Jharkhand is one of the most mineral-rich states in India, with a lot of untapped resources. The state has 4541 mines. However, 3804 of these mines are closed and only 737 are operational in the State. The current revenue of the State is only Rs. 10,500 Crore annually, while Odisha’s mining sector contributing nearly Rs. 50,000 as annual revenue to Odisha. If all these closed mines of Jharkhand are reopened, the state will earn an annual revenue of Rs. 60000 Crores and nearly 10 lakh jobs will be created.
Only West Singhbhum can generate revenue of Rs. 4000 Crores
In districts like West Singhbhum, where the state holds significant iron ore and limestone deposits, only 8 of the 79 mines are functional. The rest remain closed, contributing very less to the State’s economic growth. If these mines were to restart operations, the district alone could generate Rs. 4000 to Rs. 5000 Crores as revenue.
Many Coal and Iron Ore Mines are closed due to land acquisition and administrative delay
Jharkhand has abundant coal and iron ore mines. The state has around 50 iron ore mines, but nearly 42 of them are currently not working and are waiting to be auctioned. Similarly, Dhanbad, which is famous for its coal mines, has 150 coal mines in total, but only 50 mines are operational right now. The reasons are legal problems, land acquisition difficulties, and delays in Government processes. These mines could provide huge amounts of revenue and create many job opportunities for the people of Jharkhand.
How Odisha is ahead in mining revenue
Odisha’s mining industry is a perfect example of success when compared to Jharkhand’s underperformance. Over the last 10 years, Odisha has increased its mineral production significantly, from 200 million tons to almost 437 million tons every year. The state now produces around 237 million tons of coal and about 170 million tons of iron ore. The annual revenue of Odisha from mining is around Rs. 50000 per annum. One of the main reasons for Odisha’s success is its clear and supportive policies. The State Government has made sure that mining companies face fewer problems in terms of rules and regulations. They have created a system where companies are encouraged to invest and expand their operations. RS Mahapatra, the former director of Nalco, says that Odisha’s progress is due to the Government’s proactive approach, especially in clearing delays and removing obstacles. This has helped the mining industry grow.
If Jharkhand wants to be as successful as Odisha in the mining sector, it needs to fix the problems affecting its own industry. These include solving land disputes, speeding up the process of auctioning mines that are not being used, and removing delays in the government system. Jharkhand could also improve by creating a more business-friendly environment that attracts both private and public investments in the mining sector.
