The Business Bytes
TBB BUREAU
BHUBANESWAR, APRIL 1, 2022
JSW once again emerged as the single highest contributor to the total mining revenue earned by the Odisha Government with close to Rs 18,284 crore contributions in way of premium and other statutory dues during financial year 2021-22 (FY22). The revenue by means of premium and other dues from the auctioned captive mines of JSW Steel, translates to 52.5 percent of the mining revenue of Rs 24,171 crore earned by the state exchequer from auctioned mines.
The company has given returns to the tune of Rs 11,686 crore in the form of bid premium alone to the State Government in FY22. In FY 2020-21, the total mineral revenue contribution from the JSW was Rs 3650 crore, which witnessed a significant jump in FY2021-22.
Speaking of Q4FY22 revenue contribution, JSW, from its captive mines, has extended close to Rs 3517 crore with all statutory dues put together. Notably, for the month of March, its revenue contribution from mines has surpassed Rs 1900 crore.
Mining revenue has contributed 90 percent of the state’s own non-tax revenue as per the recently tabled interim budget. Substantial mining revenue from the auctioned blocks has further strengthened the state’s economy in recent times. JSW particularly has championed the auctioning of mines in Odisha and has firmly upheld the vision of growth for the State and its people.
Production from the auctioned mines of JSW stood at 24.1 MT and the dispatch figure was 21.3 MT for the financial year 2021-22. In contrast, for FY2020-21, production and dispatch were 16.66 MT and 9.67 MT, respectively.
JSW launched mining operations in July 2020 amidst all supply chain disruptions during Covid-19 pandemic and has progressively ramped up production targets month on month to achieve the major milestone of iron-ore dispatch surpassing 1 lakh tonnes on a single day. Once operational with full capacity, these mines are expected to produce around 36 MT per annum.
Odisha has collected over Rs 48,000 crore from mineral based revenue this year, which is inclusive of approximately Rs 971 crore from coal mining. In FY2020-21, the State had collected near about Rs 13,800 crore mineral revenue and there has been a significant jump. The projected mining revenue for the State for current fiscal is Rs 46,000 crore. JSW Group companies’ cumulative contribution at Rs 12,683 crore is 26 percent of the mineral revenue earned by State. JSW would be stepping up production targets to have a solid partnership with the State and has set a robust target of 28 MT production for the current fiscal.
Odisha is among the first few states to come up with a SDG linked budget, which would translate to focused spending in sectors such as public health, education and so on. Owing to gains in mineral revenue, rural development expenditure outlay has witnessed a fillip in the interim budget. And JSW is proud to be associated with this vision of a vibrant Odisha.
