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Employment generation
Abstract
In this assignment an attempt has been made to show the economic significance of mining sector
in the context of Orissa Economy in terms of value of total extractions, total employment
generation and contribution of mining sector to State Gross Domestic Product and total revenue
generation. India is well endowed in terms of most minerals. The country produces as many as
87 minerals, including 4 fuel minerals, 10 metallic minerals, 47 non-metallic minerals, 3 atomic
minerals and 23 minor minerals. Despite being the highest mineral rich state of the country, the
state was designated as one of the poorest states because benefits of mining had gone to few
hands caused by large scale corruption. In this paper we have explored how the proper
consumption of mineal resource has resulted in change in economic condition of Odisha by
providing necessary employment.
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
BACKGROUND
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
Growth-Potential ?
The Indian market has a huge growth potential in terms of steel consumption.As per the National
steel policy, 2005, the growth in steel sectors has been anticipated to reach 100 million tonnes by
2019-20 from a level of 38 million tonnes in 2004-05. To keep up to this target, the Government
of India is actively encouraging steel consumption so that the steel industry acts as the
locomotive for the overall economic growth of the country. In addition, the country's rich mineral
resources and availability of skilled labor makes it an attractive destination for investment. On
the other hand, India will be able to derive huge benefits in terms of employment generation,
revenues and FDI inflow. In addition, this project will proffer mutual cooperation and amity
between India and Korea.
The POSCO-India project will create enormous opportunities for developing ancillary and downstream industries close to the steel plant. There is a vast scope of indirect employment
opportunity once the ancillary industries are set up in the area.
A mega integrated steel plant such as POSCO, to be built in Orissa, will lead to significant
growth and investment in the country. Owing to the unique nature of the steel industry, which
requires large equipment facilities, the project is envisaged keeping in mind the operations of 30
to 50 years. The project will extensively contribute to the development of India's economy and
society at large.
Apart from mega projects there is ample avenue for growth of existing sponge iron plants &
setting up of smaller ancilliary industries in the state.
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
There have been changes in financial condition due to mining. It is reported that there marginal
income has also increased in every family due to employment.
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
financial requirement of Rs 25 crore for infrastructure like hostels and staff quarters etc," OMC
said in its proposal report to the government.
Table 2.1: Workers in Odisha: 2001 & 2015
Sl. No
1
2
3
4
5
6
7
8
9
10
11
12
Item
Unit
Total Population
lakh
Total Workers
lakh
Total Main Workers
lakh
Total Marginal Workers
lakh
Proportion of total workers to total population
Percent
Main workers to total workers
Percent
Male workers to male population
Percent
Female workers to female population.
Percent
Cultivators to total workers
Percent
Agriculture Laborers to total workers
Percent
Workers engaged in house hold Industry to total workers Percent
Other workers to total workers
Percent
2001
368.05
142.76
95.89
46.87
38.79
67.17
52.5
24.7
29.7
35.0
5.0
30.3
2011
419.74
175.42
107.08
68.34
41.79
61.00
56.11
27.16
23.4
38.4
4.5
33.7
ANALYSIS:
Per capita income is an important indicator of standard of living of the people. The rising trends
of per capita real Net State Domestic Product (NSDP) for Odisha from 2004-05 to 2014-15 at
Market prices at 2004-05 prices are presented in Figure 2.2. The per capita income (real NSDP)
of Odisha during 2014-15 is estimated at Rs.28,384 as per the advance estimates, which
accounted for a growth rate of 7.31 percent over 2013-14. Before the beginning of the 11th Plan,
i.e., during 2006-07, the per capita income of Odisha was Rs.21,585. It increased to Rs.25,847 in
2011-12, i.e., at the end of 11th Plan, registering a growth of 19.74 percent during the 11th plan
period. Odisha has been continuously striving to bridge the gap in the real per capita income with
the national average. the gap in real per capita income between Odisha and the national average
has been reducing over the recent years
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
Conclusive Remarks:
Significance of Mining in terms of Employment GenerationThe indicator of the economic significance of sector is often reflected through its employment
generating capacity as India as well as Odisha has been experiencing high incidence of
unemployment since independence.
Mining and Quarrying provides employment to different sections including tribal
groups. The above discussion shows the number of workers directly engaged in various mining
activities from 2004-2015 .There has been negative growth in some of the years because this
sector has been increasingly employing labour-saving and capital-intensive production
techniques and technology over the years. However, the employment has touched 51,877 by the
end of 2014-2015 showing an increase of 18.7% over 2013-2014.From equity point of view the
mining sector is not conducive for poverty alleviation through employment generation.
Conclusion:
The issues relating to much discussed emplotment scarcity problem have brought no good for the
Odisha Economy. But gradually Odishas economy has shown a sensitive growth that has caused
bydevelopment in its economic condition resulted from employment in mining sector. The
revenue incurred from mining sector have been used for social sector development of our state
,economic condition of our, causing equality in the society.. The responsibility of the
infrastructural development of the mining area should be vested on the benefitted private sector.
It is known fact that mineral resources are finite. Keeping in the requirement of the industries,
there should be proper balance between exploitation and augmentation maximum utilization
from minimum consumption should be our priority.
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26
Pratikshya
Priyasmita Sahoo
Registration
Number- PGDM/2015-17/26