Manoj Caculo, President of GCCI along with Treasurer Chandrakant Gawas and Atul Jadhav, President of Goa Barge Owners Association met Governor of Goa Satya Pal Malik and submitted a memorandum requesting his help in convincing the Central leadership to take steps for immediate resumption of mining in Goa. Excerpts from the memorandum.
Goa Chamber of Commerce and Industry (GCCI) is an apex body representing trade and industry in the State of Goa. Founded in the year 1908, GCCI is one of the oldest Chambers of Commerce in the country with 550 plus members consisting of manufacturers in small, medium and large sectors, professionals, other sectoral associations etc.
We place before you the following facts on the Iron Ore Mining Industry in the state of Goa.
Iron Ore Mining Industry in the state has been present for more than 100 years and is supporting the livelihood of lakhs of Goans. Mining Concessions were granted way back in 1905 by the erstwhile Portuguese Govt.
The Mines and Minerals (Regulation and Development) Act, 1957, was made applicable to Goa Daman and Diu from October 1, 1963, except for Section 16 (Power to modify leases granted before October 25, 1949). In the interim, the Government sought information on the titles of concessions, and by various decrees collected levies, taxes and supervised extractions.
In the judgment of Vasudeva Mahadeva Salgaocar v/s Union of India & Others, the Hon’ble Supreme Court held that the Concessions cannot be considered as Lease, thereby restraining the Union Government from enforcing the above notification and treating the Concessions as Mining Leases. It is also on record that the another provision of collecting taxes and levies was also retrospective but the Hon’ble Court struck down the said clause and held that act is always prospective and cannot be enforced retrospectively.
The said Mining Concessions operated by complying with the relevant regulations till May 1987, when Parliament by a Special law namely The Goa, Daman and Diu Mining Concession (Abolition and Declaration of Mining Leases) Act, 1987 abolished the Concessions and by legal fiction deemed the same to be Mining Leases governed by the provisions of Mines and Minerals (Development and Regulation) Act, 1957. Although the Abolition Act was passed in 1987, the lease period was declared retrospectively from Dec 20, 1961.
The challenge to the Abolition Act is presently pending before the Hon’ble Supreme Court of India by Special Leave Petitions. The Supreme Court granted Leave and passed an interim order permitting the concessionaires to carry on mining operations and business in the mining areas for which renewal applications have been made.
Necessary and appropriate applications were made for Second Renewal of the Leases in terms of provisions of MMDR Act and the Mineral Concessions Rules, 1960 under the requisite statutory Form J, twelve months prior to the 1st Renewal coming to an end i.e. before 22nd November 2007. The said applications remained pending with the State Government while mining in the said leases continued in accordance with the then concomitant understanding of Rule 24A(6) i.e. in the event of the State Government not deciding upon the application, the previous lease would be deemed to be extended till the date of decision by the State Government. The aforesaid understanding / interpretation of Rule 24A of the MCR, 1960 was restricted by the Hon’ble Supreme Court in Goa Foundation vs. Union of India in 2014 only to situations pertaining to 1st renewals under MMDR Act.
The Hon’ble Supreme Court of India had by its order dated February 7th 2018 in the Special Leave to Appeal (Civil) No. 32138 of 2015 quashed the State Government Order granting Second Renewal of Mining Leases in the state of Goa. In addition to the same, the mining companies in the state were given time only till 15th of March 2018 to wrap up their operations, thereby resulting in widespread anxiety within mining dependents in the State of Goa.
Mining being the largest employment generator in the state of Goa, with close to 60000 persons earning livelihood through various avenues associated with the mining industry. The Supreme Court judgment had directly impacted a population of around 400,000 people in the state of Goa. Mining has played and continues to play a vital role in the economic development of Goa. The evolution of Goa’s Iron Ore Mining Industry and its manifold impact on the state’s socio-economic milieu has been well publicized in the past and has been one of the biggest earners of foreign exchange to the state exchequer.
The Mining Industry in its halcyon days:
• contributed over 20% of the state’s GDP.
• Over 80,000 people (15% of the Employable population) directly / indirectly employed in the state.
• Investments by individuals / families related to the mining sector included over 20,000 Trucks, 350 River Barges, 220 various Mining Machineries.
The mining industry in Goa has been the single largest contributor to state welfare for the past seven decades. All over the state, mining companies have played a vital role in institution building (hospitality, healthcare, education, sports etc.) and infrastructure. Apart from this, several ancillary industries have flourished in the state only due to promotion and investment by the mining industry.
After the stoppage of mining activities in the state, the mining dependent population had resorted to various measures to highlight their plight and demand for immediate resumption of mining activities which included having corner meeting through the length and breadth of the State starting with mining belts which was to mobilize popular support to their demand for resumption of mining operation in the state.
Considering the larger public sentiment and benefit at large even all the members of the State Legislature in August 2018, cutting across party lines and political affiliations have unanimously urged the State Government to take up with the Centre for initiating appropriate steps, including legislative measures to tackle the economic and social chaos that has befallen on the people engaged in the mining industry in Goa for their livelihood.
The industry has contributed towards the District Mineral Fund since its inception Rs.191.00 crores and to Goa Iron Ore Permanent Fund {(GIOPF) – a unique fund only existent in Goa} a further provision of Rs.399.00 crores.
The State Government has made several pleas to the concerned ministries at the Centre to take appropriate steps to bring about necessary legislative cure to synchronize and bring in a harmony between the two Acts – The MMDR Act and The Goa Daman & Diu Mining Concession (Abolition and Declaration as Mining Leases) Act 1987, such that the date of grant of the lease for the Mining Concessions in Goa that were abolished is clearly clarified and be stated as coming into effect on 23rd May 1987, the date on which the Act was given assent by the President of India. Most importantly, the Mines and Minerals (Development and Regulation) Act 2015 provided a platform for the continuity of mining in Goa when harmonized with the Abolition Act.
The Hon’ble Chief Minister Dr. Pramod Sawant after taking over has made similar representations to the Centre. He also had attended the meeting with Group of Ministers on the subject matter and presented the case of Goan Mining Industry.
After the stoppage of mining activities in the state many people who were directly employed in the industry have been retrenched and as a consequence have lost their jobs. Small entrepreneurs like truck, barge and machinery owners have lost their only source of income and are left clutching at the straws to safeguard their livelihood. Thousands of unskilled labourers, drivers, and mechanics have lost their only source of income.
The current lockdown due to pandemic Covid-19 has further aggravated the difficulties of the mining dependents in the state. During these tough time we pray before you Sir, to request the Centre to play its legislative role and on an urgent basis and provide the necessary relief so that the mining activities are resumed which will give a much awaited relief to the major industry and also boost the economy of the state
