Iron ore mining in Jharkhand’s West Singhbhum district are nearly 26% of India’s reserves, has been stalled since March 2020 as statutory approvals remained pending. Lease expiries, lack of coordination between departments, and prolonged clearance procedures have left major mines closed, impacting revenue flows and local employment.
Nine Major Iron Ore Mines Awaiting Clearances
The state had reserved the mines for Jharkhand State Mineral Development Corporation (JSMDC), but the Centre opposed the move, insisting on auctions. As a result, nine key iron ore mines, including SAIL’s Jhillingburu, Topailore, Budhaburu, and Tata Steel’s Vijaya II Ghatkuri are closed. Officials said delays in environmental approvals and mining licenses acted as a virtual ban on operations. The district mining officer confirmed that review processes were under way and clearances were expected soon.
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The pending review process is being completed and approval will be granted soon. Compliance with environmental safeguards and mining regulations is essential, which naturally takes time. It is expected that mining operations in the district will resume smoothly in the near future.” — Meghlal Tudu, District Mining Officer, West Singhbhum
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Odisha Surged Ahead, Jharkhand Lost Revenue
While Odisha’s auction-based model has generated annual revenues of over Rs. 50,000 crores, Jharkhand has failed to auction a single mine in five years. The prolonged shutdown has hit thousands of contract workers, small traders, and ancillary businesses in the district. Local unions and business groups warned that continued delays not only risk livelihoods but also stall regional development. Observers said Jharkhand’s inability to resolve policy hurdles is widening the economic gap with neighboring states despite having abundant resources.
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