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Goa Economy Losses Revenue Due to Closure of Iron Ore Mines

Dec 4,2018

It is reported that the closure of iron ore mining in Goa since the last 8 months has adversely affected the state's economy which is facing a loss of Rs 1,500-crore revenue every month from the sector besides jobs taking a hit.

 

On February 7 The Supreme Court ordered, to terminate 88 mining contract, a key source of revenue for the government which had to shut down their operations from March 16, bringing the entire industry, to a grinding halt.

 

Goa Minister Sudin Dhavalikar had last week told reporters that due to a closure of the mining industry revenue to the tune of Rs 1,500 crore is being lost per month, which has also impacted the livelihood of around 2.5 lakh people. He had said “The revenue source is decreasing right now due to a closure of mining we are losing around Rs 1,500 crore every month. To save the state from facing an economic slowdown the resumption of the industry is necessary ".

 

The Federation of Indian Minerals Industries (FIMI) fears the economy of the coastal state is staring at a downward spiral.

 

"If you calculate the total impact, almost 25 percent of the state’s economy has been impacted due to mining closure. In the long run, the economy will continue to unwind and it will have a disastrous impact," said Haresh Melwani, FIMI Managing Committee member and a mine owner from Goa.

 

He said the fresh money of Rs 6,000 crore which was being injected monthly into the state’s economy through exports of iron ore, has stopped now. The discontinuation of iron ore exports has stopped this money from flowing into the state. This was helping the country earn foreign exchange in a big way.

 

One of the concerns while the economic slowdown is, workers are staring at job losses due to the closure of mining operations.

 

The Goa Mining Peoples Front, a union of mining dependents, has said 4,000-5,000 people, who were employed with various mining firms, have lost their jobs in addition to 6,000 truck drivers.

 

The Goa Mining Peoples Front, a union of mining dependents, has said 4,000-5,000 people, who were employed with various mining firms, have lost their jobs in addition to 6,000 truck drivers.

 

"Markets in Goa's mining belts are deserted. People are controlling their spending as they don’t know when exactly the industry would resume," said Goa Mining People's Front president Puti Gaonkar.

 

He warned that if mining operations do not resume soon, there would be a catastrophic impact on the state's economy.