Mining: Odisha’s Economic Backbone
Mining remains one of the most critical pillars of Odisha’s economy, contributing heavily to the state’s revenue. From iron ore to coal, mineral royalties fund development projects, social welfare, and infrastructure in the state. This reliance on mining makes fluctuations in collections a key concern for policymakers.
Current Year Collections and Projections
According to Steel and Mines Minister Bibhuti Bhusan Jena, Odisha collected ₹17,132.68 crore in mining revenue during the first five months of the current financial year, up to August 31, 2025. Based on current trends, the state expects to reach nearly ₹42,000 crore by year-end.
The figure so far accounts for around 40% of the annual target, leaving 60% to be mobilized in the remaining seven months. While achievable, this underlines the pressure on the state to maintain production and timely royalty collections.
Revenue Trends Over the Years
Mining revenue has shown sharp swings over the past four years. Odisha earned ₹42,065.99 crore in 2024–25, down from ₹46,396.50 crore in 2023–24. Earlier, collections were ₹38,075.04 crore in 2022–23, while 2021–22 marked a peak with ₹49,859.12 crore.
So far, this fiscal, the state’s revenue is 15.63% lower than 2021–22, but 10.48% higher than 2022–23. Compared to last year, however, it still shows a 9.33% decline, reflecting the cyclical nature of the sector.
Coal Royalty: A Mixed Picture
Coal remains a significant revenue stream. By August 2025, Odisha earned ₹1,884.92 crore in coal royalties. Collections had steadily risen over the years—₹1,786.87 crore in 2020–21 to ₹4,821.57 crore in 2023–24—before dipping slightly to ₹4,673.60 crore in 2024–25.
On the question of royalty revisions, the minister clarified that the central government decides rates under the Mines and Minerals (Development and Regulation) Act, 1957, usually reviewing them every three years. As no new notification has been issued, Odisha will continue with existing rates for now.
Balancing Growth and Stability
Odisha’s mining-driven revenues highlight both opportunity and risk. While the state is on track to collect nearly ₹42,000 crore this year, dependence on royalties—particularly from coal and iron ore—exposes it to global demand swings, commodity price shifts, and policy delays.
For long-term fiscal stability, experts argue the government must not only push for timely collections but also diversify revenue sources, strengthen environmental safeguards, and encourage sustainable mining practices. Odisha’s challenge will be to strike the right balance between economic growth and responsible resource management.
(With agency inputs)
