The Odisha government has proposed a budget of ₹404.39 crore for the Steel and Mines Department for the fiscal year 2025-26. Steel and Mines Minister Bibhuti Bhusan Jena presented the budget proposal in the Odisha State Assembly, highlighting the department’s critical role in boosting the state’s economy through mining revenue and industrial development.
💰 Breakdown of Budget Allocation
The proposed budget includes both planned and administrative expenditures:
- ₹305.06 crore – Planned expenditure for infrastructure, technological upgrades, and mining development.
- ₹99.33 crore – Administrative expenses for staff, operational costs, and regulatory oversight.
🌄 Revenue Collection from Mining
Mining remains a primary revenue source for Odisha, contributing significantly to the state’s financial health. The revenue collection from mining has shown a consistent upward trend:
| Year | Revenue Collected (₹ Crore) |
|---|---|
| 2023-24 | ₹46,500 crore |
| 2024-25 (as of March 20, 2025) | ₹39,500 crore |
The revenue generated from mineral resources strengthens Odisha’s ability to fund infrastructure and welfare projects.
🏆 Odisha’s Leading Position in the Mineral Sector
Odisha holds a dominant position in India’s mineral reserves, significantly contributing to the national mineral output:
| Mineral | Odisha’s Share in India’s Reserves |
|---|---|
| Iron Ore | 33% |
| Bauxite | 41% |
| Chromite | 95.7% |
| Coal | 24% |
| Manganese | 43% |
| Nickel | 92% |
Odisha remains the largest producer of chromite, bauxite, and iron ore while also playing a key role in the production of coal and manganese. This dominance positions Odisha as a strategic player in India’s mineral economy.
🏢 Key Functions of the Steel and Mines Department
The Steel and Mines Department oversees the exploration, extraction, and regulation of mineral resources in Odisha. It operates through key administrative bodies:
- ✅ Directorate of Mines – Regulates and administers mining activities in the state.
- ✅ Directorate of Geology – Conducts geological surveys and mineral exploration.
- ✅ Directorate of Steel – Facilitates the growth and development of the steel industry.
- ✅ Odisha Mining Corporation (OMC) – Engages in the production, marketing, and distribution of minerals.
🌍 Technological Advancements for Transparency
To curb illegal mining activities and ensure transparent mineral management, the Odisha government has introduced several technological measures:
- 🚀 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 enhance the efficiency and transparency of mineral management.
- 🚀 Drone Surveillance and DGPS Mapping: Enables real-time monitoring of mining activities.
- 🚀 e-Tendering for Mineral Transport: Ensures transparency and fairness in mineral transportation contracts.
🏭 Industrial Expansion in Odisha
Odisha has emerged as a major hub for steel production, with a rapidly growing industrial base:
- 35 MoU-based steel plants
- 19 non-MoU steel plants
- 54 operational steel industries – 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
- 16 iron ore beneficiation plants
📜 Long-Term Linkage (LTL) Policy
To support local industries, the Odisha government has introduced the Long-Term Linkage (LTL) Policy. This policy ensures that local industries receive a steady supply of minerals, thereby encouraging industrial growth and employment generation.
🚀 Strategic Vision for Odisha’s Mineral Economy
The proposed budget reflects the Odisha government’s strategic focus on strengthening the mining and steel sectors as key drivers of economic growth. With rising mineral revenue, enhanced transparency through technological interventions, and targeted industrial expansion, Odisha is poised to maintain its leadership in India’s mineral and steel sectors.
👉 Stay updated with Odisha’s latest economic and industrial developments on Objective IAS.