Goa asks mining industry to pitch in Rs.500 crore
March 25th, 2010 - 11:37 pm ICT by IANSPanaji, March 25 (IANS) After failing to implement a green cess on mining rejects proposed in the last budget, the Goa government Thursday proposed a mineral development fund (MDF), underwritten and developed by the state mining industry, which is worth approximately Rs.6,000 crore.
Chief Minister Digambar Kamat in his budget for 2009-10, had proposed a green cess of Rs.30 per tonne of mining ore reject (or extremely low grade ore, which cannot be exported) offloaded in open areas near mining pits. Kamat, also minister for mines, had said that the revenue generated from the green cess would be used for ‘land replenishment’ and ‘environment upgradation’.
Bowing to sustained pressure and criticism from the mining industry which exports 33 million tonnes of ore annually, Kamat was, however, unable to evolve a mechanism to implement the green cess.
Kamat Thursday in his budget speech said that the MDF was a part of the Congress-led state coalition government’s public-private partnership initiative for providing “infrastructure developmental solutions to the mining sector”.
“The government’s role as a facilitator shall be focused on statutory structuring and expediency of the same (MDF),” Kamat, who hold the finance ministry, said in his budget speech in the Goa legislative assembly Thursday.
About the broad framework of the MDF, Kamat said the capital and maintenance investment for the MDF would be exclusively “ensured, underwritten and developed by the (mining) industry”.
“The government envisages an investment of over Rs.500 crore which will be made by the mining industry over a five-year period,” Kamat said, adding that the money sourced from the mining industry would be used for maintaining infrastructure, roads and attending to environmental, social and health issues in Goa’s mining regions.
“If such initiatives are taken, the government can put the revenue from the mining royalty to other social projects; rather than infrastructure which the industry can easily expand, finance and sustain,” Kamat said, adding that the frame work for the MDF would be in place within the next few months.
- 'Green cess' on mines not scrapped, only delayed, says Goa - Oct 30, 2009
- Goa chamber of commerce opposes 'green' cess on mining - Sep 11, 2009
- BJP alleges corruption in state's mining affairs - Oct 10, 2009
- Goa Inc quotes Chidambaram to remind Kamat about failed promises - Jan 25, 2011
- '25 mn tonnes illegal ore extracted in five years in Goa' - Nov 23, 2011
- Goa port blames Kamat's ministry for illegal ore export - Oct 11, 2011
- Reduce mining in Goa to one-third: Panel - May 21, 2012
- Government pulls up 20 percent mines - Sep 18, 2011
- 'Fly by night mining operators creating problems' - Nov 17, 2011
- Iron ore barge owners want cap on vessels - Nov 11, 2011
- BJP manifesto promises Goa Lokayukta within 100 days - Feb 19, 2012
- Helicopter tourism next big thing for Goa: Kamat - Mar 18, 2011
- Goa to have exclusive corridors to transport ore: Kamat - Jul 23, 2010
- Parrikar fires first salvo at mining industry - Mar 12, 2012
- Nearly 50 percent of Goa mines working illegally: Mines ministry - Oct 28, 2011
Tags: budget speech, cess, coalition government, crore, expediency, finance ministry, goa government, grade ore, kamat, legislative assembly, maintenance investment, mineral development, mining industry, open areas, partnership initiative, public private partnership, rs 500, social projects, state coalition, upgradation