Goa cancels Vedanta's iron ore import permit, co defends stand

The Directorate of Mines and Geology (DMG) of Goa has temporarily cancelled import permit for 12,000 mt of iron ore, Vedanta today said while maintaining that all necessary guidelines have been complied with.
"We regret that DMG Goa has temporarily cancelled the import permit... For 12,000 mt," Vedanta Ltd said in a filing to BSE.
The company was replying in response to a clarification sought by BSE on a media report.
"Facts of the matter have been submitted by the company to DMG officials. The officials are expected to complete their survey and necessary investigation by Monday, August 1, 2016, and we expect restoration of the 12,000 mt, post inspection," the company said.

"We reiterate that this deviation occurred because of a change in the old system of import transit permit."
Further, the company does not see any significant adverse effect on operation of pig iron business from any delay in restoring permit transportation of iron ore from Karnataka.

"We would like to state that the article... Does not have a factual report and does not have any material impact on the company's performance," it said, referring to the media coverage in this regard.
The company has a pig iron manufacturing facility located in Amona-Navelim, Goa.
The plant sources the required iron ore from Goa (more than 80 per cent) and Karnataka (about 20 per cent) for producing pig iron.

"With regard to transportation of ore required for the plant from Karnataka, all necessary guidelines, procedures and protocols are adhered to by the company at all times," it said.
Following necessary clearances from DMG and the forest department of Karnataka, Goa iron ore was brought to the pig iron plant at Amonia-Navelim after paying entry tax and rural welfare tax (collected by RTO) at the border checkpost.
However, from the third week of July 2016, DMG Goa introduced a procedural change that required an individual trip sheet/entry token for each truck at Mollem checkpost on the Goa-Karnataka border, apart from the bulk import/transit permit, it said.