All seems to be not that bad in the mining sector as dispatch of minerals was on the rise during the first and second quarters of the fiscal 2013-14.
While there is a general feeling that the Mining Sector in Odisha is in limbo, stats reveal that there is a rise in dispatch during both the quarters of 2013-14.
However, the fall in the prices of ores and the delay in notifying the average sale prices by the Indian Bureau of Mines (IBM) have resulted in less income on the royalty front.
The latest statistics collected by the Directorate of Mines reveal that in comparison to 2012-13, the dispatch of iron ore lumps and fines increased during the April-June and July-September quarters.
By the end of September, 34.90 million tonnes (MT) of iron ore lumps and fines were dispatched, compared to 29.10 MT during the corresponding period of last fiscal.
But there was a significant fall in the average sale price of iron ore lumps and fines in the market, which has substantially affected the royalty generated for the State in spite of the increase in the dispatch, said in Directorate of Mines officials.
While the State Government has set a target of collection of Rs8,000 crore on non-tax revenue, the expectation from the mining sector is Rs6,000 crore. And till the September-end, the mining revenue collected was Rs2,579 crore against a target of Rs 2,750 crore.
Official sources said mining royalty is assessed on the basis of average sale price of iron ore lumps and fines published by the IBM on a monthly basis. Till date, the IBM has only published the average sale price for the month of April. So, royalty was collected during these six months on the basis of the price of April.
The IBM needs to do the price fixation on a regular basis as it takes into account the market price fetched by 10 non-captive producers and work out the average sale price. It is observed that there is a wide variation of the market price so considered by the IBM for any particular grade of iron pore lumps and fines, the sources said.
Besides, the Union Government is yet to revise the rate of royalty, which is overdue, and such a revision would help improve the State’s mining revenue, said the officials.