PANAJI
The Goa Chamber of Commerce and Industry (GCCI) has urged the Centre to continue with zero export duty on low-grade iron ore, while claiming that imposition of duty would result in an annual revenue loss of more than Rs 800 crore from the existing production alone and also affect future bidding for mineral blocks.
According to media reports, the Central government intends to impose a hefty 30 per cent duty on low grade iron ore exports from October to ensure an uninterrupted supply to steel companies at lower prices. The Goa Mineral Ore Exporters’ Association (GMOEA) has already appealed to the Centre against the move.
In a letter to Union Mines Minister G Kishan Reddy, GCCI has said that such a move would deal a major blow to Goa's mining sector, destabilise ongoing operations, undermine investor confidence and jeopardise thousands of livelihoods dependent on the industry.
Appealing to the Centre to weigh Goa's "unique structural constraints," GCCI urged that the present NIL export duty regime for low-grade ores from Goa and the Konkan region be retained.
"Such an approach will support local livelihoods, ensure sector viability, maintain fair trade practices, and avoid destabilising an already fragile Industry," GCCI President Pratima Dhond said in the letter.
Dhond pointed out that Goa’s mining resumption is still in a "sensitive early phase" after years of suspension and court battles. Out of 12 blocks auctioned, three have commenced production, while others are expected to begin later this year.
“The Supreme Court has also capped extraction at 20 million tonnes per annum, restricting Goa's contribution to less than five per cent of India's total production. In this backdrop, an export duty on low-grade ore would not only undermine investor confidence but also result in an annual revenue loss of more than Rs 800 crore from existing production alone," the GCCI cautioned.
“Any additional levy could affect competitive bidding in future auctions, reduce operational viability, and erode the fragile recovery of Goa's mining-dependent economy,” it added.
Dhond said that an average grade of Goa's iron ore is just 54 per cent Fe, far inferior to ore mined in Odisha, Karnataka, Chhattisgarh and Jharkhand and that Goan ore is largely unsuitable for domestic steelmakers, since higher-grade ore from eastern India are both more cost-effective and readily available. The GCCI said that even pig iron units in Goa rely mainly on high-grade ore or imports.
The chamber said it has already briefed Chief Minister Pramod Sawant during his visit to GCCI on September 8, where he assured the matter would be looked into.
