Sesa Goa Limited, subsidiary of Vedanta Resources, has expressed inability to pay stamp duty for renewing one of its mining leases, citing financial issues.
The company, in a reply-letter to the Goa's Mines and Geology Department, has said that "ongoing suspension of mining operations has put considerable pressure on cash flows ... For meeting the financial commitments arising out of the payment demand, we will have to look at alternative sources of financing which will take some time".
Sesa Goa has been asked to pay Rs 46.73 crore in stamp duty to renew lease in Codli area of Sanguem taluka, which has been pending renewal since November 22, 2007. The lease has environmental clearance to extract seven million tones of ore annually.
The last date for payment was February 28, as per the state government's notice. The government has refused to grant more time.
The company, one of the biggest mining operators in Goa, concedes in the letter that it has effected a pay cut "ranging up to 25 per cent for various grades of staff".
The state is expecting to collect Rs 240 crore from mining companies in stamp duty before the end of current fiscal.
