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About E-auction on iron ore in Goa
According to an official, the first phase of auctioning mining blocks in Goa has been completed, with four companies winning bids for extracting ore from various mineral-rich areas of the coastal state. The e-auctioning process was conducted by the state Directorate of Mines and Geology (DMG) and will lead to the resumption of the iron ore mining industry, which had come to a halt in 2018 after the Supreme Court nullified 88 mining leases. Vedanta Limited won the bid for the Bicholim-Mulgao mining block, Salgaocar Shipping Company Pvt Ltd won the Shirigao-Mayem mineral block, Goa's Rajaram Bandekar Pvt Ltd won the Monte-de-Sirigao mining block, and Sociedade De Fomento Industries Private Limited won the Kalay Mines block. The DMG invited tenders to e-auction these four mining blocks, namely Mulgao, Sirigao-Mayem, Monte-de-Sirigao, and Kalay mine, in Bicholim taluka and Sanguem taluka, on September 30, 2022, through the Metal Scrap Trading Corporation.
Mining e-auction proceeds should be saved by the Goa government in a permanent fund for future generations:
Claude Alvares, an environmental campaigner, and director of the non-profit organization Goa Foundation, recently spoke at the launch of a book on the Goa mining case, where he urged the government to refrain from counting the revenue generated from the recent e-auctioning of iron ore mining leases. Instead, Alvares recommended that the funds be set aside for future generations.
Alvares noted that prior to 2009, the Goa government had received only Rs 20 crore from mining, which subsequently increased to Rs 900 crore in 2009 and remained consistent until mining was shut down due to the Central government's price changes. In contrast, with the e-auctioning of just four leases, the government is expected to earn Rs 32,805 crore.
Alvares proposed that the state government deposit this revenue in the Goa Iron Ore Permanent Fund, a fund mandated by the Supreme Court to receive 10% of the earnings from the auctioning. He emphasized that the revenue generated from the auctioning did not belong to the government, but rather represented the value of the ore located underground, which was handed down from previous generations and should be passed on to future generations.
The total value of the ore auctioned was Rs 43,602 crore, of which Rs 32,805 crore will be in the form of auction premiums to the government. Alvares explained that the Goa government could not utilize the Goa Iron Ore Permanent Fund, which currently has Rs 500 crore, and that the auctioning revenue of Rs 4,319 crore would be added to the fund for future generations. In summary, Alvares urged the government to set aside the revenue generated from the recent e-auctioning of iron ore mining leases for the benefit of future generations.
