Sesa Goa's 6 mt Narrain mine in Chitradurga (B category) is anticipated to resume operations provided CEC's recommendations made in the week before is accepted by the Supreme Court.
In August 2011, Court banned mining in Karnataka and A and B category mines that is expected to re-start mining soon. The court is to hear Karnataka mining case for three days i.e up to thursday and then start with Goa mining case.
Mr P K Mukherjee, Director Ssa Goa said that apart from huge current account deficit and impact on foreign exchange reserves, one-third of the population is reeling under uncertainty, 25% of the broad state domestic product has gone and one-third of the population is reeling under uncertainty. 255 of the broad state domestic product has gone and one-third of the state's revenue has gone.
Exports of iron ore from Goa accounts for 50% of its revenue which goes to the exchequer in the form of export duty, government royalty and in the form of income tax.
Once mining and exports begin, iron ore is likely to be sold at discount due to risk premium.
Though Supreme Court is permitting to start mining, but approvals such as Ministry of Environment and Forest (MoEF) which are all lapsed need to be in place.
Also, if Supreme Court can give an appropriate directive to ministries to allow us to temporarily start mining.
The official is hopeful to get some inventory liquidation permission from Cout in Goa atleast.
For its Pig iron operations, Sesa Goa has no plans to import a huge quantity of the expensive raw material.
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