Odisha Collects ₹17,132 Crore Mining Revenue in Five Months, Expects ₹42,000 Crore by Year-End

Minister informs Assembly about coal royalty trends and future revenue challenges

Bhubaneswar: Odisha has collected mining revenue worth ₹17,132.68 crore in the first five months of the current financial year up to August 31, 2025. Steel and Mines Minister Bibhuti Bhusan Jena informed the Assembly that the total mining revenue is expected to reach nearly ₹42,000 crore by the end of this fiscal year.

Replying to a question in the House, the minister presented comparative data showing fluctuations in mining revenue collection over the past four years. In 2024–25, Odisha earned ₹42,065.99 crore from mining, while in 2023–24, the figure was higher at ₹46,396.50 crore. In 2022–23, revenue stood at ₹38,075.04 crore, and in 2021–22, collections peaked at ₹49,859.12 crore.

The minister explained that current year-to-date revenue reflects a 15.63 percent decline compared to 2021–22, but it shows a 10.48 percent increase over 2022–23. However, it is still 9.33 percent lower than the previous fiscal year of 2023–24.

By August, Odisha has managed to secure nearly 40 percent of its annual mining revenue target, leaving the government with the task of mobilizing the remaining 60 percent in the next seven months.

Minister Jena also shared detailed information about revenue from coal royalty. By August 2025, coal royalty collections stood at ₹1,884.92 crore. He recalled that in 2020–21, Odisha received ₹1,786.87 crore as coal royalty, which more than doubled to ₹3,914.69 crore in 2021–22.

The upward trend continued in subsequent years, with collections rising to ₹4,594.76 crore in 2022–23 and ₹4,821.57 crore in 2023–24. However, in 2024–25, coal royalty declined slightly to ₹4,673.60 crore.

Addressing concerns about whether coal royalty rates would be revised soon, the minister clarified that the central government has not set any specific timeframe for revising royalties.

He pointed out that under Section 9(3) of the Mines and Minerals (Development and Regulation) Act, 1957, the central government determines royalty rates for minerals through gazette notifications. Such notifications are typically issued once every three years. Until a revision is announced, Odisha will continue to receive royalties at the existing rates.

Observers note that while mining continues to be a backbone of Odisha’s economy, fluctuations in revenue underline the sector’s vulnerability to global demand cycles, price variations, and policy delays. The state’s reliance on royalties, particularly from coal and iron ore, makes revenue planning a challenging exercise.

With nearly ₹42,000 crore expected this year, the government will need to ensure timely collections while balancing environmental safeguards and industrial needs. The minister emphasized that prudent planning and diversification of resources remain key to stabilizing revenue in the years ahead.