Joda mining revenue fails to achieve its target of INR 3,000 crore on fall in Iron ore prices.
As expected, the mining revenue of the Joda Mining Circle has witnessed a fall of 16% to INR 2,505 crore in the just concluded financial year i.e. FY14 against the target of INR 3,000 crore. The decline in revenue is due to Iron ore price correction in the international market.
Commenting on this, Mr. Salil Kumar Behera, Mining Officer of Joda Mining Circle said that several factors are responsible for fall in revenue. However, it is mainly due to decline in Iron ore offers in the global market. He also attributed several other reasons for the drop in royalty collection such as out of 101 mines in the circle, only 27 are in operation and dual transportation of mineral by road & railways.
The state government collects 10% royalty on the sale price of Iron ore and a fall in ore prices results drop in royalty collection.