Sesa Goa seeks FM's support for lifting mining ban in Goa

Mining in Goa is a win-win situation for all concerned, will help restore investor confidence, says company's MD P K Mukherjee

Vedanta Group firm Sesa Goa has sought Finance Minister P Chidambaram's intervention and requested him to anchor the coordination between various government departments, so that the mining ban issue can get resolved in the Supreme Court.

In a letter to the Finance Minister, Sesa Goa's Managing Director P K Mukherjee said Goa's economy has been suffering since last 10 months due to the mining ban, which has caused severe economic and social distress to the people of Goa.

Noting that one-third of Goa's population is dependent on mining, he said the state government and the industry have already initiated several steps to strengthen the compliance mechanism for ensuring legal mining in the state.

"We would also request for your support in all spheres of central government, so that the matter gets quickly resolved in Supreme Court and thereafter all ministries like Mines Ministry, MoEF (Ministry of Environment and Forests) and the state government can take necessary action to permit resumption of mining as soon as possible," Mukherjee said in the letter.

Pointing out that Goan mining industry has lost its traditional markets like China, Japan and South Korea to competitors from other parts of the world due to the ban, he said resumption of mining in Goa is a "win-win situation for all concerned" and would help restore investor confidence.

He further said over 11 million tonnes of iron ore are lying stock-piled and pose severe environmental threat.

Besides, the country also stands to lose the opportunity of earning $1 billion due to stock piling of the mined ore.

Sesa Goa, before the ban in Goa, used to be the largest iron ore mining firm in private sector, with a production of about 14 million tonnes (MT).

Before the ban was imposed, Goa used to export over 40 MT iron ore as the low quality of ore produced in the state was not of much use for domestic steel producers.

The mining ban was first imposed by the state government in September last year as a result of a report of Justice M B Shah Commission, which pegged a loss of about Rs 35,000 crore to the exchequer due to illegal mining. Later, the apex court in October, 2011, had put a blanket ban on mining and transportation of the minerals while hearing a PIL.

Several industry associations and political leaders of Goa, in the past, have sought Centre's help in resolving the issue as the Apex Court is yet to begin regular hearing, while the ban has lingered on for last 10 months and is producing cascading effects on the Goan economy.

Leaders of Goa Mining People's Front (GMPF) an umbrella organisation for people affected by the mining ban have met Prime Minister Manmohan Singh twice on the issue, besides meeting several top leaders, including Mines Minister Dinsha Patel.