The success of Odisha can be attributed to efficient governance and forward-looking policies that have made the state a powerhouse in terms of the manufacturing of metals like iron, steel, aluminium and cement in India. It is a great achievement for the country’s extractive industries as 101 blocks that were auctioned off have already come into play throughout the country. For the government, it is one of the biggest achievements as far as its efforts to implement a more open and competitive system of resource allocation are concerned. In this regard, it can be said that it is indeed the maturing of the reforms that were initiated back in 2015, where there was an unparalleled coordination between central and state governments in achieving industrial self-sufficiency.
Since the transition to a mandatory auction regime nearly a decade ago, the landscape of Indian mining has been transformed. The shift towards transparent processes has yielded positive results and the state of Odisha is clearly leading the pack with a whopping 34 out of the 101 functional blocks.
Odisha may be leading the pack but there is progress all across the country. Karnataka has got 18 blocks into operation, while Gujarat and Madhya Pradesh follow with 11 and 10 operational blocks respectively. States like Rajasthan, Goa, Chhattisgarh and Andhra Pradesh have made steady progress. It must be noted that the state of Assam was able to set up its block within nine months of sending the Letter of Intent, which reflects a highly efficient bureaucracy.
Just as important to the economy of the country is the diversity of the mineral resources that are currently being mined. Iron ore leads the pack in terms of blocks with 47 blocks of mines being operational, serving as an essential lifeline to the local steel industry. Limestone, an essential resource for both construction and cement industries, comes second with 29 blocks of mines being operational. The presence of bauxite, manganese, and chromite among the operational mineral resources ensures that the country no longer depends on expensive imports.
One of the reasons cited by the Ministry of Mines behind such success is its “hands-on” style of coordination with state officials. Through constant tracking of progress and assisting with overcoming the many statutory clearances and environmental restrictions, the Ministry has been able to reduce considerably the time taken from winning an auction to actual production of resources. This is considered crucial in guaranteeing the security of resources and building a stronger domestic economy.
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