Page 10 - Mines and Minerals Reporter eMagazine - Volume December 2024

MINING GROWTH

Mining also generates revenues for the government at
both the central and state levels. For the state government,
minerals generate (i) statutory revenues from royalties, rent
etc, (ii) profits and interest income received from public
enterprises functioning in the sector. As Odisha is a mineral
rich state, it contributes substantial amount of revenues for
the State government. The production, dispatch of minerals,
and collection of mineral revenue in Odisha from 2016-17 to
2020-21 is presented in TableIn 2020-21, it is estimated that
State collected INR 13,918 crore from minerals. The State’s
total revenue receipts in 2020-21 as per revised estimates
were INR 1, 07,200 crore. This makes mineral revenues 13 per
cent of total revenue receipts. This reflects the importance of
mineral revenues to the State Government fiscal management
and the resources available for development expenditure.

Tribal people and other groups receive work from mining and It can be noticed from table, that there was a substantial
quarrying. The number of workers who were directly employed jump in 2018-19 in mineral revenues. This was primarily a
in various mining activities between 2004 and 2005 is shown consequence of the 2015 and 2016 amendments of the Mines
in Table above. Because this industry has increasingly used and Minerals (Development and Regulation) Act which led to
labor-saving and capital-intensive manufacturing processes revision in royalties and collections for the District Mineral
and technology over time, there have been several years Fund.
with negative growth. However, by the end of 2010–2011,
employment had reached 51,877, an increase of 18.7 per cent Mineral revenues have played an important role in State and
over 2009–2010. The mining industry is not favourable from allowed fiscal space to undertake developmental intervention.
an equity standpoint for reducing poverty by creating jobs. Post June 2022, GST compensation cess may be discontinued.
As per 2021-22 Budget Estimates, 124 GST compensation cess
year Mining revenue (Rs. In crore) Annual Growth rate (%) constituted nearly 10 per cent of revenue receipts. Considering
2000-01 360.31 - expected impact on state finances, mineral revenues are one of
2001-02 378.31 4.99 the potential non-tax revenue sources that could mitigate the
fiscal impact. As per the estimates available up to December
2002-03 443.53 17.23
2021, total mineral revenue in 2021-22 was INR 32,485 crore.
2003-04 550.76 24.17 This is a substantial jump in mineral revenues which allows
2004-05 670.51 21.74 the state to direct spending in development sector. However,
2005-06 805.00 20.05 infrastructural capability to handle further cargo movements
2006-07 936.55 16.34 as well as other associated facilities may come on the way
2007-08 1126.09 20.23
2008-09 1380.59 22.60
2009-10 2020.72 46.36
2010-11 3330.47 64.81
2011-12 4586.65 37.71
2012-13 5679.35 23.82
2013-14 5519.58 -2.81
2014-15 5310.09 -3.79
2015-16 5797.79 9.184
2016-17 4925.66 -15.04
2017-18 6130.97 24.47
2018-19 10479.18 70.92
2019-20 11019.86 5.159
2020-21 13918.20 26.30
CAGR 19.01
Table 2: Annual Growth rate of mining revenue

8 MINES & MINERALS REPORTER / DECEMBER 2024