*Speech of Ranendra pratap swain in demand discussion on steel and mines department.
Odisha contributes nearly 50% of India’s national mineral wealth, yet the state continues to struggle with extreme poverty, large-scale migration, and unemployment. Odisha’s debt burden has surged to ₹1.40 lakh crore, while mining operators are handed undue profits exceeding ₹2 lakh crore.
It is drying up rivers, destroying ecosystems, and pushing millions into distress. This report examines the revenue loss, policy loopholes. Revenue Loss in Key Minerals Bauxite is the main Current Royalty. Metallurgical Grade Bauxite: 0.6% of the London Metal Exchange (LME) aluminum price, based on aluminum content. Non-Metallurgical Grade Bauxite: 25% of the average sale price (ASP) on a grade basis.
Despite Odisha being the sole producer of metallurgical-grade bauxite and holding the highest reserves, it is taxed at a much lower rate (0.6% of the LME price) compared to non-metallurgical bauxite, which attracts a 25% royalty.
Odisha earns approximately ₹175 per ton from bauxite, while global prices are ₹7,000 per tonne. And imposing a 50% cess on the global price could yield ₹3500 per ton, which is 20 times more than current earn. Odisha loses ₹5,400 crore per year due to this under valuation.
Companies like Vedanta to purchase bauxite at ₹465 per tonne, while the global market rate is ₹6,000 to ₹7,000 per tonne. This results in ₹2,000 crore in annual profits to Vedanta at Odisha’s expense. Odisha produces 240 million tonnes of coal annually but consumes only 20 million tonnes.
Excess coal production leads to environmental destruction, river depletion, and increased heat waves. Odisha sells coal at ₹900 to 3,500 per tonne, while imported coal of the same grade is priced at ₹13,000 per tonne.
Companies like Adani, Vedanta, and Birla acquire coal at significantly lower prices. Company Coal Procurement (Rs/Tonne) Vedanta Rs1674 ADANI Rs2146 Hindalco Rs960 Revenue Potential: West Bengal imposes a 25% cess on coal—Odisha can implement the same and generate ₹70,000 to 1 lakh crore more annually. Similarly with the Iron
Despite clear judicial directives, the state government is intentionally avoiding implementation by citing the ORISED Act 2004, The Odisha government is auctioning mineral blocks during a recession in the metal market, which will lead to severe revenue losses. Instead of auctions, the state should allocate these blocks to Odisha Mining Corporation (OMC) to ensure better revenue generation and control over resources.
The Chief Minister had pledged to act on the Justice Shah Commission report on illegal mining, stating: “Jails ready for those who looted minerals.” However, no concrete action has been taken. The mining syndicate has accumulated huge wealth and now exerts control over Odisha’s political spectrum. ecological damage & ignore of PESA
Unregulated mining and industrial waste disposal have severely affected rivers like Brahmani, Baitarani, Mahanadi, Nagabali, Indravati, and Rushikulya, contributing to environmental degradation and increasing the risk of heat waves. Odisha has not implemented the Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 (PESA), allowing corporate exploitation of land and minerals.
Provide free electricity to farmers and 300 units of free power for households. Introduce free bus rides for women, as done in other states. Enhance the Subhadra Yojana allowance to ₹2,500 per month. Implement unemployment benefits up to ₹3,000 per month. Take steps towards making Odisha a liquor-free state.
Stop mineral auctions till the PESA is fully implemented across the State and transfer mines to OMC for state-controlled resource management. Odisha’s wealth belongs to its people, not a privileged few. It is time to save Odisha and liberate it from the mining syndicate.
