Goa govt expects Rs 500 cr by collecting royalty on ore exports

Goa government expects to garner Rs 500 crore by March 2011 as royalty on the ore exported from state’s ports, a senior official said. ”During last two quarters of this financial year (FY), Rs 375 crore has been collected and with mining season yet to gain momentum, the revenue collection is expected to jump to projected Rs 500 crore mark,” Arvind Lolienkar, Director-Mines, told media. The corrective measures adopted for this fiscal has paid well for the department, he said.

Goa had earned Rs 292 crore for FY 2009-10. The jump in revenue is primarily due to royalty charged on ad-volerom, meaning the taxation depends upon international market prices. ”This is different from the earlier practice of charging fix Rs 8 per tonne on the ore exported,” Lolienkar said adding that department has meticulously streamlined its royalty collection methodology. The department has identified all revenue leaking points and exporters have been asked to deposit their royalty in time. “They have to deposit royalty by 10th of every month and file returns by 15th,” Lolienkar said.

Goa has exported 15 MT ore till September 15, this year as against the total of 42 MT ore exported FY 2009-10. Almost 80 per cent of the ore exported from Goa comprises of Iron ore. Chief Minister Digamber Kamat, after receiving flak for letting revenue drain, has worked out a mechanism of asking the ships to take No objection certificates (NOC) from the mines department before they leave the port. ”This will cut down on the export of illegal ore. The ship will have to certify legality of ore before it leaves overseas,” Lolienkar said.