The Odisha government has put forth a demand budget of Rs 404.39 crore for the Steel and Mines Department for the fiscal year 2025-26.

Odisha Steel & Mines Minister Bibhuti Bhusan Jena made the proposal in the State Assembly on Monday, stating that Rs 305.06 crore would be needed for planned expenditure and Rs 99.33 crore for administrative expenses.

Revenue Collection from Mining

Mining remains a primary revenue source for Odisha, with the Minister noting a consistent upward trend in collections:

2023-24: Rs 46,500 crore collected from mineral revenue.

2024-25 (as of March 20, 2025): Rs 39,500 crore collected.

Key Functions of the Steel and Mines Department

In his address, the minister emphasised that the Steel and Mines Department is a critical pillar of Odisha’s economy, overseeing the exploration, development, extraction, and marketing of mineral resources, with several key units, including:

Directorate of Mines: Responsible for the regulation and administration of mining activities.

Directorate of Geology: Conducts geological surveys and mineral exploration.

Directorate of Steel: Facilitates steel industry development.

Odisha Mining Corporation (OMC): Engages in mineral production, marketing, and distribution.

Odisha’s Dominance in the Mineral Sector

Notably, Odisha holds a prominent position in India’s mineral landscape, with significant contributions to the national reserves:

Iron Ore: 33% of India’s reserves

Bauxite: 41%

Chromite: 95.7%

Coal: 24%

Manganese: 43%

Nickel: 92%

Further, the state is the leading producer of chromite, bauxite, and iron ore while also playing a crucial role in coal and manganese production, significantly contributing to Odisha’s revenue generation and industrial development.

Revenue Collection from Mining

Odisha’s mining sector remains a primary source of revenue for the state government. The revenue collection trends highlight the sector’s financial importance:

2023-24: Rs 46,396.25 crore collected from mineral revenue.

2024-25 (till March 20, 2025): Rs 39,242.45 crore collected.

Technological Advancements for Transparency

To curb illegal mining activities and streamline mineral management, the Odisha government has introduced various technological interventions:

i3MS (Integrated Mines & Minerals Management System): An online system for tracking mineral production and transport.

i4MS (Next-gen Mineral Management System): A planned upgrade to further enhance efficiency.

Drone Surveillance and DGPS Mapping: Ensuring real-time monitoring of mining activities.

e-Tendering for Mineral Transport: Increasing transparency in mineral transportation.

Industrial Expansion in Odisha

Odisha has emerged as a major hub for steel production, hosting a range of operational and upcoming industrial projects:

35 MoU-based steel plants

19 non-MoU steel plants

54 operational steel industries, with a total installed capacity of 41.12 million tonnes, accounting for 22% of India’s total steel capacity.

111 sponge iron plants, 19 pellet plants, 12 ferroalloy plants, and 16 iron ore beneficiation plants.

To support local industries, the government has implemented the Long-Term Linkage (LTL) Policy, prioritizing the supply of minerals to industries within the state.