Mining operations in Odisha to continue despite lockdown over Covid-19 outbreak

BHUBANESWAR: Mining activities and its transportation in Odisha will continue despite the countrywide 21-day lockdown to contain Covid-19 as the state government has excluded operation of mines and production, supply, distribution of coal, power and steel from the restrictions listing these activities as essential services.
The mineral production, however, has been reduced by around 60 percent because of the fall in number of workers in the mining areas.
Operation of mines of iron ore, coking coal (used in steel plant) thermal coal (used in power plant), limestone, dolomite, manganese, chromite as well as operations of ferroalloys and iron ore pellet plants which are supply critical raw materials for steel making has been excluded from the restrictions enforced during the lockdown, said an official order, a copy of which is with TOI.
The mining sector including coal mining is not only helps the state government to earn a significant amount of royalty for the state exchequer but also cater to the raw material need of industries and thermal power plants across the country.
“Since the state government has allowed operation of mining activities during the lockdown, the production, dispatch and supply of raw material is going on. Instructions have been given to the concerned concerned authorities to ensure that the lessees adhere to social distancing guidelines issued by the state government to check spread of Covid-19,” director of mines Deepak Mohanty told TOI.
Official sources said the lessees have been directed to avoid public gatherings inside the lease hold areas and also at the transportation point and check gates. The lessees have also been directed to maintain good sanitary facilities and educate their workers on dos and don’ts in view of Covid-19 pandemic.
Keonjhar, Sundargarh, Angul, Jajpur, Koraput, Jharsuguda, Dhenkanal and Mayurbhanj are the eight districts with maximum mining activities while a large number of local people are engaged in the mining fields and other allied activities like loading and transportation.
Mining industry sources said they have been operating mines with minimum manpower and also to meet the minimum requirement of industries.
“Even as the state government has allowed to continue mining operations, most of the lessees have scaled down productions. Only mechanised operations are on with engagement of minimum workforce while the local villagers who are engaged in mining fields for activities like picking and grading of minerals have been asked not to visit to the mining fields,” Prabodh Mohanty, secretary, Eastern Zone Mining Association told TOI.
Number of workers has also been reduced in transportation and dispatch of minerals, said Mohanty.
Besides catering to the raw material need of state-based Industries, minerals including coal from Odisha are also being supplied to other steel & thermal power plants in different parts of the country. Odisha also exports ores to foreign countries through ports.
With mining sector a major source of revenue for the state government, fall in production and dispatch due to the lockdown amid Covid scare is also expected to impact the revenue generation of the state.
“If production will fall, it will obviously hamper the revenue base of the state in the next fiscal year starting April 1. We hope things will get normal very soon,” said a senior government official.
Against the total collection of Rs 10,400 crore from the mining sector in the previous 2018-19 financial year, the state government has so far generated around Rs 10,300 crore by March third week of the current 2019-20 financial year, said official figure in the state steel and mines department.