Leading industry body Federation of Indian Chambers of Commerce & Industry (Ficci) has advocated extending the validity of all mining leases in Goa till 2037.
Mining operations in Goa have screeched to a halt since March 16 last year following a ruling of the Supreme Court. The apex court in a pronouncement in February 2018, had declared operations of all 88 leases illegal that were functioning under second renewal.
Articulating the plight of the miners, Ficci, in a recent submission to NITI Aayog, said the abrupt shutdown of mining activity in Goa has caused a colossal loss to the industry as a whole. “Also, as the provision of collection of royalty and dead rent is made prospective i.e. from 23rd May, 1987, it is recommended that the term of mining leases granted should also be extended till 2037, with prospective effect from 23rd May, 1987 and not retrospective from 1961. As such there is a need to harmonize the Goa Abolition Act and the MMRD Act, 2015 as it appears that this has been not entirely considered’’, Ficci said in a presentation to the planning think-tank.
“Therefore, Government’s intervention is requested for early resumption of mining operations as the situation at ground is a grave concern for the whole sector. As per amended MMDR Act 2015, all mining leases granted before the commencement of the Amended Act, 2015 shall be deemed to have been granted for a period of 50 years”, it added.
Historically, Goan mining concessions were originally granted under the Portuguese Colonial Laws (Decree 1906). Even post the Liberation of the Goa, efforts to ensure applicability of MMDR was unsuccessful and as such, a Bill was tabled in Parliament as “The Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act, 1987”, which came into being on May 23, 1987.
Goa’s mining industry, having a size of around Rs 3400 crores and contributing over 10-12 percent to State GDP is under severe threat due to the recent Supreme Court decision. This can severely impact the employment of around 1.5 to 2 lakh people, who are directly or indirectly dependent on the sector for livelihood. Needless to say, this can also potentially lead to severe loss of investor confidence in the country by increasing the Non- Performing Assets pertaining to the Mining sector.
According to the apex court’s previous judgements, only fresh leases were to be granted by the Goa government, not second renewals. This decision has led to stoppage of mining operations in Goa with effect from March 16, 2018.
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