Mining industry expects union budget to scrap export duty

PTI, PANAJI | 27 February 2015 21:18 IST

Mining industry players in Goa today said they are expecting the central government to scrap export duty on iron ore in the Budget tomorrow.

Experts said the move is much needed for survival of the beleaguered industry in the state. The government has currently imposed 30 per cent export duty on iron ore export making it the highest taxed sector with taxation touching 70 per cent mark. 

“I am hoping that export duty will be completely abolished at least on iron ore, 58 degree and less (category of iron ore),” Shivanand Salgaoncar, President, Goa Mineral Ore Exporters’ Association (GMOEA), told PTI today. Salgaoncar said considering the market situation, like falling international prices of iron ore, export of low-grade ore will not materialise, if export duty is not abolished.

Owner of Goa’s one of the leading mining firms, MD of Fomento Resources, Ambar Timblo said that if export duty (on iron ore) is not scrapped, chances of resumption of mining activity will become difficult. He said the duty should be completely abolished. ”This (export) duty is affecting low-grade cargo shipped from Goa,” Timblo added.

The industry is currently upbeat after chief minister Laxmikant Parsekar announced recently that suspension of environment clearances (EC) of mines in the state would be revoked by Union Ministry of Environment and Forest within a week.

 

“The EC is most important. Courts have given their clearance. MoEF revoking the order suspending the ECs is most important step,” Timblo said. Reacting to CM’s statement, Salgaoncar said reinstating ECs would be the first step for mining resumption. ”It is the first step for mining resumption. And most important step. I welcome chief minister’s statement,” he said.

Vice President, Corporate Affairs, Sesa Sterlite Iron Ore Division, A N Joshi said the decision to reinstate ECs is a welcome step. ”People of Goa have suffered so much in the last two- and-half-year and are eagerly waiting for mining to resume. Reinstatement of ECs is one of the major clearance required for mining to restart,” he said.

“We are waiting for a formal announcement from Environment Ministry for the same,” Joshi added. Mining industry in the state has come to standstill since last over two years due to allegations of illegal mining. State government has already started process to renew mining leases after Supreme Court lifted the ban in April last year.


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If you go by Modieconomics (make in India), scrapping of export duty on iron ore looks difficult

- sanjay dessai, Curchorem | 27 th February 2015 23:20

 

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