Iron ore exports from Goa are not likely to resume in near future due to various factors like ’steep’ duty, upcoming monsoon season and pending regulatory permissions.
“Clearances are not in place. We have monsoon season ahead when exports are not possible. Moreover, with existing export duty the iron ore exports are not profitable,” said S Sridhar, CEO, Goa Mineral Ore Exporters Association.
He added that the central government was supposed to lower the export duty in the recent Budget, but it failed to provide any relief to the sector.
“With 30 per cent export duty, the total taxation on industry is around 80 per cent. It will be difficult to sustain under such high taxation,” Sridhar said.
Mining in the coastal state had been in abeyance for more than two years following a ban imposed by the Supreme Court, which was finally lifted in April last year with a rider that iron ore mining will be restricted to 20 million tonnes annually.
Sridhar said mining industry is hopeful that exports will begin by October once the monsoon gets over.
“But that would entirely depend on taxations. Even if all approvals are granted then the crucial issue like taxes is pending,” he said.
Goa was the largest export of iron ore before the activity was put on hold in 2012 amid reports of irregularities.
