While the State Government is all for a Mining Corporation in the State, mining companies think otherwise
Goa, being the smallest state, is blessed with an abundance of mineral deposits such as manganese ore, iron ore, bauxite, among other minor minerals. Along with tourism, mining has been the mainstay of Goa’s economy and a major source of livelihood for the locals.
Due to the mining stoppage, the State was already faced with the perilous problem of falling revenue and the same has been aggravated due to the Covid-19 pandemic and ensuing lockdowns, leading to Goa witnessing its worst economic crisis.
Mining has been a very important element in the economic history of modern Goa and has played an important role as a foreign exchange earner for the nation.
Mining operations have completely stopped in Goa from March 16, 2018, ever since the Supreme Court cancelled the second renewal of 88 mining leases in the State vide its order dated February 7, 2018.
This has led to a disruption in not only the mining sector, but also dependent industries, including individual truck owners, barge workers/owners as well as equipment suppliers, machinery owners, port workers, small garage owners, tea and refreshment selling stall owners and so on.
The Supreme Court in its order asked the Goa government to issue fresh mining leases and not renew existing ones if mining is to restart in Goa.
Chief Minister Pramod Sawant proposed to form Goa Mining Corporation to resume iron ore extraction and export activities, in his budget speech, earlier this year.
While the Chief Minister didn’t elaborate on what role the proposed corporation would play towards the resumption of mining in the state, Sawant assured that the Bill to set up the Corporation would be introduced in the upcoming session of the Goa Legislative Assembly and that the state was “100 per cent committed to restarting of mining in the State at the earliest.”
Sawant had also stated that a Bill would be introduced in the Budget Session of the Legislative Assembly. The session, however, was adjourned due to a surge in covid-19 cases.
The Corporation route – in which Goa’s mining leases will be handed over to a government-run Corporation, thus dispensing with the need to conduct auctions – was one of the options before the State government which has had to deal with stoppage in mining activity since March 2018.
The Goa Mineral Ore Exporters Association (GMOEA), has in a terse statement cautiously welcomed Sawant’s latest announcement.
“Resumption of mining operations in the state of Goa has always been the objective of the Association and its members. Resumption of mining operations have to be as per prevailing laws and Acts, as well as in accordance with the matter before the Hon’ble Court,” the GMOEA press statement said.
Several mining-related cases in Goa are pending before the Supreme Court. The most notable being a plea challenging the Central Government’s Act converting Goa’s mining concessions granted by the Portuguese into leases under the Mines and Minerals Development Act (MMDA); as well as a plea to retrospectively grant a 50-year validity to Goa’s mining leases till 2037, which the mining companies contend that they are eligible for.
Meanwhile, Goa Foundation has welcomed the move calling it a step in the right direction.
“This is a welcome move. If installed with sincerity, it means the government of Goa has decided to get rid of the old system with its in-built weaknesses which have facilitated unaccounted and illegal mining,” director of Goa Foundation, Claude Alvares, said.
“Though the setting up of a corporation is welcome, its management also needs to be completely professional. Hitherto, the Directorate of Mines and Geology has handled mining, but with poor business sense, and hardly any skills with the trade in minerals or their use. The new Corporation should not be run by bureaucrats or politicians,” Alvares added.
“The very need to do illegal mining will come to a halt if the Corporation holds on to all leases, hands out extraction contracts to capable persons under bidding schemes, takes charge of the output and e-auctions it professionally. Most of the wealth generated will accrue to the public exchequer. The best way to handle the revenue is to place it in the permanent fund, and distribute its investment gains to all citizens of Goa as a basic dividend, keeping the capital intact for coming generations,” he added.
The decision to form a Corporation is a welcome step, president of the Goa Mining People’s Front (GMPF) Puti Gaonkar said, adding that the Corporation should first help restore jobs of mining dependents.
The modalities of the Corporation are being worked out and will be declared soon by the State government, with timelines for restoring jobs and protecting the current employment, he said.
“If the government wants to create a Corporation, they should come out with how they are going to do it. Whether they are going to take over existing labour force, whether they are going to take over existing mine machinery… How are they going to do it?” he asked.
Gaonkar also pointed out at the delays on the part of the government for the formation of the Corporation and sought clarity from the State whether it would be “Corporation of 88 leases or the Corporation of entire (mines in) Goa.”
When asked about the progress regarding the setting up of the Corporation, the Chief Minister stated that the process to form the State Mining Corporation had begun and was currently underway. The government, which had set a target of making the Corporation functional by May 31, failed to do so after the Law Department sought clarifications on the proposal.
The Government had envisaged promulgating an Ordinance for setting up the Corporation. However, there was delay in finalising the draft of the Ordinance due to various reasons. Now, the State Government will introduce a Bill in the upcoming session of the State Legislative Assembly for setting up Goa Mining Development Corporation.
The Government will frame rules for functioning of the proposed Corporation once the Bill is passed in the Assembly.
Meanwhile, the Law Department has vetted a proposal to form a new Mining Corporation to restart the industry in the State.
This move has cleared the way for the introduction of the Bill in the forthcoming monsoon session of the Goa Legislative assembly.
A senior government official stated that the file, moved by the Directorate of Mines and Geology, has been cleared and sent to the chief minister. “As the Assembly has been summoned, the Bill will be introduced to form the Mining Corporation”
The State Mines Department had responded to all the explanations sought by the Law Department on the proposal. The State is currently in the process of finalizing the date to sign a MoU with the Mineral Exploration Corporation Ltd, to identify iron ore reserves in mining leases.
However, it is learnt that mining companies in the State have begun lobbying with ministers, MLAs and government officials to stop the State government from forming a Mining Corporation.
The government seems firm on its plan of going ahead with the plan to create a Corporation to restart mining. Sources have said that the mining companies’ concerns is that if mining leases not held by companies are transferred to the Corporation, there may be a demand from a section of society that the 88 mining leases (held by them) should also be transferred to the proposed Corporation.
The Mining Corporation Bill was scheduled to get Government approval on July 7th at the cabinet meeting, but it is rumoured that due to pressures from mining companies, the Bill did not come before the Cabinet.
Further, another source stated that if it so happens that the government transfers the 88 leases (after legal issues are resolved), the companies may not have right to those leases.
Since pre-Liberation days, mining leases have been the monopoly of the companies. The state government through the Goa Mining Corporation has decided to open new iron ore mines, other than the 88 leases, which are a subject of litigation before the Supreme Court.
Making ‘IT’ Work in Goa
GTA discusses various issues faced by the IT industry in Goa with Chief Minister Pramod Sawant
Goa Technology Association (GTA) recently organized a direct dialogue with Chief Minister Pramod Sawant regarding the challenges currently faced by the IT industry and his vision for the future of the industry. The interview was conducted by the Founder President of GTA, Mangirish Salelkar.
During the first lockdown, majority of IT businesses in the state did not face challenges like other industries, because the IT industry could work from the comforts of their homes. However, it is praiseworthy, to note that the IT companies handled the challenges of ensuring continuity of operations despite revenue loss, pandemic-related SOPs, travel restrictions, challenges with electricity and internet. The Chief Minister was all praise for the IT industry and professionals, referring them as frontline warriors for their contribution during these tough times. Sawant appreciated these companies for not only saving jobs but also for creating new ones and providing employment to Goans. Sawant sees the IT sector flourishing with opportunities in the near future; and would like Goa to be at the forefront in this area of business.
Concerning the infrastructure, Sawant informed that the government is in talks with the Central Government to get the Bharat Broadband network project implemented in Goa, which will help cover rural areas and solve the connectivity issue. While the industry in general is not happy with the internet and power connectivity in Goa, the recent cyclone made things worst wherein companies and professionals were hit the most, as internet and connectivity were disrupted all over the State.
However, the Chief Minister feels that the cyclone was a one off occurence and it is not always possible to plan for a major disruption in the current situation. Regarding internet connectivity, while he feels that the Bharat Broadband Network project will solve connectivity issues, he wants private players to be accountable for ensuring uninterrupted connectivity.
While few benefits have been rolled out under the startup policy, IT companies have remained without any benefits so far. It was encouraging to hear from Sawant that the policy benefits will be approved to all certified companies in August this year.
Sawant questioned on why only 14 IT companies have registered with DoIT and felt the need to review the policy so that more companies could receive benefits. The industry feels that while the IT policy of Goa is very good; there is a huge gap on how it is designed and coded on the website, in order for companies to apply for certification and benefits. While this is the key reason for delay, one hopes that this change will be sanctioned and the process simplified.
He also informed that the pending disbursements for startups will also approved by next month. One of the major requirements for an IT company is the availability of qualified and trained people to employ. However, of late, this has turned out to be a major business risk for the companies in Goa with Goan students wanting to move out of Goa or not many wanting to do technical or coding related jobs. This will force the companies to start hiring from out of Goa or even move out of the State where they are able to find the right kind of resources. This is also not a good parameter when one wants to attract new companies to start operations in Goa. Sawant acknowledged the importance of people and feels concerned with the drop in admission for technical as well as engineering courses. He believes that the recent initiatives on career counseling by the Department of Technical Education and introduction of programming and robotics at school level will help create interest amount the next generation and ensure strong and innovative workforce availability. New DG-Gift scheme was introduced recently by the Government. The current MoU with IBM on skilling is also a step in the right direction.
As a short-term solution, Sawant has appealed to the GTA to work closely with Department of Technical Education and initiate training and skilling programs to ensure employability to Goa’s youth. On the question of outsourcing work to local IT companies and startups, Sawant has requested interested companies to be empanelled with ITG and that they would definitely be considered for outsourcing Government projects. “Work will be given to the empanelled companies along with GEL. It is acknowledged that outsourcing jobs to local companies will help create jobs locally,” he said.
Ease of Doing Business is another popular phrase doing the rounds and the state has spent huge amounts of money on consultants over the years. It was brought to the notice of the CM that GTA has worked with DoIT, understood the process, challenges and have offered practical and acceptable solutions, which by implementing under the direction of Director IT, they could simplify the registration process for the IT companies. Sawant informed that there are no consultants involved currently and appreciated the DoIT staff for their efforts in managing the process. He also appreciated approach from the association in trying to solve the problem rather than complaining. Sawant has requested GTA to work closely with the Director of IT and Director of ITG to solve any such challenges.
Further, Sawant appreciated the role of GTA since its inception in policy formation, getting the industry together and efforts to pin Goa on the world IT map. Sawant has announced an IT conclave to be held in August or September in association with GTA.
Sawant feels associations like GTA have played a perfect bridging role with the Government in solving problems and creating opportunities. Sawant stated that as a Chief Minister he is striving for ‘Antyodaya’ and ‘Swayampurna Goa’ and IT has a major role to play for him to achieve this vision. Additionally Sawant had a few successes as far as Goa going digital is concerned. He informed that the Gram Panchayats in Goa are already linked; and the Bharat Broadband network should soon be finalized. Electronic Manufacturing City project is on track. E-Governance was well explored during the pandemic. The focus would continue on IT infrastructure and skilled manpower development. Sawant assured that he is committed to build an IT culture and have Goa to be known as an IT state.
