PANJIM, DEC 30
Even as iron ore mining industry contributes 10.14 per cent of State’s Gross Domestic Product (GDP), an expert says that it also has environment degradation to the tune of Rs 548 crore per annum.
However, the expert also feels that State will lose Rs 1,842.20 crore every year if it bans iron ore mining.
The report on ‘Contribution of Goan Iron Ore Mining Industry’ by National Council of Applied Economic Research (NCAER) pointed out that the major portion for environmental degradation comprises of deforestation which is valued at Rs 467.3 crore annually.
Goa, which has total surface area of 370,200 ha has approximately 2,000 ha covered under mining concession, which are active.
“Given the fragility of Goan ecosystem, the government has prepared a broad based regional plan to implement certain policy measures to maintain the balance of the same,” the report says.
The report, which was released by Chief Minister Digamber Kamat points out that the benefit of iron ore extraction in Goa is much more than the environment cost associated with it.
NCAER’s chief economic advisor R Venkatesan has estimated that costs associated with giving up iron ore industry in Goa would be greater by Rs 1,842.20 crore per year.
“The share of iron ore industry in Goa’s GDP will go up if the indirect contribution due to the multiplier effect is accounted for,” he said adding that the total share of iron ore mining in GDP including direct and indirect effects, is 12.74 per cent.
Though the state has earned Rs 9173 crore from the exports of iron ore, the study reveals that taxes paid by the mining industry to State and Centre are to the tune of Rs 2,500 crore, last fiscal.
“The Central government was paid Rs 2,000 crore in the form of taxes which includes corporate tax of Rs 1600 crore,” Venkatesan said.
Besides the contribution to GDP, the iron ore industry’s contribution to employment (workforce direct and indirect 75,000) is significant is only next to the tourism sector employment (84,000).
Addressing the gathering, the chief minister said that the Centre is planning to bring in drastic change in Mines and Minerals Development and Regulation Act (India) (MMRDA)
“I too have recommended several changes. The suggested changes will give relief to all those living in mining areas,” he said.
Kamat stressed on the need to maintain balance between mining and environment, by creating less harm to the environment.
The dignitaries like President of Goa Mineral ore Exporters’ Association (GMOA) Shivanand Salgaoncar, former chief minister Shashikala Kakodkar, chairman of GMOA P M Mukharjie, transport director Arun Desai, Goa State pollution Control Board Chairman Simon D’souza and others were also present.
