Mining ban led to 10% loss in Goa's GDP in 18 months: Parrikar

Goa Chief Minister Manohar Parrikar today said the state has lost 10% of its GDP growth in the last one-and-a-half years due to a ban on mining but hoped it will restart in six months.

 

Goa, which has rich resources of iron ore and other minerals, had to stop mining in the state in October, 2012, after the Supreme Court banned it.

 

The ban followed Justice M B Shah Commission report which assessed the loss to the exchequer due to illegal mining at Rs 35,000 crore.

 

"Goa's GDP growth, which would have been 16-17% in the last one-and-a-half years, has come down to 7-8%. Money-wise in the economy, it is Rs 25,000 crore (impact). GDP growth is down by by 10%. Increase in GDP is much less than what would have been due to the mining ban," Parrikar said in an interview to PTI.

 

State revenue declined by 25% to Rs 4,500 crore from the levels of Rs 6,000 crore due to the ban, while cost on items, including electricity and salary and wages, rose by 30%, the Chief Minister said.

 

He also hoped that the Supreme Court will lift the mining ban by early next month and mining can resume in 6 month's time.

 

"They (Supreme Court) have already given one relief and the second relief is also expected. On mining ban, they have allowed us to e-auction (of the already mined and available iron ore) and lifting of ban will also, I am hoping that this should happen by month-end or beginning of next month," he said.

 

Once the ban is lifted, mining in the state should start in six month's time. "So, things will come back on track then", he said.

 

When asked if the apex court does not give interim relief, as he is expecting, the Chief Minister said: "I will go to (Narendra) Modi for amending the law to allow me mining".

 

Parrikar came down heavily on Justice M B Shah Commission report on Goa which had pegged the loss to exchequer at about Rs 35,000 crore due to illegal mining, saying it is a "very casually drawn conclusion".

 

"That is very casually drawn conclusion. I do agree with losses, I am not saying that I don't agree with any of his conclusions but I did not agree with his valuation. Rs 35,000 crore is value of the iron ore he is indicating, it is not loss to the exchequer.

 

"The loss to the state is to the extent of royalty and taxation. The material will not come to the state... The loss to exchequer will be Rs 4,000-5,000 crore," he said.