Team Herald
PANJIM: The State has identified 174 iron ore mining leases for auction. This is, however, subject to the Supreme Court decision on a petition to set aside the Goa Abolition Act 1987. If the Act is abolished, all leases would revert to concessions extending their life span till 2037. The government is also skeptical of the auction attracting bidders, as there is a 20 million tonne extraction cap.
The National meet of the Mines Minister of 21 mineral-rich States, chaired by Union Mines Minister Narendra Singh Tomar, decided that the process of auctioning of mining leases that expire in 2020, would begin with immediate effect so that mineral production does not drop.
Chief Minister Manohar Parrikar, who is also Minister for Mines, attended the meeting and said, “We have identified 174 leases whose 50 year lease period expires in 2020. However, there is one important matter before the Supreme Court that is the challenge to the Abolition of Concession Act 1987. It is yet to be decided.”
“If it is decided as per the act than these 174 leases expire in 2020, but if the decision goes for prospective abolition (that is from the Mining Concession (Abolition and Declaration as Mining leases) Act 1987), than the lease life ends in 2037,” the Chief Minister explained.
Mine owner Anil Salgocar had filed a Special Leave Petition before the Supreme Court challenging the Union government’s Abolition Act that converted all concessions into mining leases. Government is awaiting the Supreme Court verdict to interpret whether the 50 year life period for the leases is to be considered from 1961, then all the leases end in 2020 and if it is from Concession period, 1987 then 2037.
Explaining in detail, Parrikar said that Goa’s mines were concessions granted during the Portuguese time and in 1987 the Abolition of Concession Act was enacted by the Parliament, by which all Goan mining concessions were abolished and converted into leases.
“Mine owners went to Court and the matter is 30 years pending before the Supreme Court. Now the contentious issue is can you abolish with retrospective effect because that act said that concessions of all mines from 1961 stand abolished,” he said.
Apart from this, there is the issue of capping, Parrikar said, questioning ‘how will you attract people, when you cannot exploit more than 20 million tonnes?’
“Currently there are 84 leases capable of producing more than 20 million tonnes. I don’t have the required export quota with me. 20 million tonnes is not even sufficient for the current operational mines. If the price is all right they can export even 30 million tonnes,” he said.
“Who will come forward to buy a mine, when there is no guarantee of export?” the Chief Minister questioned.
He said the issue has been raised with the Union Ministry to get the State out of that quota for the auction process. “These are two major difficulties before the state government before going for auction process. We have to tackle these issues,” Parrikar stated.
Earlier, speaking about the countrywide auction process, Tomar said the Union and State governments have unanimously decided that the auctioning process of mines should begin from now.
He said that in the first phase 88 blocks were identified for auction of which 33 have been auctioned getting a revenue of Rs 1,28,000 crore to different states. “Due to auction, States are getting additional Rs 98,000 crore which they would have not got, if they were not given through auction mode,” he said. “This is one of the biggest achievements of the policies of Modi led government,” he added.
The minister said that during the meeting it was decided that “all the remaining blocks would be auctioned on an immediate basis and rest of the blocks should be made auction worthy through exploration.” He said that in 2017-18, 72 blocks which are identified would be auctioned and 2018-19, 51 blocks will be auctioned.
