional Chief Secretaries Hemant Sharma, Saswata Mishra, Arabinda Padhee and Usha Padhee, and senior officials from the Ministry of Mines.