Goa miners seek govt help to fight slump in prices

Iron ore miners and exporters in Goa today sought tax exemptions and incentives to face the situation arising out of capacity expansions in Australia and Brazil despite falling prices and a slump in the steel sector.
They demanded that the Centre withdraw 30 per cent export duty on low-grade iron ore, while the state provide relief from various taxes.
"Despite falling prices and warnings from Chinese steel sector, certain large players in Australia and Brazil have not shown signs of slowdown, but are adding capacities as expansions were planned based on boom times and returns of investment on equipment added are needed.

"This adds to the woes of the rest of the suppliers," Goa Mining Association president Narayan Bandekar said in a statement.
"Any delays for a fiscal correction in Goa or India would further aid such large competitors as there is no level- playing field for the mining industry in Goa. Hence, early intervention is a must by the governments if it is serious on resumption of mining," he said.
The mining industry in Goa is trying to limp back to normalcy after the Supreme Court revoked its ban on the activity in April 2014. The state government has renewed 80-odd mining leases since then.

Bandekar said the industry is facing difficulties in resuming the operations. "Few cases are still yet to receive necessary clearances from various departments," he said.
Falling prices is another major issue. "The prices of iron ores are at a 10-year low now. Coupled with falling prices, the existing taxes including the double taxes imposed on the industry more recently by both the state and the Central government result in a total tax structure of almost 50-60 per cent of overall income," he said.
The e-auctions conducted by the state government had not been entirely successful, indicating the market sentiments, the statement said.