Mining and metallurgical downstream activities in Jharkhand account for more than 11% of the Gross State Domestic Product (GSDP), according to a survey.
"In percentage terms, contribution of mining and quarrying to the state''s GSDP varied between 14.31% in 2000-01 and 11.35% in 2008-09," states the Jharkhand Economic Survey 2010-11.
Mining and quarrying contributed Rs 8,591.8 crore to the GSDP at factor cost and current prices during 2008-09, it added.
The survey further states, "It (mining and metallurgical activities) contributes over Rs 8 billion per annum or about 15% of Jharkhand''s total fiscal receipts, second only to sales tax."
Royalty collections from mineral extraction in the state, the report says, have steadily increased from Rs 765.7 crore in 2002-03 to Rs 1,730.3 crore in 2009-10.
"The state has set a target royalty collection of Rs 2,086 crore for 2010-11 and collection stands at Rs 1,281.6 crore as on December 10, 2010," it said.
As on December 20, 2010, a total of 11,416 instances were recorded in the state, where royalty payments of about Rs 258.5 crore were due to the government. Out of these, a total of 154 cases have been fully settled, while another 245 have been partially settled and royalty dues of Rs 4.96 crore have been realised.
The value of mineral production in the state during 2008-09 was Rs 9,443 crore, which has decreased by about two per cent compared to the previous year.
The survey states that Jharkhand stands at fourth position in the country in terms of mining activities and accounted for 7.73% of the total value of mineral production during 2008-09 fiscal.
Production of coal, which contributes 87.37% to the total value of minerals produced in the state, increased by 6.34%, while output of iron ore, copper concentrate, manganese ore, bauxite and quartz registered an increase of 2.2%, 636%, 33%, 27% and 19%, respectively, during 2008-09 vis-a-vis the previous year.
However, the output of limestone, laterite, gold and fireclay declined by 18%, 33%, 32% and 36%, respectively, owing to disruptions by Naxal outfits and low market demand, added the survey.