SC allows e-auction of 11.46 mt of iron ore in Goa

Goa, which accounted for more than half of iron ore exports from India, has seen nil exports since the ban

The Supreme Court on Monday allowed the e-auction of about 11.46 million tonnes (mt) of iron ore already mined in Goa.

A monitoring committee would conduct the e-auction and deposit the amount collected in a separate account, after deducting royalty and trade taxes. Another panel would be formed to decide a cap on the output of iron ore in the state. An interim report on this would have to be submitted by February 15, 2014, the court said in its order. “We are setting up a six-member expert committee to study the cap on production, based on the carrying capacity of roads, etc,” said judge A K Patnaik.

The state government will bear all the expenses of the committees and provide secretarial and other assistance. Earlier, Goa accounted for more than half of India’s iron ore exports. However, following a ban on coal exports, India became a net importer in recent times.

In September last year, the court had banned mining in Goa, following a petition filed by Prashant Bhushan, after a judicial commission headed by judge M B Shah had exposed a Rs 35,000-crore scam involving top mining companies, politicians and bureaucrats. It had also banned illegal mining in Karnataka in July 2011. However, resumption of some of these mines was allowed last year, as well as in April this year.

The Odisha government had banned the export of iron ore in October 2012. It had said iron ore mining would only be allowed for captive use. Following the ban, iron ore exports fell 70.25 per cent to 18. 37 mt in 2012-13. Since 2009-10, when exports stood at 117.72 mt, a constant decline in iron ore exports has been seen — exports fell to 97.6 mt in 2010-11 and 61.7 mt in 2011-12, according to data provided by Federation of Indian Mineral Industries. Production fell to 135.8 mt in 2012-13 from 167.2 mt in 2011-12.

“It is a much delayed order, but a good beginning. But it is not the end of all and it can’t be a moment crowing glory. The court is oblivious to the suffering of the people dependent on the mining sector and to the state’s economy,” said Christopher Fonseca, general secretary of the All India Trade Union Congress (Goa) and a member of the Goa Mining People’s Front. Most of the iron ore mined in Goa belonged to  Sesa Goa and Fermento, he added.

The court order said a committee would conduct a survey of the stocks, before conducting the auction; the other would comprise six experts on ecology, mining, forest and other disciplines. They would submit their interim reports to the court on February 15, when the case will be heard again.

The court order was in response to a petition moved by the Goa Foundation, which had alleged rampant corruption and degradation of the environment of the state. The order clarified the money recovered in the auction would remain in the separate account till the Supreme Court decided the legalities. The members of the committees would be finalised next Monday, after examining the list of experts submitted by different parties.

The Goa government said it had already set up a committee to study mining in the state and taken effective steps to prevent illegal mining and unregulated exports.

The public interest petition moved by Goa Foundation had resulted in a ban on excavation of iron ore, as well as its exports, leading to a crisis in steel and other industries. The foundation had sought cancellation in all cases in which leases had expired on November 21, 2007, but mining continued.