Central Government rejected Shah Commission’s recommendation to curb Iron ore production and ban its export from Goa.
Central Government has rejected Shah Commission’s recommendation for ban in exports of Iron ore from Goa on 7 Feb, 2014. The proposal of limiting production of raw material from Goa to 12.5 MnT has also been rejected. Central Government said that Iron ore resources might even increase further and they are not limited.
The updated Action Taken Report (ATR), from the commission’s first interim report about the illegal mining in Goa was tabled in the Lok Sabha on 7 Feb, 2014. The government rejected ban on export because it has already increased the export duty from 20 to 30 percent on Iron ore’s export since December 2011. The step was taken to guarantee sufficient supply of the raw material in the domestic steel industries at a reasonable price.
However, the ATR says that the EXIM (export-import) policy could be revisited if the assessment of reserves and domestic demand, call for any such action. Shah Commission recommended ban in exports owing to huge profit gains that gave a way to illegal mining in the country.
The government said that it was on commission’s recommendation for public auction of the mining leases, that the mining bill was introduced in the Lok Sabha in Dec, 2011 allowing for competitive bidding.
According to the government, if the productions are limited depending on the reserves and resources, it will not benefit in growth of industry. It has also appointed an expert agency for studying the impact of mining in Goa to come up with solutions and take care of the illegal mining.