The village panchayats from the iron ore mining belt and others affected by non-resumption of iron ore mining in the State have urged Union Finance Minister Arun Jaitley to abolish the 30 per cent export duty on iron ore.
The plea has been made as iron ore prices have plummeted to a five-year low, raising concerns over the viability of mining in the State of Goa.
Only recently, Chief Minister Manohar Parrikar had written to the Centre with this demand. He had also told The Hindu recently that he would raise this concern with Prime Minister Narendra Modi during his Delhi visit in near future.
The Federation of Indian Mineral Industries had also backed the demand to scrap export duty on low grade iron ore to enable them to export iron ore fines, for which there is not much demand in the domestic market.
In their separate letters, the panchayats, North Goa Tipper Owners’ Association, Mormugao Ship Agents’ Association, Contractual Workers’ Group among others have highlighted the hardships faced by the people during the two-year mining ban and expressed concerns on their survival.
The letters, inter alia, stated that over 4 lakh mining dependents from Goa are waiting for ‘Acchey Din’.
The letters scout for iron ore mining companies in Goa, which have to bear a whole gamut of taxes in the form of 30 per cent export duty, 15 per cent Royalty, 10 per cent Goa Permanent Fund (as directed by Supreme Court) apart from numerous cess, value added tax, etc., and go on to lament how they have been incurring losses over the last two years by retaining employees and maintaining assets.
People involved in the mining and ancillary business fear that this situation may completely wipe out their business, the letters pleaded.
Suresh Desai, President, North Goa Tipper Truck Association in his letter has raised concerns that if mining is not feasible in the State, it could mean no jobs to over 5000 truck owners registered with them.
Mr. Prakash Raut Dessai, President, South Goa Progressive Truck Owners Association, in his letter, has expressed anxiety that all their savings has been exhausted over the two years.
Mormugao Ships Agents Association (MSAA) has also demanded abolition of export duty. Carmelino Machado, Vice President, MSAA noted that the overall business of the shipping industry has taken a beating due to the ban and reduced to just 30 per cent of volumes. The association has highlighted the hardships and job cuts faced by the industry due to the ban. Mr. Kastubh Kamat, Vice President of The Goa Custom House Agents Association has reciprocated the concern.
The low-grade-ore producing Goan miners are apprehensive of a drop in low grade iron ore prices in the international market and reports of African companies capturing China market where majority of Goa’s ore used to be exported.
Last week, Goa Cabinet approved the Mining Leases Policy and the Chief Minister assured that some lease allotment will take place by October 15, raising the hopes of the mining dependents.
