Joda in Keonjhar district apart, the Koira mining area of Sundargarh district is another major revenue generating mining division of the State. That is why for the 2014-15 fiscal, the Government has fixed a target for revenue worth Rs900 crore. But due to prolonged closure of many mines in the region, the revenue collection may drop severely.
According to information available, till the end of November 2014, the total revenue collected was worth Rs453 crore. So in next four months the rest Rs447 crore needs to be generated to reach the target. But this would be quite impossible as the quantum of iron ore and manganese raised so far has been far below the target, said an official of Koira DDM office.
According to him, from April 1 to November 30, 2014, only nine million 362 metric tons iron ores have been produced. So to achieve the target, another nine million 211 metric tons production is required to be achieved from December 2014 to March 2015 which would be difficult as many mines are closed down. The similar condition prevails in manganese mining sector in Koira region too. There was a time, when about 15,924 metric tonnes of manganese were raised from Koira sector and now it has come down to very nominal figure. An employee in Koira DDM office said on the one hand the Government is giving stricture not to take up mining activities and on the other, it is setting high target on revenue generation which is just impossible. It is learnt that in last 30 years, the revenue generation in Koira region has been much more that the target but in the present fiscal, it would be reverse.
It may be noted here that there are 70 iron and manganese mines, but only 17 mines are in operation. On an order of the Supreme Court on May 16, two mines of the SAIl, one mine of the OMC and 11 private sector mines were closed on technical grounds. After the intervention of the State Government, the mines of the SAIl and the OMC again started functioning in June last.
In fact, a majority of the mines were closed on technical grounds by the Steel and Mines Department since 2011 keeping in view the visit of the Shah Commission. Ever since, the mines continue to be closed, seriously affecting production of iron ore. The prolonged closure of the mines has not only hit the revenue but also has directly influenced the economy of thousands of locals and young entrepreneurs.
Besides, the restriction of the State Government has not only discouraged the mines owners, but also put the local industries in raw material crisis. According to law, the mines owners have to sell 50 per cent of their production in outside State and 50 per cent inside the State. That is why, sometimes, the local industries face problem in getting the sufficient raw materials. Ultimately, many sponge iron units have already shut down their units and many more are on the verge of a shutdown. If this situation continues, then not only thousands of mines workers but many working in various industries will lose their livelihood.
Interestingly, on his debut visit to the steel city as Mines Minister on July 5 last, Prafulla Kumar Mallick was apprised of the problems faced by the local mining office and mining industries during his review of the functioning of the Mining Department. The Minister had assured that a meeting would be held at Bhubaneswar soon where officials of various stakeholder departments would be present to resolve the issues. But so far no steps have been taken to resolve the problems.