The Orissa High Court has granted the state government an extension until January 8 to conduct an inquiry and submit its official stance on a public interest litigation (PIL) that alleges severe under-utilisation of Odisha's iron ore mining capacity. The petition claims this underperformance is resulting in massive financial losses and worsening economic conditions in key mining districts.
Court Grants Time for Detailed Inquiry
During a hearing on Monday, a two-judge bench comprising Chief Justice Harish Tandon and Justice M S Raman took note of a submission by additional government advocate Debashis Tripathy. He argued that an inquiry was necessary to verify the allegations made in the PIL, particularly concerning the Balda and Jururi iron ore blocks. The court had earlier taken cognisance of the PIL, filed by a Bhubaneswar-based NGO, and asked the government to clarify its position.
The bench subsequently posted the matter for the next hearing on January 8 and directed the state government to complete its inquiry and file a detailed affidavit by that date. This development follows the court's earlier observation that the petition raises significant questions about the state's stewardship of its valuable mineral resources.
Alarming Details of Under-Production
The PIL presents a stark picture of underperformance across several iron ore blocks in Odisha. It contends that despite having approved mining plans and necessary environmental clearances, these blocks are operating far below their potential.
A critical example cited is the Balda iron ore block. This block has an approved capacity of 15 Million Tonnes Per Annum (MTPA). While it produced over 10 MTPA before the 2020-21 period, its output plummeted to a mere 6% of its capacity over the last four years. Experts estimate that optimal production of 40 to 56 MT during this period could have generated an additional Rs 3,000 to Rs 4,000 crore in revenues from royalties, District Mineral Foundation (DMF), and National Mineral Exploration Trust (NMET) contributions. This lost revenue could have also supported livelihoods for nearly 5,000 people.
The situation at the Jururi iron ore block is similarly dire. The petition states that in its first year of operation (2020-21), it produced less than 5% of its approved capacity and has continued to underperform in subsequent years.
State-Wide Impact and Revenue Loss
The petition highlights that Odisha, which holds a substantial 28% of India's total iron ore reserves, is not realizing its full mining potential. The state currently has 63 operational iron ore leases with a combined environmental clearance capacity of 246 MTPA. However, the achieved production for 2024-25 was only 159 MTPA.
This translates to a capacity utilisation of just 64% and a production equivalent to a mere 1.6% of the state's total recorded geological resources. The prolonged underproduction, as alleged in the petition, has had a cascading negative effect on public revenue, local employment, and allied sectors such as transport, logistics, and mineral-based industries.
The High Court had previously noted in its order the existence of a "striking imbalance between the production and the optimal use of the natural resources by the lessees." The state government's affidavit, due on January 8, is now keenly awaited to address these serious allegations of economic underperformance in a critical sector.
