Parties in Goa campaign on a minefield of joblessness

It is estimated that more than 40,000 people were involved in iron ore mining in Goa

All parties and individuals campaigning in Goa, which goes to the polls on February 4, have cottoned on to the issue of unemployment, caused to a great extent by the ban on mining imposed by the Supreme Court.

The expectation of people that mining will resume is palpable. Dinesh Ambre, a cab driver in Panaji and once an employee at a trucking workshop of Bicholim, hopes mining picks up soon. “Goans are in favour of mining. It means livelihood for many families. There was over-activity at one point, but the ban has rendered many jobless and switching to other forms of livelihood has not been easy,” he says. 

It is estimated that more than 40,000 people were directly or indirectly involved in iron ore mining in Goa. 

Former Goa chief minister Manohar Parrikar, who is now defence minister, has himself admitted that after the mining ban, state GDP had taken a hit of 17 per cent while revenue dropped by 27 per cent. 

Sources in industry and government said revenue collection dropped by Rs 1,000-1,100 crore after the ban. That is only the royalty revenue, says a senior bureaucrat here. 

“Tax collection from sales of diesel alone dropped by 50 per cent in 2012, when mining was banned. On the whole, the government lost another Rs 300-400 crore of revenue that was coming in through sales of commercial vehicles, spares, workshops, restaurants, etc,” he said. 

Parrikar said while the Shah Commission had pegged the loss due to illegal mining at Rs 35,000 crore, the government was losing Rs 4,000-5,000 crore on the royalty account. 

He said: “The loss cannot be the value of a mine.” The state government had recovered Rs 1,800 crore from mining firms during the ban period, he said. 

However, sources in the mining industry and government said while 88 iron ore leases were renewed by the government (of the active 90 when mining was banned), environmental clearances had been restored for around 60 of them. “Around 26 have started work,” said a senior officer in the state mining department. This is because the international demand for iron ore is low at the moment. The latest e-auction of iron ore got a poor response, with only 1.1 million tonnes of ore (of the 2 million tonne put up for sale by the directorate of mines and geology) getting buyeRs . 

Arvind Kejriwal, national convener of the Aam Aadmi Party (AAP) and Delhi chief minister, pressed the right button by promising a Rs 400-crore rehabilitation fund for locals who have been ‘victims’ of the mining ban. He even said if voted to power his party ensure mining resumed in Goa. 

Parrikar, the peRs on who has earned the sobriquet of being the ‘super chief minister’ of Goa, said: “Full-fledged mining has already started in Goa within the restrictions imposed by the Supreme Court. The court has imposed a cap of 20 million tonnes on mining. Maybe five-ten million tonnes can be added to this.”