Home / News / India /  Mining cos should forge ties to achieve economies of scale: Odisha minister

New Delhi: Mining companies should look at forging strategic alliances to optimize risk-reward equations and achieve economies of scale, Odisha steel and mines and works minister Prafulla Kumar Mallick, said on Friday.

Addressing the Odisha Minerals and Metals Industry Conference organized by Assocham, the minister said the government is taking major steps towards modernization of its mining and metals industry and to enhance and optimize logistics configuration between mines, plants, railways and ports.

Mallik added that mining and metal industry has a significant multiplier effect in the economy. “It also contributes to employment generation, foreign exchange earnings, freight earned by railways and the earnings on export and import cargo handled by ports and tax revenue."

He said that the mining sector contributes about 8.98% of the real GSDP of Odisha. “To optimize risk-reward equations and achieve economies of scale, mining companies should forge alliances with infrastructure players, technology and equipment suppliers and financiers (including infrastructure financing) in innovative ways, including the PPP model."

Deoranjan Kumar Singh,principal secretary, Department of Steel & Mines, Government of Odisha said that mining is getting organized and fragmentation is going away. “Bigger blocks for mining not only fetch higher revenue but they are also more efficient. A committee has been constituted to amalgamate blocks which are co-terminus and do not have a natural boundary. More than 40 blocks have already been amalgamated and put for auction. About 300 million blocks that are there in the state will be re-organized to less than 100 blocks. This will pave the way for increased efficiency in the mining industry."

ABOUT THE AUTHOR

Swati Luthra

Swati Luthra writes on climate change, water, environment and forest issues for Mint. A graduate in Psychology, Swati has been mapping India’s policy initiatives to help meet the pledges made at CoP-26 including achieving net-zero carbon emissions by 2070.
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