Mines Department high on royalty

Mines Department high on royalty
HERALD REPORTER
PANJIM, JAN 11
In what could be called record of sorts, the Mines Department has so far collected Rs 536 crore in form of royalty through export of iron ore and this further expects to touch the Rs 700-crore mark by the end of fiscal year 2010-11.
Out of the Rs 536 crore, Rs 528 crore was from royalty imposed on export of iron ore while the rest was from royalty of other minerals.
Department of Mines and Geology Director Arvind Lolienkar said that the State Government has put in strict measures, which have discouraged the evasion of royalty. “We are now charging royalty ad-valorem which has also helped us”, he said.
As per the Government figures, total 28 mt ore has been exported from the State. Lolienkar said the State Government’s estimated target of Rs 600 crore in the form of royalty would be surpassed for this financial year.
“We believe that Rs 700 crore would be collected as royalty for the current year”, he said.
During fiscal year 2009-10, Goa earned Rs 292 crore as revenue.
On an average around 40 mt of ore is exported from Goa which includes the mineral extracted locally and also brought in from neighbouring Karnataka.
“Royalty charged on ad-valorem was implemented in the State in August 2009, when most of the shipment was already done. Hence the royalty collected was less”, director explained.
After the assurance by Chief Minister Digambar Kamat on the floor of the House, the Mines Department has already made it mandatory for ships to get NOC from them before the consignment leaves the shore.
Lolienkar said that there were some hiccups in forcing the consignment leaving from Mormugao Port Trust (MPT) to get such NOC.
“We are meeting MPT chairman this week and all the issues would be settled”, he said.
The State Government had already written to the Union Minister for Shipping and Secretary of Shipping respectively, bringing to their notice the reluctance of the MPT authorities to follow the procedure.
Panjim port, which is State-run, does not allow ships to leave without NOCs from the Mines Department.
Lolienkar said that Goa has around 100 operational leases and all efforts are made to ensure that there is no illegal extraction or export of ore.
“There is a full proof system in place which will ensure that there is no evasion of royalty. Also, those who are illegally trying to extract the ore have been stopped and fined”, he added.