Mining revival in focus, truck and barge owners get financial help

Porvorim: With tourism likely to be affected by the crisis in West Asia, the state budget sought to revive the mining industry by continuing existing support scheme for truck owners and announcing a new scheme for barge owners to repair their vessels.

Chief minister Pramod Sawant said state govt will generate around Rs 300 crore from iron ore exports.


He also announced the establishment of a laboratory for iron ore grade testing at a cost of Rs 3 crore. Sawant further announced a scheme to provide spot loans to barge owners by tying up with financial institutions.

Sawant said state govt earned Rs 252 crore from the auction of 12 mineral blocks. He said govt conducted three mineral block auctions in the state, in which 12 blocks were auctioned. Of these, five mineral blocks are operational, while seven are process of obtaining permissions.

He also announced the continuation of the ‘reimbursement of green tax and fitness fee for all mining affected truck owners’ scheme and made a further provision of Rs 4 crore.

Glenn Kalavampara, representing Goa Mineral Ore Exporters' Association (GMOEA), said no new taxes or levies were proposed on the industry, which was their primary stand as the mineral industry is already overtaxed.

“Given the fact that the mineral industry can contribute healthy revenues once operations are ongoing, certain solutions to the concerns were desirable,” Kalavampara said. “It depends on the average selling price notified by IBM and the grades produced, which fluctuate periodically. In my quick estimate, based on today’s ASP, if all 12 blocks are operational, theoretically it is in excess of Rs 5,000 crore annually.”

GMOEA said that with the fourth mineral block auction, this figure will be even higher.