Govt’s GSMC move gets mixed response from leaseholders

Team Herald

PANJIM: The government’s move to manage the iron ore mining industry through a State-run Mining Corporation (GSMC) has received a mixed response from leaseholders. 

While the apex industrial body – Goa Mineral Ore Exporters Association (GMOEA) – feels that resumption of mining activities should be as per existing laws and Acts (Abolition and Declaration of Mining Leases Act, 1987), mine owner Harish Melvani has welcomed the move stating “it’s never too late”. 

Chief Minister Pramod Sawant in the State Budget 2021-22, presented on Wednesday, announced that in order to resume iron ore activities, the government intends to set up a Goa State Mining Corporation. 

In an immediate statement, GMOEA said that resumption of mining operations in the State have always been the objective of the association and its members. 

“However, the resumption of mining operation has to be as per prevailing laws and acts as well as in accordance with the matter before the Supreme Court,” GMOEA added. 

The association was referring to the Special Leave Petition (SLP) filed by mining companies before the Supreme Court challenging the Goa Daman and Diu Mining Concessions (Abolition and Declaration of Mining Leases) Act, 1987. The SLP, which is currently being heard by the Court, states that the Act should be made applicable from 1987 instead of 1961.

The State government too had filed a review petition in the Court challenging Apex Court order dated February 7, 2018 setting aside second renewals granted to 88 leases. State too, had pleaded that their review petition be tagged with the SLP, seeking to extend the life of leases till 2037. 

Meanwhile, mining firm owner Harish Melvani welcomed the decision while questioning as “why they took so long to take such a good decision”. 

Melvani said that with the issue of grant of Environment Clearance now being a State subject, the same can be expedite and mining activities can be resumed at the earliest. 

“There are 25 mines, which are viable, but mine owners are not keen to start it. The government can take them over and start extraction. Employment will be generated and mining dependent will be at relief,” he said. 

Melvani also suggested that the government can outsource the work of iron ore extraction to existing mining contractors. 

“The prices of ore in the international market are also very high. If mining resumes now, we will get good revenue,” he said. 

He also slammed the leaseholders, expressing their reservation over the decision pointing out how the people from mining belt are struggling for their survival. 

“Here the question is only of people dependent on this industry and who have lost their only source of survival,” he said.