The Supreme Court’s permission to e-auction 11.46 mt of iron ore, which was already been mined in Goa, is seen as a setback byexporters.
The SC said in its judgement that a monitoring committee will conduct the e-auction and deposit the amount generated in a separate account after deducting the royalty and trade taxes wherever applicable.
The order means that the mine owners will not get the money nor the ore they mined. Moreover, if they want to export the stock that is being auctioned, they will have to pay for it.
“The judgment is as a setback to Goa exporters as they were not allowed to export the ore which they had mined and money raised through auction will be deposited in a separate account,” said Glenn Kalavampara, Secretary, Goa Mineral Ore Exporters’ Association (GMOEA).
Ore produced in Goa is only exported and domestic mills don’t use it for steel making. Hence, exporters don't have a presence in the domestic market nor do they have any contracts.
Also, if new players buy ore through the auction mechanism for exports, it will only complicate matters.
“Entry of traders will only complicate the situation in exports business for which viability and other issues are not known at present,” added Glenn.
GMOEA has 22 members, half of which used to export 80% of the ore. Right now, they are sitting idle for want of ore and are incurring all recurring expenses.
The SC said in its judgement that a monitoring committee will conduct the e-auction and deposit the amount generated in a separate account after deducting the royalty and trade taxes wherever applicable.
The order means that the mine owners will not get the money nor the ore they mined. Moreover, if they want to export the stock that is being auctioned, they will have to pay for it.
“The judgment is as a setback to Goa exporters as they were not allowed to export the ore which they had mined and money raised through auction will be deposited in a separate account,” said Glenn Kalavampara, Secretary, Goa Mineral Ore Exporters’ Association (GMOEA).
Ore produced in Goa is only exported and domestic mills don’t use it for steel making. Hence, exporters don't have a presence in the domestic market nor do they have any contracts.
Also, if new players buy ore through the auction mechanism for exports, it will only complicate matters.
“Entry of traders will only complicate the situation in exports business for which viability and other issues are not known at present,” added Glenn.
GMOEA has 22 members, half of which used to export 80% of the ore. Right now, they are sitting idle for want of ore and are incurring all recurring expenses.
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