Goa’s mining sector may see the light of day again with onboarding of new players

Coal and iron ore mining, and their related projects, which once contributed significantly to Goa's economy, were shut down years back due to environmental reasons. However, Goa's mining sector may soon get to see the light of day once again.

Recently, Chief Minister, Pramod Sawant announced the formation of a mining corporation, through which mining will be restarted. Furthermore, he mentioned how the government is serious about the auction of leases.

Up until recently, only a handful of players including Vedanta Group were involved in mining and activities associated with it, in Goa. Vedanta even holds stake at the coal handling facility of Mormugao Port. The latter also accounts for cargo handling supporting JSW’s and Adani’s coal project in Goa, among others.

Nevertheless, the recent announcement by the chief minister marks a turning point in Goa’s mining sector. If executed successfully, this will not only give opportunities to new players, but also boost employment and the state’s economy, on a larger scale.

After mining was banned in Goa, the unemployment rate in Goa surged to around 34.5 per cent from less than 10 per cent, thus putting the livelihoods of over 30 per cent of the state's population at stake.

Moreover, for a state whose economy is predominantly dependent on tourism, the pandemic has come as a huge blow. Considering these factors, the decision by the state government of resuming mining operations is, in fact, the need of the hour.

This is not to say that projects which involve coal handling and mining are not detrimental to the environment. However, if done sustainably, the impact can be reduced. For instance, Adani’s cargo handling systems servicing coal projects in Goa use spray for controlling dust emissions. Likewise, Vedanta Sesa Goa Iron Ore has been initiating a series of plantation drives across its projects in Goa including Codli Mine.

Coal and mining projects have always been a matter of contention but like any other activity, there are sustainable ways to go about with them and the above instances are a testament to this.