BHUBANESWAR | Aug 07, 2016: : The state government on Saturday asked the Odisha Mining Corporation (OMC) to boost ore production. The move assumes significance as revenue collection from the mining sector has dipped significantly in the first quarter of the current fiscal. Besides, a number of sponge iron and steel plants without a captive block, depend on OMC for raw material.

According to sources, due to lack of adequate expertise, manpower, equipment and statutory clearances, only six of the 35 mining blocks of the OMC are in an operational stage.

The mineral blocks which are operational are four iron ore blocks - Kurmitar (Sundargarh), Gandhamardhan-B and Roida Keonjhar, Daitari (Keonjhar/Jajpur) and two chromite blocks - South Kaliapani and Sukrangi both in Jajpur district.

"We have set a target to produce 8.64 million tonne of ore in 2016-17 fiscal. By July-end, the production of ore by the state PSU is pegged at 2.45 million tonne. We were asked to scale up production from the operational blocks and to obtain statutory clearances for other blocks," said R Vineel Krishna, managing director, Odisha Mining Corporation.

The year-wise ore production of the state PSU in recent years was 2.4 million tonne (2013-14), 3.9 million tonne (2014-15) and 6.55 million tonne (2015-16).

According to sources, the OMC is planning to engage private parties having expertise in mineral exploration and production to augment its production.

Revenue collection from mining sector has dipped sharply what came as a setback for the state government that generates lion's share of its revenue from the sector.

During the April-June quarter, revenue collection from mining and metal sector is pegged at around Rs 900 crore against the target of Rs 1,400 crore. The revenue collection from the sector was Rs 967 crore in the corresponding period of the previous fiscal (June, 2015), official sources said.

(Source: http://timesofindia.indiatimes.com/)