PANAJI | Feb 23, 2017: The ambitious mining corridor project has been held back by the slump in the mining industry and the weak financial position of the state.

‘The Navhind Times’ has gathered that there has been no clarity over the funding pattern for the project, and that there are less chances of recovery of investment to be made due to the slowdown in the mining industry.

The government had proposed the mining corridor in three different stretches of South Goa – from Uguem to Guddemol, from Guddemol to Kapxem and from Prila to Uguem – to facilitate smooth transportation of iron ore.

Furthermore, the government had finalised the alignment for the first two stretches of the project asking the Goa State Infrastructure Development Corporation to take up work on these two stretches.
However, sources said that forest clearances for the same are yet to be obtained.

GSIDC officials had made detailed presentation as regards the two stretches of the proposed mining corridor – from Uguem to Guddemol and from Guddemol to Kapxem.

The sources pointed out that since most of the land identified for the project comes under government forest, clearances from the concerned department are a must for taking up the work.

The dedicated mining corridor in South Goa’s hinterland has been aimed at preventing any faceoff with villagers who often oppose iron ore transportation.

Initially mining companies had agreed to contribute to the project after the government pursued the matter with them.
But now the mining industry has been in slump casting shadow over the project.

Sources at the directorate of mines and geology said that in the current season total production of iron ore has been around 10 million tonne, making officials hope to achieve the target of 18 million tonne by March 2017.

It must be noted here that the Supreme Court has fixed annual capping of 20 million tonne for iron ore production in the state.

For the last three years, there has been negligible export of iron ore from Goa. Other ore producers, especially from Australia, have found a niche in international market particularly for lower-grade iron ore, sources said adding that it has been difficult for Goan ore exporters to regain the lost market.

There is yet another problem – availability of truckers.
Before 2012, there were around 25,000 trucks engaged in iron ore transportation. After the ore mining was banned, the state government introduced a scheme for mining dependants including mining truckers.

The directorate of mines and geology had initiated a process of registrations of trucks; but only 12000 trucks were registered.

After mining activities were resumed last year, only around 6,000 trucks have been engaged in iron ore transportation.

(Source: http://www.navhindtimes.in/)