Chhattisgarh is implementing a focused strategy to boost its mining sector. Mining secretary P Dayanand detailed the plan on Thursday. The state aims to increase revenue and generate employment through several key initiatives.
Tech-Driven and Transparent Approach
The strategy relies on a tighter, technology-enabled regime for mineral resources. Dayanand emphasized the use of transparent e-auctions conducted through MSTC for mineral tenders and sales. He reported a notable rise in state revenue over the past two years.
"In iron ore, we have received record high sale prices and competitive mining rates," Dayanand stated. "This shows the success of our transparent e-auction system."
Central Role of CMDC
The Chhattisgarh Mineral Development Corporation (CMDC), established in 2001, is central to this push. It is currently active in nine minerals: tin, bauxite, iron ore, copper, diamond, manganese, corundum, dolomite and coal. More than 28 types of minerals are found in the state, with blocks prepared and auctioned for exploration and mining.
Tin as a Critical Mineral and Tribal Lifeline
Tin, classified as a critical mineral, has become a key livelihood source for scheduled tribe communities in Bastar. CMDC directly purchases tin ore from tribal miners.
"In the last two years, we have focused on giving correct and timely prices to ST sellers," Dayanand explained.
The purchase rate for tin ore has been raised to ₹1,926 per kilogram. This is roughly three times the earlier level. The increase has sharply boosted tribal incomes and the volumes sold. A dedicated online portal called TIN (Tribal Incentive for Natural Resources) is under development. It will enable real-time digital payments to beneficiaries.
Exploration and Joint Ventures
CMDC is collaborating with MOIL on exploration for manganese and graphite in Balrampur district. Dayanand described the results as "encouraging." The corporation has also signed a memorandum of understanding with Coal India for joint exploration and mining of critical minerals. A joint working committee backs this initiative.
"This is not limited to mining," Dayanand added. "It includes mineral processing, technical cooperation and skill development for youth." He expects the initiative to generate employment and build local capacity.
Current Projects and Revenue Figures
The Aridongri iron ore mine alone earned the state about ₹28.65 crore in revenue last year. CMDC posted a net profit of nearly ₹24 crore from this mine. It supports over 200 direct and indirect jobs. A plan exists to raise its capacity from five lakh tonnes per year to 20 lakh tonnes.
Bailadila Iron Ore Projects
A CMDC–NMDC joint venture named NCL is set to start mining at Bailadila deposits 4 and 13. Production is expected in 2026 after finalizing the raising contractor for deposit 4. At peak capacity, these two projects could generate around ₹7,000 crore in revenue for the state and ₹3,000 crore for CMDC.
This development follows past massive protests by local tribal groups in Dantewada against proposed mining on the Bailadila hills.
Diamond and Coal Prospects
Reconnaissance in Mahasamund district’s Baloda–Belmundi area has shown indications of diamond-bearing kimberlite. Drilling is underway to confirm reserves.
Regarding the long-pending Kerwa coal block, Dayanand said a Mine Developer and Operator (MDO) has been selected through transparent bidding at a 15.85% premium. The block is jointly allotted to MPSMC and CMDC. At optimal output, it is expected to yield around ₹150 crore to the state and ₹53 crore to the two corporations annually.
Future Roadmap and Expansion Plans
Dayanand outlined several future plans for CMDC:
- Raise iron ore capacity to 20 lakh metric tonnes. This could bring about ₹250 crore to the state and ₹768.4 crore to CMDC.
- Increase bauxite output, adding an estimated ₹10 crore to CMDC’s revenue.
- Auction lapsed tin mines and begin fresh mining in 2–3 years.
- Launch a pilot project to extract critical minerals like tantalum and niobium from tin slag.
- Expand dolomite mining to a 2-million-tonne capacity over three years. This could potentially earn ₹20 crore for CMDC and ₹32 crore for the state.
The secretary's briefing presented a comprehensive vision. Chhattisgarh is leveraging its mineral wealth with a clear focus on technology, transparency and tribal welfare to drive economic growth.
