Goa mining ban equals Rs11,000 cr loss to govt

The central and Goa governments stand to lose about $2 billion, or over Rs11,000 crore, in taxes and royalties if the Supreme Court-imposed ban on mining in Goa continues till May.

This translates into a per-day tax revenue loss of around Rs28 crore, over and above the losses that would be incurred by the companies, miners and traders in the state.

Ambar Timblo, managing director, Fomento Resources, one of the oldest and the biggest miners in the state, said, “While it is of course a loss to all companies and the people employed by them, the loss to the state and central governments will be to the tune of $2 billion annually.”

He said the export season in Goa begins on September 20 and extends till May, or the onset of monsoon, but with the ban hardly any shipments have moved.

“The state’s order for a temporary ban and the Supreme Court’s order for a complete ban has led to drying up of shipments on Goa ports,” Timblo, also the honorary secretary of Goa Mineral Ore Exporters Association, said.

The state exported 50 million tonne of ore in 2010-11, raking in close to Rs10,000 crore in taxes and royalties for the central and state exchequers, he said, adding the industry also earned roughly Rs24,000 crore of foreign exchange.

The entire mined ore in Goa is exported as there are no takers in the domestic market due to a very low quality of the resource. The ore reserves in the state have low grade Fe (iron) content of below 58%.