Jharkhand Mining Royalties to Reach Rs 19,300 Crore in FY 25

Ranchi, Feb 28 (PTI) Projecting robust mining growth to be a key driver of the state's economic development, Jharkhand Economic Survey on Friday estimated mining royalties will fetch Rs 19,300 crore in the ongoing fiscal.

The total value of mineral production in Jharkhand as of March 2024 stood at approximately Rs 75,358 crore, underscoring the state's rich reserves of coal, iron ore, and bauxite, it said.

As a state endowed with approximately 40 per cent of India's total mineral resources, Jharkhand holds significant reserves of coal, iron ore, copper, and uranium, making it a pivotal contributor to the nation's mineral production.

"In the fiscal year 2024-25, Jharkhand's mining sector has continued to demonstrate robust growth, solidifying its role as a key driver of the state's economic development. The sector's contribution to the state's non-tax revenue continues to grow, with mining royalties projected to generate 19,300 crore for FY 2024-25, reflecting a 20 per cent increase compared to the revised estimates from the previous fiscal year," the survey tabled in the Assembly by Jharkhand Finance minister Radhakrishna Kishore said.

However, despite Jharkhand's vast mineral wealth, the mining sector directly employs only around 20,000 workers, indicating the need to operationalise inactive mines to expand job opportunities and fully leverage the state's resource potential, it said.

The mining sector plays a crucial role not only in revenue generation but also in ensuring the state's industrial growth and employment.

"To further optimise revenue and improve the efficiency of mining operations, Jharkhand is actively studying the successful mining models of states like Odisha," the survey said.

It said NTPC mining has reported remarkable coal production, exceeding 19 million tonne (MT) in the first half of FY 2024-25, reflecting a 20 per cent year-over-year growth.

This significant output has strengthened the energy sector by ensuring fuel security for thermal power plants across the country, further reinforcing Jharkhand's position as a leading coal-producing state.

The survey said that in line with its commitment to sustainable development, the Department of Mines and Geology has emphasised the importance of value addition, local processing, and promoting downstream industries to generate employment and boost local economies.

The government is prioritising the development of infrastructure, exploration activities, and investor-friendly initiatives to unlock the full potential of the industrial sector, it said.

"Jharkhand's industrial landscape reflects a compelling growth, resilience, and transformative potential narrative. As one of India's most resource-abundant states, Jharkhand continues to leverage its rich deposits of coal, iron ore, and other minerals to drive economic expansion and foster industrialisation. The state's concerted efforts through strategic policy interventions, infrastructural development, and targeted incentives have paved the way for sustained growth across key mining, steel, cement, and energy sectors," it added.

The survey claimed that with continued focus on infrastructure, policy reforms, and innovation, Jharkhand is poised to chart a path of robust industrial growth, ultimately contributing to enhanced economic prosperity and the well-being of its people.