Goa’s mining plans derailed as Centre steps in

PANJIM: The delay on the part of the State government to auction the iron ore mining leases is set to wreck the plans of Goa’s iron ore mining industry, as the Centre, taking over the powers, has asked the State government to intimate them details of the mines, including those expired in March 2020, within 45 days, for the purpose of auctioning the blocks.

Goa has the highest number of 184 iron ore leases in country that expired in March 2020, of which 124 leases can be taken up for ore extraction as per the Union Ministry’ report.

In a fresh notification issued on June 18, Union Ministry of Mines states, “The State government shall intimate to the Central government the details of all the areas or mines available with the State government for auction of mining lease, including the mining leases expired under Section 8A and cases covered under subsection (2) of Section 10A, within forty-five days of the commencement of the Mineral (Auction) Second Amendment Rules, 2021.”

It adds, “Upon successful completion of the auction, the Central government shall intimate the details of the preferred bidder in the auction to the State government and the State government shall grant mining lease for such area to such preferred bidder in accordance with rule 10,” the Ministry said further. 

The Ministry has also sought to know the outcome of any auction that the State has undertaken so far of the mining leases. 

The Union Mines Ministry had proposed amendments to the Mines and Minerals (Development and Regulation) Act 1957 with regards to mineral auction and the same was notified. 

As per the notification, apart from the number of mines, the State has to intimate the Centre with regards to the geological report in respect of any area or mine for auction of mining lease from Geological Survey of India, Mineral Exploration Corporation Limited or any other government or private entity, along with a tentative schedule for notification of such area and conducting auction of such area under sub-sections (3) and (4) of Section 10B, respectively.

It also seeks details of termination of mining lease or lapsing of letter of intent for mining lease, within fifteen days from such termination or lapse.

The Centre also sought to know the details of mines available with the State government for auction of composite licence, including the prospecting licence, those standing expired. 

The move is to ensure continuous supply of minerals in the country. “Any delay in conduct of auction has substantial impact on the availability as well as prices of minerals,” it added.  

Chief Minister Dr Pramod Sawant, while presenting the State Budget 2021-22, had announced the formation of the Goa Mining Corporation to auction the leases. The Bill in this regard, is expected to be tabled during the forthcoming session of the State Legislative Assembly in July.