Two years and counting, but no countdown to resumption
Mining is still banned, leases are being renewed but MOEF not asked to withdraw suspension of Environment Clearances; the mining cap has not been fixed; registration fees equivalent to stamp duty has sent the mining sector reeling
PANJIM: 2014 ended pretty much the way 2013 did – waiting for mining to start. Notwithstanding all that has happened in the various courts, in government and on the streets, the September 9, 2012 order suspending all mining activity issued by the Government of Goa is still in existence.
Since the order suspending mining operations and transport holds, lessees cannot approach the Ministry of Environment and Forests for withdrawing orders under which all EC’s have been kept in abeyance.
For the mining sector the year began on three contentious fronts. Firstly the final part of the Shah commission report, which explored the possible financial criminality in export of iron ore mainly through under invoicing. Secondly, the SC order allowing mining in Goa but with stringent conditions that still haven’t been met, actually made the task of revival even more difficult. Thirdly the mining sector went to the HC to push for the renewal of leases for which stamp duty was paid. The HC ruled in their favour, inspite of the governments calibrated arguments for not renewing the leases, since the SC order made the existing deemed leases infructuous and null and void from November 2007 onwards.
The State government, much to the relief of the mining sector, did not go in an appeal to the Supreme Court and affected renewals of 13 of the 28 leases where stamp duty was paid. It is now pressing for the renewal beyond those for which stamp duty has been paid. This is clearly a shot at blatant opportunism because the High Court has specifically allowed the renewal of the leases for which stamp duty has been made and no argument has been made or won about the other leases.
But barring the renewal of leases, the industry hasn’t really got a move on, across various fronts. Here’s a borad recap
1) No decision on the mining cap for each lease. The mining cap has not yet been fixed and some crucial calculations including earning projections through transportation is based on this cap. Moreover IBM has written to the state government seeking the mining cap for each lease. The industry has stated that since the cap is a moving target, to be fixed by the capping committee of the Supreme Court, the state government could write to the IBM indicating that it would control the transportation from each mine/lease within the cap fixed by the Supreme Court Committee and the IBM could approve the mining scheme base on mineral reserves of the leases
2) The government has introduced registration charges which are equivalent of the stamp duty, which effectively means a hundred percent increase of outgoings of mining companies for each lease renewal. This could work out to a minimum of Rs 100 crore for some of the major leases.
3) The Goa government has not written to the Ministry of Environment and Forests stating that leases have been renewed and- most importantly- the order of September 9, 2012, suspending mining operations has been withdrawn. However no such letter can be written without the executive decision is taken to withdraw the suspension order.
