Daijiworld Media Network - Porvorim

Porvorim, Mar 7: Facing the possibility that the ongoing crisis in West Asia could affect tourism, the government of Goa has turned its attention toward strengthening the state’s mining sector in the latest budget.

Presenting the budget in Porvorim, Chief Minister Pramod Sawant announced several measures aimed at supporting stakeholders in the mining industry, including truck and barge owners involved in transporting iron ore.

Sawant said the state expects to generate around Rs 300 crore in revenue from iron ore exports. To improve quality assessment and monitoring of mineral output, the government also plans to set up a laboratory for iron ore grade testing, with an estimated cost of Rs 3 crore.

As part of efforts to support logistics operators, the government will continue its green tax and fitness fee reimbursement scheme for truck owners affected by mining disruptions. The budget allocates Rs 4 crore for the continuation of this scheme.

In addition, a new financial assistance scheme will be introduced for barge owners. Under this initiative, the state government will collaborate with financial institutions to provide spot loans that will help barge operators repair and maintain their vessels used for transporting ore.

Sawant also highlighted recent progress in the mining sector, noting that the government has generated Rs 252 crore through the auction of 12 mineral blocks. The state conducted three rounds of mineral block auctions, resulting in the allocation of these blocks to different operators.

According to the Chief Minister, five of the auctioned mineral blocks are currently operational, while the remaining seven are still in the process of securing the necessary approvals.

Industry representatives welcomed the budget’s approach. Glenn Kalavampara, representing the Goa Mineral Ore Exporters' Association (GMOEA), said the industry was relieved that the government did not propose any additional taxes or levies on mining operations.

Kalavampara noted that the mining sector already faces a significant tax burden and stressed that policy stability would help the industry contribute more effectively to the state’s revenue.

He added that the actual revenue potential depends on factors such as the Average Selling Price (ASP) determined by the Indian Bureau of Mines and the grades of iron ore produced, which tend to fluctuate over time.

Based on current ASP estimates, Kalavampara said that if all 12 mineral blocks become operational, the sector could potentially generate over Rs 5,000 crore annually.

He further said that with a fourth round of mineral block auctions planned, the total revenue potential from Goa’s mining industry could rise even higher in the coming years.