Meltdown impacts Jharkhand’s iron ore dispatchDecember 5th, 2008 - 4:26 pm ICT by IANS
Ranchi, Dec 5 (IANS) Jharkhand’s iron ore dispatch has fallen in the first six months this fiscal, as compared to the corresponding period last year, thanks to the global meltdown that has impacted demand in the steel sector. In the first six months of the current financial year, the state’s iron ore dispatch was 200,000 tonnes less than the average, resulting in a revenue loss of Rs.5 million in form of royalty and other fees in West Singhbhum district of the state.
Mostly iron ore mines in Jharkhand are situated in West Singhbhum.
“In the first six months of the current financial year, the total revenue collected from royalty and other fees was Rs.23.7 crore (Rs.237 million), which was Rs.24.2 crore during the same period last year,” an official of Mines and Geology department told IANS.
“As a result, the state has suffered a revenue loss of Rs.50 lakh (Rs.5 million) in comparison to last year,” he said, adding: “If the situation persists, then we are unlikely to meet even last year’s revenue target.”
The state has earned revenue of Rs.450 million (Rs.45 crore) during the last financial year from iron ore dispatch, and this year’s target was set at Rs.855 million (Rs.85.5 crore).