60% drop in volumes when legal mining permitted, estimates GCCI

 

While the mining industry is speculating on the quantity of iron ore exported from Goa once legal and regulated mining begins, the GCCI for sure is expecting a huge drop in scale. 
 
 
In a pre-budget memorandum to the government the GCCI has said that mining volume is expected to be less than 40 per cent of peak mining operations once operations resume. It means that a large number of people will lose their jobs and a lot of spare capacity in trucks, barges and machinery will be created.
Consequently, recommendations are for disposal  of  spare  capacities  by  granting  sales  tax  exemption  on  re-sale  of trucks / barges / machinery  outside  Goa  through exemption in “C” Form
Speaking to the media, Mr Manguirish Pai Raikar, president, said that industry pre-budget memorandum to the government is usually a plea to reduce excise and taxes. But looking at the grim economic situation that has arisen in view of mining closure, it has been decided against  asking for any reduction in tariffs.
At the same time the appeal is for no fresh levies and tariffs on industry as there is ample scope for increasing tax and non-tax revenue by widening the tax base and plugging leakages in the collection system.
Other pre-budget demand from GCCI is introduction of NPV to attract fresh investment in manufacturing. As well as permitting contract farming to encourage small and marginal farmers to till the land as has been done in some of the northern states of India.
The pre-budget memorandum handed over to the government a few days back highlights three to four concern areas by the GCCI. They are decline in agriculture, stagnation in manufacturing, increasing dependence of services sector on tourism and regional disparities.
To address these concerns the GCCI has suggested special status for Goa, parallel high voltage transmission corridor in the hinterland, proper road traffic management, a setting up of container cargo station at Zuarinagar as well as integrated logistic hub at Dharbandora and Colvale.  Steps for industrial waste management is also essential as there is no facility in the state to manage industrial/e-waste and bio-medical waste.   [NT]