Odisha to Auction 15 Mineral Blocks in Current FY, Pralhad Joshi informs Lok Sabha

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By Our Correspondent

BHUBANESWAR/NEW DELHI: Union Mines, Coal and Parliamentary Affairs Minister Pralhand Joshi in Lok Sabha on Wednesday , informed that the Odisha Government, which had successfully auction 34 mineral blocks in last 5 years, is gearing up to put more 15 blocks including 7 iron ore mines, 4 bauxite, 2 manganese, 1 limestone & dolomite and another copper & nickel blocks for auction during the 2022-23, for auction.

These Blocks included Laupada, Rengalaberha N-E extension & Nuagaon West, Alaghat West, Gandhalpada West, Kendudihi North, Roida-I and Jhumka-Pathiriposhi West iron blocks ,  Ballada, Nunapaimali, Sijimali and Kutrumali bauxite mineral blocks,  Tunmura Limestone & Dolomite mine, Bhanjikusum Manganese Block, Dudhisasol East Copper Block and Kutinga Manganese Block, Joshi said in a written replying to Keonjhar BJD Lok Sahbha MP Chandrani Murmu..

It may be noted here that , Odisha had  already issued Notice Inviting Tender (NIT) for auction of 4 mineral blocks based in Sundargarh district on March 29, 2022. The mines are– Koira, Kadodihi Iron ore Block, Orahuri Manganese & Iron ore Block, Kusumdihi Manganese & Iron ore Block and Kedesala NorthEast Iron ore block.

So far, 36 mining blocks including 26 Iron-Ore, Manganese, 3 Manganese, 3 Chrome, 2 graphite and 3 limestone have been auctioned so far after the new mining and mineral policies while, 22 currently working, Odisha Steel and Mines Minister Prafulla  Mallick had  said in State Assembly.

In the financial year 2020-21, the mining revenue was Rs 13,791 crore, while in 2021-22, the mining revenue was Rs 49,530 crore. So far this year, Rs 11.8 crore of revenue has been collected which is 21.78 per cent of the previous year in Odisha.

This year, the total production of minerals is 107.546 million tonnes. Similarly, 100.612 million tonnes have been transported, which accounts for only 50 per cent of the country’s iron ore demand.

Meanwhile, on matters of royalty, Minister Joshi said, the rates of royalty on minerals are revised from time to time under sub section (3) of Section 9 of the Mines and Minerals (Development and Regulation) Act, 1957. Royalty rates were last revised on 01.09.2014.

Ministry of Mines vide Order dated 27.10.2021 has constituted a committee for reviewing of rates of royalty of those minerals where royalty is calculated on per tonne basis and the committee has submitted its report on 07.03.2022.

No such time frame has been decided. In terms of Section 9(1) of the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, every mining lease holder needs to pay royalty for major minerals removed or consumed as per the royalty rates specified in the Second Schedule of the MMDR Act, 1957. As per Section 9 (3) of the MMDR Act Central Government shall notify the rate of royalty payable in respect of a mineral. Royalty is collected and retained by the State Governments concerned.

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