PONDA: Stating that the mining closure in Goa for over two years had caused a loss of USD 8 billion to India, a Sesa Sterlite Iron Ore Business official has sought the abolition of the 30% export duty on iron ore, particularly for Goan mining industry, as there are no takers for their ore within the country.
Sesa Sterlite Iron Ore Business Vice President (Corporate Affairs) A N Joshi was speaking at the ‘Indian Mining Day’ celebrated by the Mining Engineers Association of India (MEAI), Goa Chapter, at the Goa Engineering College, Ponda.
“Issues in the domestic mining sector, including bans, were the primary reasons for rise in Current Account Deficit of the country in the last financial year.”
“Indian economy has lost USD 8 billion (or about Rs 48,000 crore) due to closure of mining operations in Goa for last two years. The same has been highlighted by the recently announced ‘Goa Grant of Mining Leases Policy’ of the state government,” said Joshi.
Explaining it further, he said that both, the Central government and State government have lost about Rs 25,000 crore in terms of taxes, royalty, etc. in the last two years, while loss to people of Goa was about Rs 17,000 crore or 35% of the total loss of USD 8 billion (Rs 48,000 crore). The mining lease holders have also lost about USD 1 billion or Rs 6,000 crore due to the closure.”
Quoting the official figures of GDP growth, Joshi said: “the impact of mining bans was visible to Indian GDP growth, which has plunged to below 5% in last 2 financial years (4.5% in 2012-13 & 4.7% in 2013-14).
Lauding state government’s efforts for resumption of mining operations in Goa, he said that the process of renewing mining leases has already started as per the directive of the Supreme Court.
“Goa Grant of Mining Policy was recently announced by the state government. We hope that renewal of mining leases are done as per the direction of the Bombay High Court which has directed the state government to renew the leases of 28 lesses who have paid stamp duty. This will pave the way for resumption of mining in the state,” Joshi said.
“All going well, industry should be able to restart the operations in about a month’s time.”
He also called for a need to think about some other issue like construction of dedicated transport corridors and abolition of 30% duty on iron ore exports.
According to him, it is the right time that the Industry and the Government should come together to develop road corridors for 24 hour, high capacity, low density transport, so that no disturbance is caused to the common man.
“There is a need to abolish the 30% export duty on iron ore, particularly for Goan mining industry as there are no takers for their ore within the country. Miners of Goa will have to export only, if they wish to resume mining operations,” he said.
The MEAI members gathered to celebrate the annual function of the apex body of mining engineers in India. Every year, member of the MEAI celebrate November 1 as ‘Indian Mining Day’ across the country. To mark this day, member of MEAI also discussed the current status of mining scenario in Goa.
Founded in 1957, the MEAI aims to safeguard and enhance the professional competence and integrity of mining industry professionals viz., mining engineers, geologists and allied engineers, serving in the opencast and underground mines.
It is also aimed at contributing its might to induce scientific and technological developments in the mining industry for the benefit of its profession and the country. Currently, MEAI has 24 Chapters that are geographically located across the length and breadth of the country, including Goa, and they represent the aspirations of the mining fraternity.
