As the nation goes through the “ritual” of celebrating Independence day and Goa’s ministers take salutes at taluka headquarters, Goa, we need to ask Are we really free and independent. Do we have real control over out future’s and our finances. Are we as empowered a we can be. The bottom line is that if we overcome all the contemporary threats to Goa- of the loot of land and resources, paucity of opportunities and employment, we will have greater control over our natural resources and minerals. On this independence day, Herald supports the movement to ensure that we the people owe the minerals we mine and profit entirely from it rather than the mining companies. Even if no mining takes place, if we can recover the amount mining companies have earned due to “illegal mining” and accrue all the profits into a permanent fund. The interest from the amount can be directly transferred to the accounts of all permanent residents of Goa (after a criteria defines them specifically).
If mining does start, Mining companies will be mere contractors and will be paid a fee for excavating. The state will earn the profits of the entire sale. This plan will naturally suit the big daddy mining companies. Nor will it suit those in government whose politics and governance been funded entirely by mining companies. But in the hands of a revolutionary government with peoples interests at heart, even this is possible. Do read how.
Team Herald
There is a way to survive and survive well without mining. And there is a way for everyone who permanently lives in Goa to earn at least Rs 10,000 a year and for a family to earn Rs 50,000 a year. From 2004 to 2012 (the period when mining stabilized and boomed in Goa), Rs 54,000 crore was the balance left after deducting extraction expenses from the total sale of iron ore. While Rs 19,000 crore of this amount went to the centre in taxes and Rs 33,000 crore went to mining companies, leaving just about Rs 2000 crore which came as royalty, this entire amount of Rs 54,000 crore could have been ours if the principle of mining was changed or changed to make we the people the owner of our resources.
If this amount was put into a permanent “Goenchi Mati Permanent Fund” or “GMPF” and even if an interest of 3% accrued from this annually, we would have been left with Rs 1500 crore, without any mining company paying any royalty. If this amount was distributed among 15 lakh permanent residents of Goa, each person would get Rs 10,000 a year or each family (with 5 members) would get Rs 50,000 a year. Remember, if no further mining takes place in Goa. In the event of even 10 percent of mining taking place with 5 million tonnes of export instead of 50 million tonnes, the final amount each year to each one of us would also increase.
HOW WE CAN STILL GET A MINIMUM OF
RS 54,000 CRORE
The good news is that exactly the same amount can still be recovered through a different route
According to the Mines and Minerals Development Regulations Act (Section 21(5) of the MMDR Act, 1957) a full recovery of the value of minerals is required when illegal mining takes place. And Rule 64A of the Mineral Concession Rules 1960 requires simple interest of 24% to be added to the recovery amount.
The value of the minerals exported only during 2007-2012 (declared by the Supreme Court as a period when all mining was illegal) during this period works out to Rs 54,000 cr, net of royalty received. (remember since this is illegally mined ore, no extraction cost is due to any mining company)
IF WE RECOVER COST OF ILLEGALLY EXPORTED ORE WE GET
Rs 54,000 crore (and earn out of its interest)
IF WE RECOVER COST PLUS INTEREST OF ILLEGAL MINING WE GET RS 1,07,603 CRORE (and earn out of its interest)
Simple interest up to March 31, 2014 works out to an additional Rs 53,603 crore. The total works out to Rs 1,07,603 crore, around 10 times the annual State budget! It is the Government’s constitutional duty as a public trustee to recover these amounts.
Therefore even if we write off the interest, we are still left with Rs 54,000 crore. And in the best case scenario, if we even recover the interest and earn 3% of Rs 1,07,603 crore (54,000+53,603 cr) we would be left with Rs 3560 crore to be distributed among 15 lakh Goan settlers giving each about Rs 20,000 a year or a family of five 1,00,000 a year
HOW WILL THE MONEY REACH YOU
Through the direct transfer to your account much like the how your get money from government schemes
WHAT IS THE PRINCIPLE BEHIND THESE CALCULATIONS
1. The State Government is the owner of all sub-soil minerals, including iron ore. This is held in trust for the people. It is the common wealth of the people. It is our mineral and we the people should earn money from this, not the mining companies.
The Government is constitutionally required to act as a public trustee.
The Government has another constitutional duty. It is simply this: When we sell off one asset (iron ore in this case), we need to create a new asset of equal value. Around the world, this is done by investing in a Permanent Fund, essentially an endowment or pension fund. By doing this, we can guarantee that our future generations have the new assets in lieu of the iron ore.
2. Iron ore is a community asset, one that is owned by all equally, whether rich or poor. Even miners own an equal share in this community wealth.
WHAT ABOUT EMPLOYMENT OPORTUNITIES LOST IF MINING STOPS
Just the annual interest from the permanent fund will be more than all earnings of the mining related workforce
Some hard truths need to be told. The total employment generated, or earned by those directly and indirectly (barge and truck operators and providers of allied services) in the eight years is Rs 11,000 crore. The minimum amount which will go into the Goenchi Mati Permanent Fund will be Rs 54,000 crore or even Rs 1,07,603 crore of which the interest amount would be given to everyone
Meanwhile, a new public works programme, can be targeted towards the interior alignment of NH-17. This would enable the development of new industries in the interiors of the State. Skill enhancement and retraining would be needed to make the mining affected ready for the new employment.
Herald Concludes
If we fund a Universal Basic Income for all from the minerals, which are owned by all, then that is a win-win. More importantly, since minerals are capital/assets, we need to convert it into income generating assets through the Permanent Fund mechanism. Then the (inflation adjusted) income from the capital can be used to fund Universal Basic Income, and achieve Real Freedom for All.
