PANAJI | March 31, 2016: In a major departure from convention, Goa cabinet today decided to auction the mining sites in the coastal state in future instead of leasing them out.

"The Cabinet has resolved to withdraw the Goa Grant of Mining Lease Policy, 2014, which means the iron ore mining leases in the state would be auctioned in future and no more renewals of existing leases," Chief Minister Laxmikant Parsekar told reporters after a cabinet meeting.

The government had renewed leases of these sites after the Supreme Court lifted the ban on mining.

Parsekar said that altogether 89 leases were renewed, but they will be auctioned when their lease period expires in 2027.

"The leases granted to mine-owners would be cancelled or suspended if they fail to commence the operation during upcoming mining season," he said.

The CM said 14-15 mining leases out of 89 have begun extracting ore thus picking up the mining activity in the state.

"I wanted majority of them (leases) to commence operation in the ongoing season but due to several issues related to market and taxation, it could not happen," he said.

"With the slashing of export duty and state taxes, I don't find any reason for mine owners to delay the activities further," Parsekar said.

Union government in its recent budget abolished Export Duty on the low grade ore which will help the industry to export the ore.

(Source: http://economictimes.indiatimes.com/)