Current Affairs

Stoppage of mining a Rs 34 billion impact: GMOEA Letter to Goa CM

The Goa Mineral Ore Exporters’ Association (GMOEA) has sent a letter to the Chief Minister informing the government that the stoppage of mining would impact the Goa Mining business by Rs 34 billion.

In its letter dated February 12, GMOEA said, as the livelihood of several dependent segments would be affected due to ceasing of mining activities in the state, it would leave the stakeholders of the industry without any alternate source of income.

Stoppage of mining would result in loss of direct and indirect employment in the range of 60,000 and including the dependents would take the figure up to 200,000 of the population, said the letter. Alongside, there is threat to increase of non-performing assets (NPA) for banks as entities in the mining machinery, trucks etc will lose their earning potential thereby burdening financial institutions, it explained.

The total contribution of mining (despite the present cap of 20 million tonne) and its activities to Goa’s gross domestic product (GDP) may still be over 10-12 percent, said GMOEA.

The Supreme Court last week cancelled 88 iron ore licences in Goa where these lease holders have now been told to stop operating by March 16 and apply afresh for leases.

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