The BJP government in Goa on Wednesday approved a policy permitting mining companies to export low-grade iron ore, paving the way for resumption of mining activity that has been stalled since 2018.
The Cabinet’s nod for the policy comes ahead of the Assembly election scheduled for early next year. Resumption of mining activity has been a key poll promise of Arvind Kejriwal’s Aam Aadmi Party and the Congress.
Speaking after the Cabinet meeting, Chief Minister Pramod Sawant said about 10 to 20 million metric tonnes of low-grade iron ore was lying at different locations outside the mining leases, and could sustain mining activity in Goa for the next four-five years.
“The State government has formulated a policy for regularisation of mining dumps on government and private land,” Mr. Sawant said.
Fine for dumping
The Chief Minister stated that in the past the State Land Revenue Code had empowered the government to impose fine if land was used for dumping mining rejects or similar materials without permission.
“We have collected fines to the tune of ₹200 crore in 2013-14 from people who had dumped the ore outside the mining leases. Those who have paid the fines will be allowed to move the dumps after taking permission from the Indian Bureau of Mines and paying the royalty payment as per the policy,” said the Chief Minister. The government would take over the mining dumps where the penalty was not paid and auction the ore.
88 leases cancelled
In March, the Supreme Court had deemed Goa’s mining lease renewals to be illegal and cancelled 88 such leases that had been renewed by the State government in 2014-15.
The BJP government under Mr. Sawant has been looking for ways to kick-start the mining sector ahead of polls. Goa’s mining sector, which contributed about 15-16% of the State’s Gross Domestic Product in 2011-12, now accounted for barely 2%.
Mr. Sawant said the dumps were allowed to be exported through the recent amendment to Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Amendment) Rules, 2021 that came into force from November 12, 2021.
