Panaji, Oct 30 (IANS) Goa Chief Minister Digambar Kamat Friday said that the “green cess” on mining rejects generated in the state had not been scrapped, but “merely delayed”.
The tax of Rs.30 per tonne of rejected ore, which was announced by Kamat in his last budget as a measure that would help shore up the state government’s tax collection by nearly Rs.375 crore, has since been caught in the red tape.

“The matter is with the law department, which is working on the proposal to ensure that it is watertight and up to thorough scrutiny,” Kamat said at a press conference here.

“We have surely not scrapped it,” he added, adding that the government was treading cautiously on the issue, because mines was essentially a central subject.

“Green cess” was a much touted initiative announced by the Congress-led alliance government in the state, which according to Kamat would raise enough revenue to take up land replenishment measures in the mining affected hinterland of Goa.

The state’s powerful mining lobby and the Goa Chamber of Commerce and Industry have, however, stiffly opposed the move.

“The Rs.30 per tonne of mining reject charge is harsh. With a steep increase in central government’s royalties and since the Goan ore is low grade and not priced high in the international market, this additional charge will put the industry under more strain,” GCCI president Caesar Menezes said in a memorandum recently submitted to the state government.

Nearly 33 million tonnes of iron, manganese and bauxite ore are extracted and exported out of Goa from over 100 operational mining leases in the state.