SURAJ NANDREKAR
PANJIM: The Supreme Court verdict striking off second renewals of Goa’s mines has come as a major blow to the industry while it may not be such a bad decision for the State.
The apex court quashed the second renewal of 88 iron ore mining leases in Goa in 2015, saying the sole motive of the companies behind the commercial activity was profit maximisation, and no social purpose was attached to it.
With Chief Minister Manohar Parrikar indicating he was not quite inclined towards filing a review petition, the general opinion is that the stage is now set for a big auction of Goa’s mines.
The judgment by a Bench comprising Justices Madan B Lokur and Deepak Gupta traced the “rapacious and rampant exploitation” of Goa’s fragile ecology by private mining lease holders, whose sole motive is to make profits, for years.
Goa Mineral Ore Exporters Association (GMOEA) has refused to make any comment on the judgement but said it would impact the mines severely.
Auction an entry
to big sharks?
For ages Goan companies Dempo, Salgaocar, Timblo, Chowgule, besides Sesa Goa, have ruled the roost in mining scene. However, auction means the Goan companies will have to compete with the likes of Jindal and Adani – the big sharks of Indian industries.
An industry source, however, said that big companies may not be as interested as the quality of ore in Goa is low grade. “As it is the market rates of ore are very low and on top of that the quality of ore is also low and we don’t expect big companies to enter the ring considering these facts,” said a mine owner, refusing to be named.
Valpoi MLA and Health Minister Vishwajit Rane said that what the judgment has done is give entry to big names through the auction route. “We have to wait and watch whether the Goan companies can compete with big names,” he said.
TCP Minister Vijai Sardesai welcomed the SC decision since it could cleanse the Goan mining industry of illegalities and corrupt practices. “However,” he said, “the frightening scenario is if the new procedure for granting leases leads to Indianisation of Goa’s mining industry allowing bidders from outside to not only take over our mines but all related ancillary trades.”
This, Sardesai said, could lead to mafia rule as portrayed in the Hindi film “Gangs of Wasseypur’. “In case there is any such possibility of the control of Goa’s mining industry going out of Goa, we would prefer a total shutdown of mining in the State,” he said.
Will auction bring windfall for the State?
The 102-page judgment of the apex court noted the State sacrificed maximising revenue for no apparent positive reason, virtually surrendering itself to the commercial and profit-making motives of private entrepreneurs and ignoring the interests of Goan society in general.
But the State now feels that the coffers which are virtually empty at this moment will be full once the auctions start.
Asked whether the State is expecting big revenue from an auction CM said, “I do not want to comment on it right away, let us wait and see.”
However, industry players say with around 180 leases to be auctioned for 30 years the State could earn revenue of at least Rs 10,000 to Rs 20,000 cr. “This amount could vary depending on the bidders,” the players suggest.
