Goan government is planning to give following major concessions to the mining lease holders and thus the state’s mining industry is likely to benefit if the following pending proposals are approved:
1. Hardly 5% state taxes or fees on the fresh extracted ore- Goa’s mining lease holders have already been exempted export duty by the central govt. in the presented Union Budget. The state government has reduced local fees and taxes by almost 95% for the fresh ore they would now extract or export
2. Base price for upcoming e-auction would be slashed significantly- Since bidders are showing less interest for the upcoming e-auction over majority of it belonging to low grade and citing drop in international iron ore prices, base prices for e-auctions may be slashed considerably. Against the previous e-auction’s base price of INR 500/MT the upcoming e-auction may witness base price of INR 300-350/MT
3. No royalty if the lease holder successfully bids for the ore lying at its own lease property- If the lease holder successfully bids for the ‘illegally extracted’ iron ore lying at its own lease property, no royalty would be charged on its export.
4. Goan government would pay back the amount of royalty collected in previous e-auctions- Another proposal that is in pipeline is to pay back the amount of royalty, in the cases of e-auctioned ore purchased by the same lease holder in the last 14 e-auctions
-Sourced
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