Bhubaneswar: The Odisha government has strengthened its monitoring of iron ore grade assessments following allegations that some mining companies underreported ore quality to reduce royalty payments. The move is aimed at improving transparency, protecting state revenue, and ensuring strict compliance with mining regulations.
According to officials, the state has directed mining authorities to intensify sampling, testing, and verification of iron ore grades at mines and dispatch points. Enhanced inspections and independent laboratory testing are expected to help detect discrepancies between declared and actual ore quality.
Royalty on iron ore in India is calculated as a percentage of the average sale price, which varies according to the grade of the mineral. Any deliberate understatement of ore grade can result in lower royalty payments, potentially causing significant revenue losses to the state exchequer.
Odisha, India’s largest producer of iron ore, relies heavily on mining revenues to support infrastructure development and welfare programmes. The state government has indicated that stricter oversight will ensure that mining companies accurately report ore grades and comply with existing laws.
Mining industry representatives have said they support transparent and science-based testing procedures but have urged authorities to maintain consistency and avoid delays in ore dispatches that could disrupt steel production and exports.
The latest measures reflect Odisha’s broader efforts to strengthen governance in the mining sector through greater use of technology, digital monitoring, and enhanced regulatory oversight. Officials said action would be taken against any operator found violating royalty or mineral reporting norms, while reaffirming the state’s commitment to responsible and sustainable mining practices.