As mining activities are set to stop in Goa on Friday in compliance with a Supreme Court order, James Frank, a mechanic at Vedanta’s Codli mine in South Goa is one among thousands of workers facing an uncertain future. The mine where Frank used to work, had employed over 1,000. The apex court found fault in the way 88 leases were renewed by the Manohar Parrikar government in Goa in January 2015, just ahead of an ordinance promulgated by the Centre making auction mandatory for allocation of non-coal and non-fuel leases across the country, and asked the state to cancel all the leases and come out with fresh auction of the leases. Though the state government is mulling to file a review petition against the Supreme Court order soon, kindling hopes among those who have been earning their livelihoods from these mines; even a day of job loss would hit them hard as many of them have to pay their equated monthly instalments (EMI) at the beginning of the month. Though mining have been one of the main sources of revenue for the state exchequer, contributing as high as 20% to the state’s GDP in its hey days around 2010, the sector has received similar blow in 2012 as well, due to a ban imposed by the apex court on charges of illegal mining. It started limping back to normalcy only after 2015 even though the 20 million tonne per production cap, imposed then, is still valid.
According to Goa Mineral Ore Exporters’ Association (GMOEA), mining leases in Goa was originally granted as mining concessions by the erstwhile Portuguese government between 1941 and 1953, under which a mining concession did not have any limit on tenure. However, in 1987, the concessions were abolished and converted into mining leases under MMDR Act, 1987. The MMDR Amendment Act, which makes auction mandatory for allocation of leases, also provides that mining leases would be deemed to be extended from the date of their last renewal to March 31, 2030 in the case of captive mines and till March 31, 2020 for the merchant miners or till the completion of the renewal already granted, if any, or a period of 50 years from the date of grant of such leave, whichever is later.
The association recently knocked at the PMO’s door with the prayer of making requisite amendment in the MMDR Act to the effect that mining leases in Goa are deemed to be granted in 1987 for 50 years as per the provision of the Act. Nearly 60,000 people work in these mines and dependent on their livelihood in these mines. The industry engages nearly 12,000 trucks and 150 barges. The owners of these fleet of truck and barges are also apprehensive of the impending crisis that might turn their hard-earned assets into non-performing assets, which will further put pressure on the already struggling banking sector by an additional `1,000 crore. According to a senior mines ministry official, it will take at least 12-15 months to put these leases into auction.