Koida Mining Circle revenue on recovery path

ROURKELA: After an initial setback to its revenue collection due to Covid-19 pandemic, the Koida Mining Circle (KMC) in Sundargarh district is on path to recovery with gradual increase in mining operations. During the April-August period of 2020-21 financial year, the KMC has ended up with a revenue collection of around Rs  600 crore. Due to the pandemic, the revenue collection in the mining circle had contracted to mere Rs  120 crore in April and May. Sources said if the current trend continues in the remaining seven months, KMC may end up performing much better than expected. 

Koida-based deputy director of mines LD Nayak said revenue collection during April and May was dismal but there was a gradual improvement. By end of August, around Rs  600 crore could be collected in five months. “The increased royalty was due to rise in demand for iron ores by industries and I hope in coming months, dispatch would further improve,” he said. 

Nayak further pointed out that due to the pandemic, no revenue target was fixed by KMC this year. But by end of the year, total collection may be over Rs  1,200 crore. As an essential activity, mining was allowed from third week of April but the mineral demand was limited with partial operation of industries due to Covid-19 restrictions. Usually mining operation drastically slows down during monsoon but KMC witnessed a gradual improvement from June which was further bolstered in July and August, sources said. 

Incidentally in 2018-19, the revenue collection was around Rs  1,700 crore and in 2019-20, it was little over Rs  1,700 crore. In the first three months of 2019-20, the KMC had reported revenue of around Rs  700 crore which was higher than this year’s corresponding period of Rs  600 crore.  Nayak said 30 mines are operating now. Of the eight mines closed due to expiry of lease, five have been auctioned but are yet to operate.