'Mining ban to affect India's competitiveness in international market'

The closure of iron ore mining in the state will affect India's competitiveness in the international market and rating in ease of doing business, the industry stakeholders today said.

According to South Goa Truck Owners' Association President Prakash Raut Desai, the closure of mining leases in the state will hit the country's and Goa's economy, as in the absence of mining the revenue, which used to go to the Centre and state in the form of royalty and others, will stop.

"This money was used by the state for development of the state, including infrastructure development. Now that the mining has come to a halt this money would not go to the state and Goa would be at disadvantage," Desai said here.

 

According to the industry experts, the revenue, which also includes royalty, paid by the mining industry to the Centre and the state is around Rs 4,500 crore per annum at 20 million tonnes (MT) iron ore extraction cap, currently applicable in Goa.

This 20 MT iron ore extraction cap is to be enhanced to 30 million tonnes per annum as per the expert committee report submitted to the Supreme Court, the experts said.

MSAA -- an association representing shipping agents at the ports - is of the view that the entire international community of foreign owners has become jittery at the disruption of mining operations.

"Insurance premiums (of goods transported in ship) are shooting up and this will spoil Goa's and India's image and freights will get higher for the fear of disruptions and vessels getting stuck up," Mormugao Ships Agents' Association Executive Committee member Manu Thakker said.

"This will affect India's competitiveness in international market which is falling and our rating in ease of doing business," he stressed.

Stating that this is the second time disruption has taken place in the mining sector in last six years, Thakker said that the foreigners are looking at Goa as no longer a safe place to send their vessels.

"At its peak 1,000 vessels are called Goa annually....As all this will come to a halt, we along with ship repairers, ship chandlers, barge owners, divers etc who employ so many skilled workers in Mormugao port have...requested both Central and State governments to allow the mining to continue and not disrupt the same, while following due procedures of law," he added.

Last month, the Supreme Court had quashed the second renewal of iron ore mining leases given to 88 companies in the state in 2015.

The apex court had said it was giving time till March 15 to mining lease holders, who have been granted a second renewal in violation of its previous directions, to manage their affairs.