Bhubaneswar, March 25: The state's revenue from the mining sector has increased over the years despite the closure of mines and at least four major companies pulling out from Odisha.

Steel and mines minister Prafulla Mallick said: "We have managed to get more revenue from the mining sector because of consistent effort over the years. Sometimes, we put higher targets to put pressure on the mechanism to give their best."

Sources in the steel and mines department said they had earned Rs 2,020.72 crore in 2009-2010.

However, the revenue collection leapfrogged to Rs 3,330.47 crore in 2010-11, Rs 4,586.65 crore in 2011-12, Rs 5,679.35 crore in 2012-13, Rs 5,519.58 crore in 2014-15 and Rs 5,797.79 crore in 2015-16.

The state government received a setback in 2014 when the Supreme Court ordered closure of 56 mines in the state due to the non-renewal of years-old leases. These closed mines accounted for about half of the state's output of more than 70 million tonnes of minerals.

Though the court had asked the state government to take a call on the renewal of leases within six months, the state had then allowed eight mines belonging to Steel Authority of India Limited, Odisha Mining Corporation and Tate Steel Limited to resume operations.

Mallick added: "To increase revenue from the mining sector, the state government has started auctioning the mines. But many mines are not operating because of lack of different statutory clearances, such as environment clearance. Steps are being taken to obtain the required statutory clearances for operationalising the mines."

"To enhance the revenue from the mining sector under the Mines and Minerals (Development and Regulation) Act, 2015, the state government started auctioning the mines. So far, three mines have been auctioned."

The amended Mines and Minerals (Development and Regulation) Act, 2015, stipulated that all mining licences for major minerals be granted through auctions.

Mallick said once the auction process was complete, companies would resume operations and set up the plants following the agreements they had inked with the state government.

So far, the state government has inked agreements with 49 companies in the steel sector. However, four companies have withdrawn their projects from the state. These companies are ArcellorMittal, Maharastra Seamless, Sterlite Iron and Steel Company and Posco.