Team Goemkarponn
PANAJI: The Goa Chamber of Commerce and Industry (GCCI) has urged the Centre not to impose export duty on low-grade iron ore, cautioning that such a move would severely affect Goa’s mining sector, disrupt operations, and endanger thousands of livelihoods.
In a letter dated September 15 to Union Minister of Mines G. Kishan Reddy, GCCI President Pratima Dhond raised concerns over reports that export duty may be extended to iron ore fines and lumps with less than 58% iron content. The speculation stems from discussions at a stakeholders’ meeting on August 26 and the formation of an Advisory Committee on August 28, whose Terms of Reference included a clause hinting at such a levy.
GCCI highlighted that Goa’s iron ore averages just 54% Fe — far lower than ores from Odisha, Karnataka, Chhattisgarh, and Jharkhand. Most of Goa’s ore is unsuitable for domestic steel plants, which rely on higher-grade ores from eastern India that are more cost-efficient. Using Goan ore, it said, drives up steel production costs due to higher coal consumption and logistics, while even Goa’s pig iron producers largely depend on imported high-grade ore.
The chamber pointed out that export duties were originally meant to conserve high-grade ore and maximise export revenue — objectives already achieved with the 30% duty on ores above 58% Fe. With India now self-sufficient in iron ore, only surplus and low-grade stocks are exported.
Mining in Goa, it noted, has only recently restarted after years of suspension. Of 12 auctioned mining blocks, just three have begun production, with more expected later this year. The Supreme Court has capped output at 20 million tonnes annually, keeping Goa’s contribution below 5% of India’s total.
In this fragile recovery phase, an export duty on low-grade ore would undermine investor confidence, cause a revenue loss of over ₹800 crore annually, discourage competitive bidding in future auctions, and threaten the sector’s survival, GCCI warned.
The chamber recalled briefing Chief Minister Pramod Sawant on September 8, when he assured that the issue would be taken up. Reiterating its appeal, GCCI urged the Centre to maintain NIL export duty on low-grade ores from Goa and the Konkan, given the region’s structural disadvantages.
“This will safeguard livelihoods, sustain industry viability, uphold fair trade, and prevent destabilisation of a fragile mining economy,” GCCI said.
