Exporters expect ~34bn hit from Goa mining ban
Goa mineral ore exporters have written to chief minister Manohar Parrikar, voicing concern in view of the Supreme Court ruling cancelling the licences of 88 mines in the state.
The SC order will impact revenue worth ~34 billion, the Goa Mineral Ore Exporters’ Association (GMOEA) has said in the letter dated February 12.
The livelihood of several dependent segments would be at stake if mining activities are halted, leaving the industry stakeholders virtually jobless without any alternate source of income.
In its February 7 judgement, the apex court had directed mining lease holders to stop all activities till March 16 and apply afresh for leases. Over 60,000 people in the state are feared to lose jobs, directly or indirectly. If dependents are counted, the figure will go up to 200,000, the letter read.
Besides, the order also run the risk of increasing nonperforming assets (NPAs) for banks as firms supplying mining machinery, trucks will lose their income, the letter stated, adding that Goa's economy would suffer owing to loss of investors' confidence. The total contribution of mining to Goa's GDP, despite the present cap of 20 million tonne, will still be over 10-12 per cent, said the industry body. To put a curb on rampant illegal mining, the apex court had, in September 2012, imposed a ban on iron ore mining. It was, however, lifted in April 2014. Since then, the state has a mining cap limit of 20 million tonne.
Prior to this, the state’s mining potential was 50 million tonne. Goa's low-grade iron ore has no utility in the domestic market, and is largely exported to China and Japan, and the state earns a sizeable foreign exchange. Major players such as Anil Agarwal-led Vedanta Ltd and Salgaonkars are reportedly affected.