Goa could have grown at 16% if the mining ban wasn't there: Manohar Parrikar

Interview with Chief minister, Goa

The Supreme Court is expected to resume hearing in Goa’s illegal mining case later this month. Goa, once India’s second-largest producer of iron ore, hasn’t produced a single tonne since mining operations in the state were banned in October 2012. Manohar Parrikar, the chief minister, tells Mansi Taneja if the apex court gives a favourable verdict, mining can resume in three to six months. Edited excerpts:

 

It’s almost one-and-a- half years since the Supreme Court banned mining in Goa. How has it impacted the economy of the state, which was once the largest exporter of iron ore?

Twenty-five per cent of our revenues has taken a hit due to the ban on mining. Our total net revenue stands at around Rs 6,000 crore. Goa’s GDP could have reached a growth of 15-16 per cent but due to the ban it is around eight per cent and we are targeting 12 per cent by the end of the current financial year. A complete ban for a very long period can be very dangerous, economically damaging. Our reputation as a supplier is at stake. We expect the SC to lift the ban, maybe with conditions, soon, given that it has allowed auction of already-mined iron ore.

 

 

How are you going to make up for the loss in revenues? Is there any back-up plan, just in case the ban is not lifted?

We are trying to get revenues from other activities. We tapped areas which were not addressed earlier for recovery — we’ve collected Rs 450 crore as lease fees and land cess of about Rs 400 crore. About Rs 900 crore was recovered from the mining industry itself. Then, we improved tax collection and focused more on tourism. But it can’t be a continuous process. We are very confident the SC will come out with a favourable verdict for us. They listened to us and did give us some relief (auction of already mined ore). I am sure a permanent relief will come, maybe with restrictions. Moreover, all these aspects have to be covered through proper legislation and not necessarily through court orders and judgments.

 

When do you plan to start e-auction of iron ore already mined? Some miners have expressed concern over the legality of the ore, which will be up for sale...

We have already started the process of e-auction. It will start on February 17 and 700,000-800,000 tonnes of low-grade and high-grade ore will be up on sale. The auction will happen in phases. The miners’ concern is irrelevant, as we are following SC orders for this auction. Legality or illegality will be decided only after the SC judgment. And, once the legality is established, the person owning the ore will get the money. We will deduct our cess and deposit the rest in a fixed deposit in the bank, on the SC’s directions.

 

How soon can mining operations resume in the state?

It will take a minimum of three-to-six months for resumption because the entire machinery has been demobilised. If the SC order would have come six months earlier, the resumption would have happened immediately, as many companies kept their machinery mobilised for about a year. But it is not possible to pay salaries and keep them going for a long period of time.

 

If there is no relief from SC, what will be your next plan of action?

We will go to the Central government in June. We will ask Narendra Modi (BJP’s prime ministerial candidate) for amendments in the law (for restarting mining). We have to make laws more transparent. All this, has to be legally defined and implemented. Currently, decisions are flowing out of an interpretation of the law and not from the exact drafting of law.