Mining slowdown hits Palamu revenue prospects
Daltonganj, March 11: A slowdown in mining activities across key sectors is affecting revenue prospects in drought-prone Palamu district, where earnings…
Daltonganj, March 11: A slowdown in mining activities across key sectors is affecting revenue prospects in drought-prone Palamu district, where earnings for the state largely depend on the extraction of sand, clay, coal and stone, along with excise collections.
Officials say the district’s revenue structure is heavily tied to mining. When operations stall or fail to take off—as seen in sand mining and parts of the coal sector—the shortfall in state revenue becomes inevitable.
Sand Mining Yet to Take Off
Sand mining, considered one of the largest potential revenue generators, has remained largely inactive this financial year.
Palamu has nineteen sand ghats, but repeated attempts to auction them to private bidders have yielded little success.
District Mining Officer Sunil Kumar said the administration made several attempts to conduct bidding during the current financial year. However, except for one ghat, no bidders qualified for the remaining sites.
Officials believe that if these sand ghats had been successfully auctioned, they could have generated substantial income for the state exchequer.
Coal Sector Also Slowing
Coal mining, traditionally the biggest contributor to Palamu’s mining revenue, is also facing a slowdown.
The Rajhara colliery of Central Coalfields Limited (CCL) was recently declared open by Union Minister Satish Chandra Dubey, but production has not yet begun as work to remove the overburden covering the coal seams is still underway.
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Adding to the challenge, a coal company operating in the district has surrendered its mining operations, leading to a sharp drop in royalty income. Officials recalled that the company once contributed hundreds of crores annually in royalties when operations were at their peak.
Brick Kilns and Clay Mining
Clay mining for brick kilns is another source of revenue, but the sector faces compliance issues.
Palamu has around two hundred brick kilns, many of which operate without meeting mandatory requirements of the State Pollution Control Board.
Officials say brick kilns that comply with environmental norms pay royalty, but most operate in violation of regulations. As a result, authorities often impose penalties instead of collecting royalty, which has become a significant though irregular source of revenue.
Stone Quarries Face Environmental Restrictions
Stone quarrying is another contributor to Palamu’s mining income, but the sector too faces obstacles.
The district has several operational stone quarries, while many others remain inactive. According to officials, a number of quarries fall within restricted zones close to forest areas and have been denied consent to operate by the State Pollution Control Board, limiting their ability to generate revenue.
Administration Pushes for Revenue Collection
With the financial year nearing its end, the district administration has intensified efforts to improve revenue collection.
Deputy Commissioner Sameera S recently chaired a review meeting with officials from departments such as mining, transport and excise, directing them to accelerate enforcement drives and ensure that annual revenue targets are achieved before the end of the financial year.
For Palamu, the revival of mining activity—particularly in sand, coal and stone sectors—remains critical if the district is to improve its revenue performance.
