PANJIM: One of the mysteries which still haven’t been solved, is the government’s complete ‘mood swing’ from veering towards the profit maximizing route of auctioning mining leases to a complete rejection of the auction route as opposed to giving it to the existing players.
The government, has officially rejected the auction route while admitting in the very same paragraph of its grant of mining leases policy that “there cannot be any gainsaying that the mode of auction could have brought in possibly a greater revenue share for the State of Goa on account of competitive bidding”.
And now comes the big reason for rejecting auctioning leases, which has never been explained. The Chief Minister in his short duration discussion on mining leases in the Assembly which has been reproduced in the grant of mining leases policy. ‘It (auctioning of leases) would have involved inviting unknown business interests who are often referred to as mining mafia, to carry out and undertake mining activities causing risk and danger to several areas including ecological factors.
Defending the existing lease holders as the ‘good guys’, a substantial part of the policy went towards explaining why the very same lease holders whose lease renewals the government vehemently opposed in its affidavit in the High Court. “It would be futile to challenge the judgment of the Hon’ble High Court before the Hon’ble Apex Court, as this would delay the commencement of mining operations. The state has been virtually starved of funds”. The policy framework of the “Grant of Mining leases policy”, states “27 mining lease holders, despite the closure of mining operations… have paid the stamp duty and other levies. Such payments helped the State government to over ride the financial crisis at that point of time”. The justification also included that the mining lease holders had invested heavily in the development of mines and buying of machinery.
The stand that the same government took in its petition before the High Court on the maximum utilisation of resources for the benefit of the State is interesting. “When such a policy decision (on how resources such as iron ore should be won and managed) is not backed by social or welfare purpose… and natural resources are alienated for commercial pursuits of profit maximizing private entrepreneurs, adoption of means other than those that are competitive and maximize revenue, may be arbitrary and face the wrath of Article 14 of the constitution” (Equality before the law for all)
It is important to now ask who is the mining mafia according to the government, because of who the government, chose to ditch the most profitable auctioning route. Clearly none of the mining lease holders who became the State governments’ responsibility, in lieu of the financial benefits is the ‘mafia’. Then who is? The Chief Minister’s line “unknown business interests who are often referred to as mining mafia”, is a serious charge, made in a haze of vagueness. If the unknown is the mining mafia, then who are the 16 companies summoned by the Enforcement Directorate on Friday which includes a host of mining traders and exporters, who are at the core of alleged mining illegalities, which includes entities under the radar of authorities like Front International and Bagadiya Brothers as well as entities like MMTC and reputed family-run companies like Chowgule and Co Pvt Ltd . (series concludes)
