TheUniongovernment has reduced the export duty on iron Ore below 58-grade from 50% to nil. The decision of the Centre, ahead of the auctioning of four mining blocks, may receive huge response from mining and steel companies to participate in the auction. The Union Government in May this year had increased the export duty on iron ore.
Most of the iron ore produced in Goa is low grade (below 58-grade), and most of it is exported. The Centre had also hiked export duty on ore above 58-grade to 50% from existing 30%. But it has also reduced it to 30%.
Mining in Goa came to a halt in March 2018, after theSupreme Courtquashed the second renewal of 88 mining leases.
The has put up four mining blocks for auction, of which three are in the north and one is in the south, and over 24 companies have shown interest in participating in the auction.
This is for the first time that the state government is auctioning leases to carry out mining activities in the state. The state government has revised the timeline for the auctioning process. Major steel and iron ore mining companies from outside Goa have shown interest in operating mines in the state.