Mineral Resources to transform the fate of Chhattisgarh
Chhattisgarh is rich in natural and mineral resources, not only forests of the State are replete with precious herbal and medicinal plants but mineral resources of the State has the potential to transform it as a global economic power.
Chhattisgarh has huge stocks of coal, bauxite, iron ore and 28 types of minerals are found in the State. Existence of high quality kimberlitic pipes (diamond) has been traced in the State. Chhattisgarh ranks second in terms of mineral production in the nation. 23 pc of the iron ore deposits of the nation exists in Chhattisgarh and Chhattisgarh is among three prominent coal producing states of the nation along with Jharkhand and Orissa. Realizing importance of minerals resources in industrialization of a state and nation Dr. Raman Singh's government set the pace for rapid industrialization of Chhattisgarh. The state government has ensured numerous concessions for investors in the New Industrial Policy 2004-09. As per Industrial Entrepreneur Memorandum of the Ministry of Industry, Government of India, Chhattisgarh ranks first in terms of industrial investment in the first seven months i.e January 2006 to July 2006. During this period Rs 37 thousand 715 crores have been invested in the State. Jharkhand ranks second, Gujarat third and Andhra Pradesh fourth in terms of investment.
Investment plays crucial role in industrial development and promotes ancillary activities in the region. Along with mega projects ancillary units and shops come up in the region as a result of which locals gets employment opportunities in industrial units and shops. Flow of money in the market improves socio-economic conditions of the people of the locality. In view of these facts Government of Chhattisgarh took numerous steps for boosting industrial activities in the State. Government has protected interest of local youths and domiciles of Chhattisgarh. As per the New Industrial Policy recruitment of ninety percent unskilled labourers from the State is mandatory.
Chief Minister Dr. Raman Singh has made it clear that mineral resources of the State will be allotted to only those investors who will add value to minerals in the State itself. Main objective of the New Industrial Policy is to generate employment opportunities for local youths and complement in the economic development of the State. In pursuance of its New Industrial Policy, state government signed Memorandum of Understanding with Tata Group for establishing steel plant in Jagdalpur district and with Essar group for steel plant in Dantewada district. Both the groups will invest more than Rs 20 thousand crores in tribal regions of the State. These investments are likely to change socio-economic conditions in tribal regions of Bastar. Both the plants will get iron ore from Bailadila based mines of National Mineral Development Corporation (NMDC). Earlier NMDC used to export iron ore to Japan and Chhattisgarh got royalty at the rate of Rs 18 to Rs 20 per metric tonne, whereas finished goods were sold for Rs 20 to 25 thousand per tonne. Last year state government collected mineral royalty of Rs 25 crores from iron ore dominated district of Dakshin Bastar. State government got royalty of just Rs 24 crore from iron ore mines of Bastar, whereas NMDC booked crores of rupees profit from Bastar. Due to these anomalies Dr. Raman Singh's government took historical decision to form Joint Venture Company comprising National Mineral Development Corporation (NMDC) and Chhattisgarh Mineral Development Corporation (CMDC) for excavation and utilization of NO-13 iron ore deposits of Bailadila mines.
Deposit NO-13 holds 350 million tonnes of iron ore. On the initiative of Chief Minister Dr. Raman Singh for the first time NMDC entered into agreement with state government to form Joint Venture Company. This will not only benefit iron and steel companies of Chhattisgarh and the nation but will also generate employment opportunities for domiciles of the State. As per the agreement NMDC will have 51 pc and CMDC 49 pc equity stake and industries of the State will have first right over the iron ore thereafter iron ore will be allotted to the other states. JVC will also set up iron ore industries in the Bastar region. Rates of iron ore will be determined by Board of Directors of the Joint Venture Company and iron ore rates will not surpass the rates at which NMDC provides ore to its customers. Mining lease of 350 millions tonnes Deposit No-13 will be transferred to J.V.C.
Chhattisgarh is also setting new record in collection of mineral royalty. State government set a new record by collecting mineral revenue of Rs 737.84 crores in the year 2005-06. This is highest since inception of the State. In the financial year 2001-02, state government got royalty of Rs. 458.52 crore, in the year 2002-03 Rs 552.36 crore, in the year 2003-04 Rs 637.17 crore and in the year 2004-05 Rs 694.62 crore. State earned maximum revenue from coal. State earned Rs. 587.50 crore as coal royalty from four coal producing districts of the State-Korba, Sarguja, Koria and Raigarh.
It may be recalled that Mining Department was given target of revenue collection of Rs 706.45 crore whereas department surpassed the target and registered success rate of 104 pc. Rs. 706.66 crore and 74 thousand was collected from coal, iron ore, high quality lime stone, bauxite etc whereas Rs 28.72 crore was collected from secondary minerals such as low quality lime stone, granite, mud etc.
In the financial year 2005-06 Korba stood first in terms of collection of mineral royalty. Against annual target of Rs 380.28 crore Mining Department collected revenues of Rs 387.69 crore. Maximum royalty of Rs 386.25 crore was collected from coal. Coal mines of Korba are under the jurisdiction of South Eastern Coalfield Limited. Coal producing district Koria ranks second in terms of revenue collection. Against annual target of Rs. 100.75 crore, royalty of Rs 103.15 crore was collected. Maximum royalty of Rs 102.48 crore and 77 thousand was collected from SECL.
Sarguja ranks third in terms of mineral royalty. Against target of Rs 61.50 crore Rs 71.39 crore royalty was collected. Maximum royalty of Rs 58.75 crore was collected from coal mines of SECL. Royalty of Rs 56.50 crore was collected from Raipur district. Maximum royalty of Rs 51.11 crore was collected from lime stone. Against target of Rs. 6.25 crore Rs 25.07 crore royalty was collected from iron ore dominated district of Dantewada. Maximum royalty of Rs 23.93 crore was collected from Bailadila based iron ore project of NMDC. Raigarh district surpassed revenue target of Rs 34.88 crore and revenue of Rs 43.44 crore was collected. Maximum royalty of Rs 40 crore was collected as coal royalty. From the entire perspective, it is clear that, mineral resources will play crucial role in transformation of the State.
K.Venkateshwar.Rao
Chhattisgarh has huge stocks of coal, bauxite, iron ore and 28 types of minerals are found in the State. Existence of high quality kimberlitic pipes (diamond) has been traced in the State. Chhattisgarh ranks second in terms of mineral production in the nation. 23 pc of the iron ore deposits of the nation exists in Chhattisgarh and Chhattisgarh is among three prominent coal producing states of the nation along with Jharkhand and Orissa. Realizing importance of minerals resources in industrialization of a state and nation Dr. Raman Singh's government set the pace for rapid industrialization of Chhattisgarh. The state government has ensured numerous concessions for investors in the New Industrial Policy 2004-09. As per Industrial Entrepreneur Memorandum of the Ministry of Industry, Government of India, Chhattisgarh ranks first in terms of industrial investment in the first seven months i.e January 2006 to July 2006. During this period Rs 37 thousand 715 crores have been invested in the State. Jharkhand ranks second, Gujarat third and Andhra Pradesh fourth in terms of investment.
Investment plays crucial role in industrial development and promotes ancillary activities in the region. Along with mega projects ancillary units and shops come up in the region as a result of which locals gets employment opportunities in industrial units and shops. Flow of money in the market improves socio-economic conditions of the people of the locality. In view of these facts Government of Chhattisgarh took numerous steps for boosting industrial activities in the State. Government has protected interest of local youths and domiciles of Chhattisgarh. As per the New Industrial Policy recruitment of ninety percent unskilled labourers from the State is mandatory.
Chief Minister Dr. Raman Singh has made it clear that mineral resources of the State will be allotted to only those investors who will add value to minerals in the State itself. Main objective of the New Industrial Policy is to generate employment opportunities for local youths and complement in the economic development of the State. In pursuance of its New Industrial Policy, state government signed Memorandum of Understanding with Tata Group for establishing steel plant in Jagdalpur district and with Essar group for steel plant in Dantewada district. Both the groups will invest more than Rs 20 thousand crores in tribal regions of the State. These investments are likely to change socio-economic conditions in tribal regions of Bastar. Both the plants will get iron ore from Bailadila based mines of National Mineral Development Corporation (NMDC). Earlier NMDC used to export iron ore to Japan and Chhattisgarh got royalty at the rate of Rs 18 to Rs 20 per metric tonne, whereas finished goods were sold for Rs 20 to 25 thousand per tonne. Last year state government collected mineral royalty of Rs 25 crores from iron ore dominated district of Dakshin Bastar. State government got royalty of just Rs 24 crore from iron ore mines of Bastar, whereas NMDC booked crores of rupees profit from Bastar. Due to these anomalies Dr. Raman Singh's government took historical decision to form Joint Venture Company comprising National Mineral Development Corporation (NMDC) and Chhattisgarh Mineral Development Corporation (CMDC) for excavation and utilization of NO-13 iron ore deposits of Bailadila mines.
Deposit NO-13 holds 350 million tonnes of iron ore. On the initiative of Chief Minister Dr. Raman Singh for the first time NMDC entered into agreement with state government to form Joint Venture Company. This will not only benefit iron and steel companies of Chhattisgarh and the nation but will also generate employment opportunities for domiciles of the State. As per the agreement NMDC will have 51 pc and CMDC 49 pc equity stake and industries of the State will have first right over the iron ore thereafter iron ore will be allotted to the other states. JVC will also set up iron ore industries in the Bastar region. Rates of iron ore will be determined by Board of Directors of the Joint Venture Company and iron ore rates will not surpass the rates at which NMDC provides ore to its customers. Mining lease of 350 millions tonnes Deposit No-13 will be transferred to J.V.C.
Chhattisgarh is also setting new record in collection of mineral royalty. State government set a new record by collecting mineral revenue of Rs 737.84 crores in the year 2005-06. This is highest since inception of the State. In the financial year 2001-02, state government got royalty of Rs. 458.52 crore, in the year 2002-03 Rs 552.36 crore, in the year 2003-04 Rs 637.17 crore and in the year 2004-05 Rs 694.62 crore. State earned maximum revenue from coal. State earned Rs. 587.50 crore as coal royalty from four coal producing districts of the State-Korba, Sarguja, Koria and Raigarh.
It may be recalled that Mining Department was given target of revenue collection of Rs 706.45 crore whereas department surpassed the target and registered success rate of 104 pc. Rs. 706.66 crore and 74 thousand was collected from coal, iron ore, high quality lime stone, bauxite etc whereas Rs 28.72 crore was collected from secondary minerals such as low quality lime stone, granite, mud etc.
In the financial year 2005-06 Korba stood first in terms of collection of mineral royalty. Against annual target of Rs 380.28 crore Mining Department collected revenues of Rs 387.69 crore. Maximum royalty of Rs 386.25 crore was collected from coal. Coal mines of Korba are under the jurisdiction of South Eastern Coalfield Limited. Coal producing district Koria ranks second in terms of revenue collection. Against annual target of Rs. 100.75 crore, royalty of Rs 103.15 crore was collected. Maximum royalty of Rs 102.48 crore and 77 thousand was collected from SECL.
Sarguja ranks third in terms of mineral royalty. Against target of Rs 61.50 crore Rs 71.39 crore royalty was collected. Maximum royalty of Rs 58.75 crore was collected from coal mines of SECL. Royalty of Rs 56.50 crore was collected from Raipur district. Maximum royalty of Rs 51.11 crore was collected from lime stone. Against target of Rs. 6.25 crore Rs 25.07 crore royalty was collected from iron ore dominated district of Dantewada. Maximum royalty of Rs 23.93 crore was collected from Bailadila based iron ore project of NMDC. Raigarh district surpassed revenue target of Rs 34.88 crore and revenue of Rs 43.44 crore was collected. Maximum royalty of Rs 40 crore was collected as coal royalty. From the entire perspective, it is clear that, mineral resources will play crucial role in transformation of the State.
K.Venkateshwar.Rao
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