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Goa asks Modi govt for bail-out package to tide over mining shutdown

The Goa government has sought financial assistance from the central government to overcome the financial hardship caused by the loss of mining revenue besides other financial support to promote hinterland tourism.

Chief Minister Pramod Sawant, who is in Delhi to attend a pre-budget consultation meeting chaired by Union finance minister Nirmala Sitharaman said the state also sought exemptions for Goa’s mining companies from export duty on high grade ore.

While Sawant didn’t reveal the amount the state was seeking from the Centre, it is understood that Goa is staring at a revenue loss of over Rs 1,000 crore.

Mining in Goa is shut since March last year when the Supreme Court cancelled 88 mining leases and asked the state to seek environmental clearances afresh if mining is to restart.

Earlier this year, late former chief minister, Manohar Parrikar during presentation of the annual financial statements, estimated that revenue from the mining industry will only be around Rs 54-crore this year, a far cry from the Rs 1,100 odd crore it used to earn the state before it was first banned in the wake of the Shah Commission report back in 2012.

The chief minister had also raised the issue of mining with the Prime Minister during an earlier meeting.

“…centre needs to intervene, because it is a question of the livelihood of the common man…,” Sawant had said seeking Centre’s intervention

He expressed hope that the issue will be resolved in the month of July and that mining could start by November.

Seeking to avoid the process of auction, which is now mandatory for granting of mining leases, the state government has demanded amendments in the relevant law in order to extend the validity of Goa’s mining leases, which the Supreme Court deemed to have expired in 2007.

First Published:
Jun 21, 2019 16:49 IST

Source: HindustanTimes