Goa Mineral Ore Exporters' Association said that the hike in export duty on iron ore from 5% to 20% will reduce Goan exports substantially, resulting in a corresponding reduction in royalty earnings to the state.
Mr S Sridhar executive director at GMOEA said that "Goa's low grade ore has no use in the domestic market and raising its duty in line with high grade ore may make it economically unviable to export."
Warning that the ripple effect will be that employment to mining trucks and barges will be affected and importers will lose confidence in Goan exporters' reliability and may even shun them, he said the association will move the state and central governments to reconsider the hike.
Mr Sridhar explained that buyers will not pay a higher price for ore whose price is otherwise low, just because the Indian government has raised its export duty. He said that "Mining companies may reduce exports which in turn will reduce the state's royalty earnings."
Mr Glen Kalavampara of GMOEA said that Salgaocar Mining is considering reducing exports from 4 million tonnes to about 1 million tonnes. He added that "If mining companies reduce their exports by 75%, the state government's royalty will suffer."
Mr Kalavampara said that "Mining is pumping so much revenue into the state's coffers. We are being penalized for no fault of ours. The government's intentions might have been to put curbs on exports of items which are used in domestic processing. But low-grade ore has no use domestically and can only be exported. Also, the demand for it is never uniform. We might even lose importers who may feel we are unreliable suppliers."
From April 2010 to January 2011, GMOEA exported 35 million tonnes of ore. Royalty paid to the state was around INR 250 per tonne exported.
Mr Arvind Lolienkar director of mines said that up to February 2011, the state earned an unprecedented INR 763 crore in royalty on iron ore exports. It may touch INR 900 crore by March 31st 2011.
He added that "Almost 99% of Goan exports comprise of iron ore and this is restricted to countries like China, Japan and South Korea."
Meanwhile, echoing the sentiments and commenting on the overall Budget, Goa Chamber of Commerce and Industry president Mr Cesar Menezes said that "Goa has high percentage of fine ore exports where the increase in export duty is 300%. This will result in huge tax burden on Goan ore exporters. Similarly, increase in service tax on hotel rooms and hospitals having more than 25 beds will adversely affect the tourism industry. GCCI will hold consultations with the mining and tourism sectors and present Goa's case."(sourced:www.domain-b.com)
Mr S Sridhar executive director at GMOEA said that "Goa's low grade ore has no use in the domestic market and raising its duty in line with high grade ore may make it economically unviable to export."
Warning that the ripple effect will be that employment to mining trucks and barges will be affected and importers will lose confidence in Goan exporters' reliability and may even shun them, he said the association will move the state and central governments to reconsider the hike.
Mr Sridhar explained that buyers will not pay a higher price for ore whose price is otherwise low, just because the Indian government has raised its export duty. He said that "Mining companies may reduce exports which in turn will reduce the state's royalty earnings."
Mr Glen Kalavampara of GMOEA said that Salgaocar Mining is considering reducing exports from 4 million tonnes to about 1 million tonnes. He added that "If mining companies reduce their exports by 75%, the state government's royalty will suffer."
Mr Kalavampara said that "Mining is pumping so much revenue into the state's coffers. We are being penalized for no fault of ours. The government's intentions might have been to put curbs on exports of items which are used in domestic processing. But low-grade ore has no use domestically and can only be exported. Also, the demand for it is never uniform. We might even lose importers who may feel we are unreliable suppliers."
From April 2010 to January 2011, GMOEA exported 35 million tonnes of ore. Royalty paid to the state was around INR 250 per tonne exported.
Mr Arvind Lolienkar director of mines said that up to February 2011, the state earned an unprecedented INR 763 crore in royalty on iron ore exports. It may touch INR 900 crore by March 31st 2011.
He added that "Almost 99% of Goan exports comprise of iron ore and this is restricted to countries like China, Japan and South Korea."
Meanwhile, echoing the sentiments and commenting on the overall Budget, Goa Chamber of Commerce and Industry president Mr Cesar Menezes said that "Goa has high percentage of fine ore exports where the increase in export duty is 300%. This will result in huge tax burden on Goan ore exporters. Similarly, increase in service tax on hotel rooms and hospitals having more than 25 beds will adversely affect the tourism industry. GCCI will hold consultations with the mining and tourism sectors and present Goa's case."(sourced:www.domain-b.com)
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