Odisha Loses ₹4,162.79 Crore in Revenue Due to Iron Ore Undervaluation

The Odisha government just dropped staggering figures—turns out, the state lost a whopping ₹4,162.79 crore in revenue because companies undervalued their iron ore. This set off a heated debate in the State Assembly. Steel and Mines Minister Bibhuti Bhushan Jena pointed to the Comptroller and Auditor General’s (CAG) findings covering up to March 2022. Most of this loss happened during 2020-21 and 2021-22, with problems piling up in the Joda-Koida-Jajpur mining belt. There, high-quality minerals were reportedly marked as low-grade, all to dodge royalty payments. Just look at the breakdown: Jajang iron ore mines alone account for ₹2,877.27 crore of the shortfall. Jaribahal lost another ₹703.66 crore, followed by Roida-II at ₹215.27 crore, Gonua at ₹185.15 crore, and Nuagaon at ₹153.79 crore. That’s quite a bit. Minister Jena told the Assembly that the state sent out demands for differential royalties to big players like JSW Steel, Yazdani Steel, and Patnaik Minerals. But up to now? Not a rupee has come back—most companies ran to the courts or got stay orders from the Ministry of Mines Revisional Authority. To fix these gaps, the state is taking strict measures. The Odisha Mineral Rules, 2025, are now in place—a new set of regulations designed to tackle illegal shipments and bogus grade reports. On top of that, Odisha’s rolling out third-party sampling, automated grade analysis, and even AI-powered, real-time tracking of mineral shipments. The goal is clear: stop the leaks and bring some honesty and transparency to the process. Regulatory headaches aside, Odisha isn’t slowing down. Recent numbers from Assocham and ICRA say Odisha is still king when it comes to the mining sector, with the state contributing 14% to India’s mining Gross Value Added in FY2025. Mining remains central to Odisha’s wealth, making up nearly 12.9% of its GSDP. When it comes to specifics, the state is far in the lead. Odisha’s posted a compound annual growth rate of 10.8% in certain minerals for the past decade. It alone delivers more than half—53%—of India’s iron ore, hitting 155 million tonnes, and it pretty much has a lock on chromite production. Even with all the legal and financial problems, rapid mineral block auctions and regular policy changes mean Odisha is still powering India’s mineral-rich eastern economy. They’re not surrendering that title anytime soon.