Next to Joda in Keonjhar district, the Koira mining area of Sundargarh district is 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 again fell short of target.
Sources said the royalty revenue for 2014-15 in Koida stood at Rs760 crore including advance revenue of Rs50 crore. The actual revenue collection of Rs710 crore for 2014-15 fiscal is also short by Rs10 crore (Rs720 crore) of the 2013-14 fiscal. Koira Deputy Director of Mines (DDM) Mihir Kumar Senapaty admitted that there was a fall in the collection of revenue due to certain problems in the mines.
According to an official of Koira DDM office, once upon a time there were 70 iron and manganese mines in the area. But 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 Justice Shah Commission. Only 17 mines were in operation and till mid-May 2014, 10 more mines were made operational.
Again on an order of the Supreme Court on May 16, 2014 basing on the report of CEC (Central Empowerment Committee) 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 2014. But a majority of 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.
However, now a ray of hope has arisen among certain mines owners, ore based firms, transporters as well as the local youths when a State-level Task Force on Mining recently decided to extend mining lease period of 26 mines including 11 in Koira region as per provisions of MMDR (Amendment) Act,. Accordingly, licence validity of captive and non-captive mines will be extended till 2030 and 2020 respectively. Koida, DDM Senapati exuded confidence that reopening of the 11 closed mines would balance the revenue position.
local industrialist BS Agarwal appreciating the Government decision said at least the reopening of the 11 private closed mines may work as oxygen for all stake holders presently. But he said the Government should reconsider its cap on production. He said if the cap is allowed to continue at 13 MTPA in case of Koira region, the private sector iron and steel industries would face shortage of ore as the expanded Rourkela Steel Plant (RSP) with 4.5 MTPA steel production capacity would alone corner about nine MTPA of Koira’s iron ores. Hence, the private sector iron and steel industries in the district continue to be in dire straits amid continuing shortage of iron ores.