Odisha’s Growing Iron Ore Trade with China
Over the past three years, Odisha has significantly increased its iron ore exports to China, generating substantial revenue for the state. According to Steel and Mines Minister Bibhuti Bhusan Jena, Odisha exported 418.79 lakh tonnes of iron ore between the 2022-23 financial year and March 10, 2025, earning a total revenue of ₹2,418.85 crore. The state’s mineral-rich landscape has long been a key player in India’s mining industry, and this latest report underscores its economic importance.
This trend is reminiscent of past mineral export booms in India, such as Karnataka’s and Chhattisgarh’s iron ore exports, which saw similar surges in demand from China, a dominant player in the global steel industry.
Breakdown of Revenue from Iron Ore Exports
The revenue earned from Odisha’s iron ore exports to China has shown a significant upward trend:
· 2022-23: ₹312.05 crore
· 2023-24: ₹1,086.96 crore
· 2024-25 (as of March 10): ₹1,019.80 crore
This remarkable increase highlights the rising demand for iron ore in China and Odisha’s growing role as a supplier.
Crackdown on Illegal Mining of Minor Minerals
Alongside its booming legal mining sector, Odisha has been actively cracking down on illegal mining activities. The government has collected a penalty of ₹40.73 crore in its enforcement drive against illegal mining of minor minerals between April 2024 and February 2025.
During this period, 3,123 raids were conducted across the state, with Bhadrak Mining Circle recording the highest recovery of ₹5.96 crore, followed by Cuttack Mining Circle with ₹3.87 crore.
Action Against Illegal Sand Transportation
In a separate enforcement effort, the government collected ₹10.13 crore in penalties during the 2023-24 fiscal year to curb illegal sand transportation.
Cuttack district led in penalty collections with ₹1.34 crore.
Jajpur district followed closely with ₹1.16 crore.
Authorities imposed these fines to prevent fraudulent transportation of minerals using fake transit passes, a longstanding issue in the sector.
Government’s Measures to Regulate Mining Activities
To ensure legal compliance and prevent unauthorized mining, the Odisha government has implemented the following measures:
· Close Surveillance: CCTV cameras and information boards have been installed at mining sites to monitor activities.
· e-Transit Pass System: A single-trip, time-bound e-Transit Pass system has been introduced to enhance transparency and track transportation movements.
· Strict Penalties: Heavy fines are imposed on those using fake e-Transit Passes, in line with National Green Tribunal (NGT) guidelines.
· Regulated Transportation Hours: Following an Orissa High Court directive, sand transportation is now permitted only between 9 PM and 7 AM.
· Regulatory Committees: District-level task forces, sub-divisional committees, and tehsil-level committees have been established to oversee mining operations and curb illegal excavation.
Economic Growth with Regulatory Challenges
Odisha’s iron ore exports to China have witnessed a substantial surge, significantly boosting state revenue. However, alongside legal mining activities, the state continues to grapple with illegal mineral extraction. The government’s proactive enforcement measures, including penalties and regulatory frameworks, demonstrate its commitment to balancing economic growth with resource sustainability. Moving forward, Odisha’s mining policies will play a crucial role in shaping its economic landscape while ensuring environmental and legal compliance.
(With inputs from agencies)
