NT NETWORK
PANAJI
Following increases in Goa’s iron ore production to the maximum permissible limit of 20 million tonne, the government’s royalty income increased nearly three-fold in 2016-17.
A senior government source revealed that royalty income from iron ore mining companies soared to Rs 310 crore in the financial year 2016-17 from Rs 88 crore in 2015-16.
“The major increase in royalty earnings came during the last quarter of the financial year when mining companies stepped up production.”
Along with higher output the contribution towards the District Mineral Fund (30 per cent of royalty) has also increased commensurately, added the source.
The government is gearing up for the Supreme Court hearing on hike in the annual extraction limit by 10 million tonne to 30 million tonne.
The SC has fixed dates for hearings on April 7 and April 14 as well as in May.
An expert committee has recommended that the state’s extraction limit be raised, and it is hoped that the SC will give a favourable hearing.
Expectations are that ore production will sustain buoyancy in the current year as companies want to fulfil their extraction capacity to the highest. From January-March 2017, there were increases in output by the local mining industry due to the government’s push and slight improvement in international price of ore.
Companies increased shipments from the MPT during this period and major leaseholders such as Vedanta, Fomento Resources and V M Salgaoncar, Chowgule increased exports.
The government is keen that mining companies increase output to earn royalty and tax revenue and also bolster the case for enhancement in extraction cap.
Before the mining closure in September 2012, the state extraction limit was 43 million tonne.
Mining player Vedanta recently said the worst phase for the domestic iron ore industry was over and that its Goa arm was prepared to sustain exports.
Mining activities in the state were closed for a period of more than three years from 2012 to mid-2016, although the official permission from the ministry of forests and environment for re-opening came in 2015.
The year 2015-16 was the first year of full-fledged operations after reopening and ore production during the year was 7.3 million tonne with royalty income of Rs 88.4 crore to the government.
