India: Goa govt invites bids for grant of four iron ore mining leases

The Goa government has put up for auction four iron ore blocks, hopefully ending a decade long innings of uncertainty.

These blocks, three in the north - a block in Bicholim, one in Sirigao-Mayem and one in Monte de Sirigao -- and one at Kalay in South Goa are the first set of mines and will be followed by auctions at regular intervals according to senior officials in the state.

Director of Mines, Suresh Shanbhogue, speaking at a SteelMint conference in August had assured the industry that Goa was on track for auctions of mines - a promise Pramod Sawant while campaigning for a second term as Chief Minister.

The tender document of Rs 5 lakh each can be bought by November 15 and technical bids are to be submitted by November 21. These previously mined areas do not have valid environment or forest clearances. The successful bidder will have to get them afresh. More importantly the state government has reserved its claim over the dumps within the lease, for up to a year from the date of signing a letter of intent.

Rights to these mines had previously been held by Chowgule, Rajaram Bandekar, N S Narvekar and Vedanta Ltd according to a media report. Except for Anil Agarwal's Vedanta that acquired mining rights in the state by acquiring companies, most in the state had been granted rights when Goa was a Portuguese colony. Some are still pursuing their hereditary claim to these rights in court, a claim that the government believes has been rendered void by the Centre's amendment to the mining act in 2015.

Having renewed 88 leases in the run up to this important amendment that mandated auction of mining rights, Goa had been caught completely off guard when these were invalidated by the SC Court. After years of indecision, it finally aligned with the Centre's mandate when it issued notices under Rule 12 (1) (hh) - a provision that gave lessees a month to vacate leases in May this year.

This was contested by some. The High Court of Bombay at Goa has heard the matter and reserved its judgement. That the state has now put up four blocks for auction suggests that it believes the verdict, reserved by the court, is in its favour.

Goan ore, relatively low grade, has been primarily exported. Exports currently have almost come to a standstill after the GoI decision to impose a 50 percent export duty.

- By Meera Mohanty